Dropbox (NASDAQ:DBX) Downgraded to “Hold” Rating by Wall Street Zen

Dropbox (NASDAQ:DBX) was downgraded by research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Friday.

Several other brokerages also recently weighed in on DBX. Weiss Ratings reissued a “hold (c+)” rating on shares of Dropbox in a research report on Wednesday. Royal Bank Of Canada cut their target price on Dropbox from $38.00 to $35.00 and set an “outperform” rating on the stock in a research note on Monday, January 5th. One research analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Dropbox currently has a consensus rating of “Hold” and an average price target of $31.33.

Dropbox Price Performance

Dropbox stock traded up $0.06 during mid-day trading on Friday, reaching $26.30. The stock had a trading volume of 2,298,352 shares, compared to its average volume of 3,032,243. Dropbox has a one year low of $24.42 and a one year high of $33.33. The company has a 50-day moving average price of $28.13 and a two-hundred day moving average price of $28.64. The company has a market capitalization of $6.80 billion, a price-to-earnings ratio of 14.86, a PEG ratio of 2.14 and a beta of 0.62.

Dropbox (NASDAQ:DBX) last released its quarterly earnings data on Thursday, November 6th. The company reported $0.74 earnings per share for the quarter, beating analysts’ consensus estimates of $0.64 by $0.10. The business had revenue of $634.40 million during the quarter, compared to analyst estimates of $623.59 million. Dropbox had a net margin of 19.87% and a negative return on equity of 49.51%. Dropbox’s revenue was down .7% compared to the same quarter last year. During the same period last year, the business earned $0.60 EPS. On average, equities research analysts anticipate that Dropbox will post 1.64 earnings per share for the current fiscal year.

Insider Activity at Dropbox

In related news, insider Ashraf Alkarmi sold 10,098 shares of the firm’s stock in a transaction that occurred on Tuesday, November 18th. The shares were sold at an average price of $29.18, for a total value of $294,659.64. Following the sale, the insider owned 435,810 shares in the company, valued at approximately $12,716,935.80. This trade represents a 2.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider William T. Yoon sold 7,142 shares of Dropbox stock in a transaction that occurred on Tuesday, November 18th. The stock was sold at an average price of $29.19, for a total transaction of $208,474.98. Following the completion of the sale, the insider directly owned 206,228 shares of the company’s stock, valued at approximately $6,019,795.32. This trade represents a 3.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 406,620 shares of company stock valued at $11,703,370 over the last ninety days. Company insiders own 29.95% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the company. Rossby Financial LCC boosted its position in Dropbox by 128.5% in the third quarter. Rossby Financial LCC now owns 937 shares of the company’s stock worth $28,000 after purchasing an additional 527 shares during the last quarter. Palisade Asset Management LLC bought a new position in shares of Dropbox in the 3rd quarter worth approximately $30,000. First Horizon Corp purchased a new position in shares of Dropbox in the third quarter worth approximately $31,000. Neo Ivy Capital Management purchased a new position in shares of Dropbox in the second quarter worth approximately $30,000. Finally, LRI Investments LLC grew its position in Dropbox by 666.7% during the third quarter. LRI Investments LLC now owns 1,150 shares of the company’s stock valued at $35,000 after buying an additional 1,000 shares during the period. Institutional investors own 94.84% of the company’s stock.

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.