Dropbox (NASDAQ:DBX) CEO Sells $13,440,676.00 in Stock

Dropbox, Inc. (NASDAQ:DBX) CEO Andrew Houston sold 383,800 shares of Dropbox stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $35.02, for a total value of $13,440,676.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dropbox Stock Performance

Shares of DBX opened at $37.74 on Thursday. The stock has a 50 day simple moving average of $33.35 and a 200 day simple moving average of $28.40. Dropbox, Inc. has a 52-week low of $21.69 and a 52-week high of $38.17. The firm has a market capitalization of $8.52 billion, a PE ratio of 20.97, a P/E/G ratio of 5.54 and a beta of 0.65.

Dropbox (NASDAQ:DBX) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.75 EPS for the quarter, beating the consensus estimate of $0.74 by $0.01. The business had revenue of $631.50 million for the quarter, compared to analysts’ expectations of $626.69 million. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The firm’s revenue was up .9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.71 EPS. Equities research analysts predict that Dropbox, Inc. will post 1.94 EPS for the current fiscal year.

Dropbox News Summary

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox’s most recent quarterly results modestly exceeded expectations, with EPS of $0.75 versus the $0.74 consensus and revenue of $631.5 million versus the $626.7 million estimate. Revenue also grew 0.9% year over year, supporting the view that the business remains profitable and stable.
• Neutral Sentiment: Institutional investors own approximately 94.84% of DBX, and several smaller funds recently increased their holdings. This may provide some ownership support, although the disclosed purchases were relatively small compared with Dropbox’s overall market capitalization.
• Neutral Sentiment: A recent Seeking Alpha analysis viewed a rebound in Dropbox’s user trends as encouraging but downgraded the stock, arguing that the product’s long-term growth prospects remain weak. The mixed assessment highlights improving engagement but limited confidence in a strong growth reacceleration. Dropbox: User Rebound Encouraging, But This Remains A Dead Product (Downgrade)
• Negative Sentiment: Dropbox insiders disclosed sizable sales while the stock was trading near recent highs. CFO Ross Tennenbaum sold 97,558 shares for approximately $3.4 million, reducing his direct stake by 12.38%; CEO Ashraf Alkarmi sold 28,800 shares for about $1.0 million, reducing his position by 2.79%. Both transactions were executed under pre-arranged Rule 10b5-1 plans, which lessens—but does not eliminate—the bearish signal. Dropbox CFO Ross Tennenbaum Sells 97,558 Shares Dropbox CEO Sells 28,800 Shares
• Negative Sentiment: Analyst sentiment remains cautious, with a consensus rating of “Reduce” and an average price target of $30.75—below the stock’s recent trading range. Zacks Research has rated the shares “strong sell,” while Bank of America maintains an “underperform” view. RBC remains more bullish with a $42 target, but the broader consensus implies valuation risk.

Analyst Ratings Changes

A number of equities analysts recently weighed in on DBX shares. Zacks Research downgraded shares of Dropbox from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. Weiss Ratings upgraded shares of Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. Citigroup lifted their price objective on shares of Dropbox from $28.00 to $33.00 and gave the company a “neutral” rating in a research report on Friday, August 7th. Bank of America restated an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $42.00 target price on shares of Dropbox in a report on Thursday, September 3rd. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Dropbox currently has an average rating of “Reduce” and a consensus target price of $30.75.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DBX. Norges Bank purchased a new stake in Dropbox during the fourth quarter worth about $69,909,000. Arrowstreet Capital Limited Partnership grew its position in shares of Dropbox by 12.7% during the 1st 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 during the period. Wedge Capital Management L L P NC grew its position in shares of Dropbox by 26.4% during the 2nd quarter. Wedge Capital Management L L P NC now owns 3,005,173 shares of the company’s stock valued at $82,552,000 after acquiring an additional 627,111 shares during the period. Allianz Asset Management GmbH increased its stake in shares of Dropbox by 28.1% during the 4th quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock worth $75,626,000 after purchasing an additional 596,440 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Dropbox during the 1st quarter worth approximately $5,221,000. Institutional investors and hedge funds own 94.84% of the company’s stock.

Dropbox Company Profile

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.