Royal Bank Of Canada Has Lowered Expectations for Dropbox (NASDAQ:DBX) Stock Price

Dropbox (NASDAQ:DBX) had its price target dropped by stock analysts at Royal Bank Of Canada from $35.00 to $30.00 in a note issued to investors on Friday, Marketbeat.com reports. The brokerage presently has an “outperform” rating on the stock. Royal Bank Of Canada’s price objective suggests a potential upside of 17.74% from the company’s previous close.

Several other research analysts also recently weighed in on DBX. Wall Street Zen downgraded Dropbox from a “buy” rating to a “hold” rating in a research note on Friday, January 23rd. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Dropbox in a report on Wednesday, January 21st. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $27.50.

Dropbox Stock Up 3.0%

Dropbox stock opened at $25.48 on Friday. The firm has a 50 day moving average price of $26.48 and a 200-day moving average price of $28.36. Dropbox has a twelve month low of $23.63 and a twelve month high of $32.40. The company has a market capitalization of $6.59 billion, a P/E ratio of 13.70, a P/E/G ratio of 2.08 and a beta of 0.63.

Dropbox (NASDAQ:DBX) last posted its quarterly earnings results on Thursday, February 19th. The company reported $0.68 EPS for the quarter, topping analysts’ consensus estimates of $0.66 by $0.02. Dropbox had a net margin of 20.17% and a negative return on equity of 41.01%. The company had revenue of $636.20 million for the quarter, compared to analysts’ expectations of $627.83 million. During the same quarter in the previous year, the firm posted $0.73 EPS. Dropbox’s revenue was down 1.1% on a year-over-year basis. Equities analysts expect that Dropbox will post 1.64 EPS for the current fiscal year.

Insider Transactions at Dropbox

In other Dropbox news, CEO Andrew Houston sold 164,502 shares of the firm’s stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $25.66, for a total value of $4,221,121.32. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CAO Sarah Elizabeth Schubach sold 1,416 shares of the company’s stock in a transaction dated Wednesday, February 18th. The shares were sold at an average price of $24.49, for a total value of $34,677.84. Following the sale, the chief accounting officer owned 86,319 shares in the company, valued at approximately $2,113,952.31. This represents a 1.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 430,423 shares of company stock worth $11,705,876 in the last three months. 29.95% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Dropbox

Several hedge funds have recently bought and sold shares of DBX. LSV Asset Management raised its position in shares of Dropbox by 38.1% during the 3rd quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock valued at $350,848,000 after buying an additional 3,205,140 shares in the last quarter. Norges Bank bought a new stake in Dropbox during the fourth quarter worth about $69,909,000. Arbejdsmarkedets Tillaegspension purchased a new position in shares of Dropbox in the 4th quarter worth about $22,050,000. Arrowstreet Capital Limited Partnership boosted its holdings in shares of Dropbox by 11.3% in the 4th quarter. Arrowstreet Capital Limited Partnership now owns 7,573,627 shares of the company’s stock worth $210,547,000 after purchasing an additional 767,119 shares in the last quarter. Finally, Allianz Asset Management GmbH increased its position in shares of Dropbox by 47.8% during the 3rd quarter. Allianz Asset Management GmbH now owns 2,123,932 shares of the company’s stock valued at $64,164,000 after purchasing an additional 686,577 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors.

Dropbox News Summary

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Q4 beat: Dropbox reported $0.68 EPS vs. $0.66 expected and revenue of $636.2M vs. $627.8M expected; management flagged accelerating customer growth and margin improvement tied to cost discipline. Dropbox Announces Fourth Quarter and Fiscal 2025 Results
• Positive Sentiment: Guidance: DBX gave Q1 revenue guidance of $618M–$621M (slightly above Street) and kept FY‑26 revenue around ~$2.5B, signaling modest upside to revenue expectations. Guidance in press release
• Neutral Sentiment: Insider sale: CAO Sarah Schubach sold 1,416 shares (~$34.7K) — a small trim relative to her remaining holdings and not an obvious signal of material insider de‑risking. SEC Filing
• Neutral Sentiment: Institutional flows: Several smaller funds modestly increased positions in Q4; overall institutional ownership remains high, limiting volatility from a single holder’s activity.
• Neutral Sentiment: Short‑interest data appears inconsistent in recent reports (reported as zero/NaN), so current positioning signals are unclear and likely unreliable in the short term.
• Negative Sentiment: Analyst pressure — JPMorgan cut its price target to $25 and set a “neutral” rating, which reduces upside expectations and may weigh on buying momentum. JPMorgan PT cut coverage
• Negative Sentiment: Analyst pressure — RBC trimmed its target from $35 to $30 (still “Outperform”), narrowing prior upside and tempering some bullish views. RBC price target cut coverage
• Negative Sentiment: Bearish commentary and premarket weakness: A Seeking Alpha piece cautioned that strong free cash flow may not be sustainable as users leave, and DBX was flagged among premarket decliners earlier, creating near‑term selling pressure. Seeking Alpha analysis Premarket movers

Dropbox Company Profile

Dropbox, Inc (NASDAQ: DBX) is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.