Dropbox, Inc. (NASDAQ:DBX) Receives Consensus Recommendation of “Reduce” from Brokerages

Shares of Dropbox, Inc. (NASDAQ:DBX) have received an average recommendation of “Reduce” from the six analysts that are currently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating on the company. The average 12-month price target among brokers that have updated their coverage on the stock in the last year is $27.00.

Several research firms recently issued reports on DBX. JPMorgan Chase & Co. cut their target price on Dropbox from $29.00 to $25.00 and set a “neutral” rating on the stock in a research note on Friday, February 20th. Weiss Ratings reissued a “hold (c)” rating on shares of Dropbox in a research note on Monday, May 4th. Royal Bank Of Canada raised their target price on Dropbox from $30.00 to $32.00 and gave the stock an “outperform” rating in a research note on Friday, May 8th. William Blair reissued an “underperform” rating on shares of Dropbox in a research note on Monday, March 23rd. Finally, Wall Street Zen raised Dropbox from a “hold” rating to a “buy” rating in a research note on Saturday, May 16th.

Insiders Place Their Bets

In other Dropbox news, Director Andrew William Moore sold 8,443 shares of the firm’s stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $27.57, for a total value of $232,773.51. Following the completion of the sale, the director directly owned 4,737 shares in the company, valued at $130,599.09. This trade represents a 64.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Houston sold 30,332 shares of Dropbox stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $27.50, for a total transaction of $834,130.00. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 339,263 shares of company stock valued at $8,428,641 over the last ninety days. 35.48% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Dropbox

Several institutional investors and hedge funds have recently made changes to their positions in DBX. LSV Asset Management increased its position in shares of Dropbox by 38.1% during the third quarter. LSV Asset Management now owns 11,613,642 shares of the company’s stock valued at $350,848,000 after acquiring an additional 3,205,140 shares in the last quarter. Norges Bank bought a new stake in shares of Dropbox during the fourth quarter valued at approximately $69,909,000. Arrowstreet Capital Limited Partnership increased its position in shares of Dropbox by 12.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock valued at $193,886,000 after acquiring an additional 960,109 shares in the last quarter. Arbejdsmarkedets Tillaegspension bought a new stake in shares of Dropbox during the fourth quarter valued at approximately $22,050,000. Finally, Allianz Asset Management GmbH grew its position in Dropbox by 47.8% in the 3rd quarter. Allianz Asset Management GmbH now owns 2,123,932 shares of the company’s stock worth $64,164,000 after purchasing an additional 686,577 shares during the period. Institutional investors own 94.84% of the company’s stock.

Dropbox Trading Up 2.6%

Shares of NASDAQ:DBX opened at $26.88 on Friday. The stock’s 50-day moving average price is $24.73 and its 200-day moving average price is $26.29. Dropbox has a 12-month low of $21.69 and a 12-month high of $32.40. The stock has a market capitalization of $6.27 billion, a P/E ratio of 14.69, a price-to-earnings-growth ratio of 2.94 and a beta of 0.64.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data on Thursday, May 7th. The company reported $0.76 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.71 by $0.05. Dropbox had a negative return on equity of 30.01% and a net margin of 18.71%.The firm had revenue of $629.50 million for the quarter, compared to analysts’ expectations of $620.56 million. During the same period last year, the firm earned $0.70 earnings per share. The company’s revenue for the quarter was up .8% compared to the same quarter last year. As a group, research analysts predict that Dropbox will post 2.13 EPS for the current year.

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.