Key Points
- CEO Ashraf Alkarmi sold 28,800 Dropbox shares at an average price of $35.54, generating approximately $1.02 million. The sale was made under a pre-arranged Rule 10b5-1 trading plan and reduced his holdings by 2.79%.
- Dropbox’s latest quarterly results modestly beat expectations, with adjusted earnings of $0.75 per share versus $0.74 expected and revenue of $631.5 million versus $626.7 million forecast. Revenue rose 0.9% year over year.
- Analyst sentiment remains cautious, with a consensus “Reduce” rating and an average price target of $30.75, below the stock’s recent trading level. Institutional investors own approximately 94.84% of Dropbox’s shares.
Dropbox, Inc. (NASDAQ:DBX - Get Free Report) CEO Ashraf Alkarmi sold 28,800 shares of the stock in a transaction on Friday, September 11th. The stock was sold at an average price of $35.54, for a total transaction of $1,023,552.00. Following the sale, the chief executive officer owned 1,004,081 shares of the company's stock, valued at approximately $35,685,038.74. This represents a 2.79% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Dropbox Stock Performance
Shares of Dropbox stock opened at $37.63 on Wednesday. The company has a market capitalization of $8.49 billion, a P/E ratio of 20.91, a PEG ratio of 5.49 and a beta of 0.65. Dropbox, Inc. has a 1 year low of $21.69 and a 1 year high of $38.17. The company's fifty day moving average is $33.18 and its two-hundred day moving average is $28.31.
Dropbox (NASDAQ:DBX - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.75 EPS for the quarter, beating analysts' consensus estimates of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The business had revenue of $631.50 million during the quarter, compared to analysts' expectations of $626.69 million. During the same period in the prior year, the company earned $0.71 earnings per share. The business's revenue was up .9% compared to the same quarter last year. As a group, equities analysts expect that Dropbox, Inc. will post 1.94 earnings per share for the current year.
Hedge Funds Weigh In On Dropbox
Several institutional investors and hedge funds have recently added to or reduced their stakes in DBX. 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 valued at $32,000 after buying an additional 791 shares during the period. EverSource Wealth Advisors LLC grew its holdings in Dropbox by 68.1% during the first quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company's stock worth $47,000 after acquiring an additional 831 shares during the period. Hantz Financial Services Inc. raised its position in Dropbox by 143.0% in the fourth quarter. Hantz Financial Services Inc. now owns 3,519 shares of the company's stock worth $98,000 after acquiring an additional 2,071 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in Dropbox in the fourth quarter worth $103,000. Finally, Eurizon Capital SGR S.p.A. acquired a new stake in Dropbox in the fourth quarter valued at $119,000. Institutional investors and hedge funds own 94.84% of the company's stock.
Key Headlines Impacting Dropbox
Here are the key news stories impacting Dropbox this week:
- Positive Sentiment: Dropbox’s latest quarterly results modestly exceeded expectations, with earnings per share of $0.75 versus the $0.74 consensus estimate and revenue of $631.5 million versus the $626.7 million forecast. Revenue also increased year over year, offering evidence of continued profitability and operating stability.
- Positive Sentiment: Institutional investors own approximately 94.84% of Dropbox’s shares, while several smaller investment firms recently increased their positions. Broader institutional support can help underpin the stock’s valuation.
- Neutral Sentiment: A recent analysis said a rebound in Dropbox users is encouraging, although it questioned the product’s long-term growth prospects and downgraded the shares. The mixed assessment reflects improving engagement but continued concerns about strategic momentum.
- Negative Sentiment: Dropbox’s executives reported significant stock sales under pre-arranged Rule 10b5-1 trading plans. CEO Andrew Houston sold 383,800 shares for about $13.4 million, CFO Ross Tennenbaum sold 97,558 shares for about $3.4 million, and CEO Ashraf Alkarmi sold 28,800 shares for roughly $1.0 million. Although scheduled plans reduce the likelihood that the transactions reflect new insider concerns, the combined selling may weigh on investor sentiment.
- Negative Sentiment: Analyst sentiment remains cautious: the consensus rating is “Reduce,” with one Buy, four Hold and three Sell ratings and an average price target of $30.75. Zacks Research recently issued a “strong sell” view, while Citigroup maintained a neutral rating; these targets sit below the stock’s recent trading level and imply valuation risk.
Analyst Upgrades and Downgrades
A number of analysts have weighed in on the company. Bank of America reaffirmed an "underperform" rating on shares of Dropbox in a research report on Friday, August 7th. Zacks Research cut Dropbox from a "hold" rating to a "strong sell" rating in a research note on Wednesday, August 19th. Wall Street Zen cut Dropbox from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Royal Bank Of Canada reissued an "outperform" rating and issued a $42.00 price objective on shares of Dropbox in a research note on Thursday, September 3rd. Finally, Weiss Ratings upgraded shares of Dropbox from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday, August 13th. One analyst has rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the stock. According to data from MarketBeat.com, Dropbox presently has a consensus rating of "Reduce" and a consensus target price of $30.75.
View Our Latest Stock Report on Dropbox
About Dropbox
(
Get Free Report)
Dropbox, Inc (NASDAQ: DBX) is a technology company that provides cloud-based file storage, synchronization, sharing and collaboration services. Its platform enables individuals, businesses and organizations to store files online, access them across connected devices, and collaborate on documents and other digital content.
The company's offerings include Dropbox for file management and collaboration, Dropbox Paper for shared document and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.
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