JPMorgan Chase & Co. Has Lowered Expectations for Dropbox (NASDAQ:DBX) Stock Price

Dropbox (NASDAQ:DBX) had its target price dropped by research analysts at JPMorgan Chase & Co. from $29.00 to $25.00 in a report released on Friday,Benzinga reports. The firm currently has a “neutral” rating on the stock. JPMorgan Chase & Co.‘s target price would suggest a potential downside of 1.88% from the company’s previous close.

Several other equities research analysts also recently commented on DBX. Wall Street Zen downgraded Dropbox from a “buy” rating to a “hold” rating in a report on Friday, January 23rd. UBS Group lowered their price target on Dropbox from $27.00 to $23.00 and set a “sell” rating for the company in a research note on Friday. Weiss Ratings reissued a “hold (c+)” rating on shares of Dropbox in a research note on Wednesday, January 21st. Finally, Royal Bank Of Canada dropped their price objective on Dropbox from $35.00 to $30.00 and set an “outperform” rating on the stock in a research note on Friday. One research analyst has rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Dropbox currently has an average rating of “Hold” and a consensus price target of $27.50.

Dropbox Stock Up 3.0%

DBX opened at $25.48 on Friday. The company’s 50-day moving average price is $26.48 and its 200 day moving average price is $28.36. Dropbox has a fifty-two week low of $23.63 and a fifty-two week high of $32.40. The firm has a market cap of $6.59 billion, a price-to-earnings ratio of 13.70, a price-to-earnings-growth ratio of 2.08 and a beta of 0.63.

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

Insider Activity at Dropbox

In other news, CTO Ali Dasdan sold 5,666 shares of the business’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $30.00, for a total transaction of $169,980.00. Following the completion of the sale, the chief technology officer owned 520,474 shares in the company, valued at $15,614,220. The trade was a 1.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Sarah Elizabeth Schubach sold 1,416 shares of the company’s stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $24.49, for a total value of $34,677.84. Following the transaction, the chief accounting officer directly owned 86,319 shares in the company, valued at $2,113,952.31. This trade represents a 1.61% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 430,423 shares of company stock worth $11,705,876. Company insiders own 29.95% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in the business. Corient Private Wealth LLC grew its stake in shares of Dropbox by 502.7% during the fourth quarter. Corient Private Wealth LLC now owns 138,938 shares of the company’s stock worth $3,862,000 after purchasing an additional 115,884 shares during the period. Mercer Global Advisors Inc. ADV boosted its stake in shares of Dropbox by 37.0% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 56,772 shares of the company’s stock worth $1,578,000 after buying an additional 15,318 shares during the last quarter. EP Wealth Advisors LLC bought a new stake in Dropbox during the fourth quarter worth $285,000. Empowered Funds LLC lifted its stake in Dropbox by 90.1% in the 4th quarter. Empowered Funds LLC now owns 102,976 shares of the company’s stock valued at $2,863,000 after purchasing an additional 48,793 shares during the last quarter. Finally, XTX Topco Ltd increased its holdings in shares of Dropbox by 259.1% during the 4th quarter. XTX Topco Ltd now owns 363,777 shares of the company’s stock worth $10,113,000 after acquiring an additional 262,472 shares during the last quarter. 94.84% of the stock is currently owned by institutional investors and hedge funds.

Key Dropbox News

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

About Dropbox

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.