Dropbox (NASDAQ:DBX) Rating Lowered to Hold at Wall Street Zen

Dropbox (NASDAQ:DBX) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report released on Saturday.

Several other research firms have also commented on DBX. JPMorgan Chase & Co. cut their price objective on Dropbox from $29.00 to $25.00 and set a “neutral” rating on the stock in a research report on Friday, February 20th. Citigroup upped their target price on Dropbox from $27.00 to $28.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. Royal Bank Of Canada reiterated an “outperform” rating on shares of Dropbox in a research note on Monday, June 1st. Weiss Ratings reiterated a “hold (c)” rating on shares of Dropbox in a report on Monday, May 4th. Finally, UBS Group reduced their price target on Dropbox from $27.00 to $23.00 and set a “sell” rating on the stock in a research report on Friday, February 20th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $27.00.

Dropbox Stock Performance

Shares of DBX stock opened at $25.97 on Friday. The company’s fifty day simple moving average is $25.90 and its 200-day simple moving average is $26.01. Dropbox has a 52 week low of $21.69 and a 52 week high of $32.40. The company has a market cap of $6.06 billion, a PE ratio of 14.19, a P/E/G ratio of 2.84 and a beta of 0.67.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, May 7th. The company reported $0.76 earnings per share for the quarter, beating the consensus estimate of $0.71 by $0.05. Dropbox had a net margin of 18.71% and a negative return on equity of 30.01%. The business had revenue of $629.50 million for the quarter, compared to analyst estimates of $620.56 million. During the same quarter in the previous year, the business posted $0.70 EPS. The business’s quarterly revenue was up .8% on a year-over-year basis. Equities research analysts expect that Dropbox will post 2.09 EPS for the current fiscal year.

Insider Transactions at Dropbox

In other Dropbox news, CTO Ali Dasdan sold 5,666 shares of the firm’s stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.56, for a total transaction of $156,154.96. Following the completion of the sale, the chief technology officer owned 514,611 shares in the company, valued at $14,182,679.16. This trade represents a 1.09% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider William T. Yoon sold 7,230 shares of Dropbox stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $27.57, for a total value of $199,331.10. Following the sale, the insider owned 366,963 shares in the company, valued at $10,117,169.91. This represents a 1.93% decrease in their ownership of the stock. 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 239,774 shares of company stock valued at $6,005,653 in the last three months. 35.48% of the stock is currently owned by company insiders.

Institutional Trading of Dropbox

Several institutional investors have recently added to or reduced their stakes in the stock. Rossby Financial LCC boosted its stake in Dropbox by 128.5% in the third quarter. Rossby Financial LCC now owns 937 shares of the company’s stock valued at $28,000 after acquiring an additional 527 shares during the period. Palisade Asset Management LLC acquired a new stake in shares of Dropbox during the 3rd quarter worth approximately $30,000. Kestra Advisory Services LLC bought a new stake in shares of Dropbox in the 4th quarter worth approximately $31,000. Larson Financial Group LLC lifted its holdings in shares of Dropbox by 228.0% in the 4th quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock worth $32,000 after purchasing an additional 791 shares during the last quarter. Finally, Geneos Wealth Management Inc. boosted its position in Dropbox by 78.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock valued at $36,000 after purchasing an additional 558 shares during the period. 94.84% of the stock is owned by institutional investors and hedge funds.

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.