Dropbox (NASDAQ:DBX) Stock Bumped Up to “Buy” by Wall Street Zen

Wall Street Zen upgraded shares of Dropbox (NASDAQ:DBX) from a hold rating to a buy rating in a research report sent to investors on Saturday,Wall Street Zen reports.

DBX has been the subject of several other reports. Citigroup downgraded Dropbox from a “neutral” rating to a “sell” rating and reduced their target price for the company from $33.00 to $29.00 in a report on Thursday, September 24th. William Blair raised Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th. Stephens started coverage on Dropbox in a report on Tuesday, November 3rd. They set an “equal weight” rating and a $39.00 price objective on the stock. Zacks Research raised shares of Dropbox from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 6th. Finally, Bank of America reaffirmed an “underperform” rating on shares of Dropbox in a research note on Friday, August 7th. Two analysts have rated the stock with a Buy rating, four have assigned a Hold rating and three have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Reduce” and an average price target of $33.40.

Dropbox Stock Performance

NASDAQ DBX opened at $34.66 on Friday. The stock has a market capitalization of $7.82 billion, a P/E ratio of 18.74, a P/E/G ratio of 3.42 and a beta of 0.62. Dropbox has a 1 year low of $21.69 and a 1 year high of $38.22. The business’s fifty day moving average is $35.29 and its two-hundred day moving average is $29.25.

Dropbox (NASDAQ:DBX) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.73 by $0.15. The business had revenue of $637.30 million during the quarter, compared to analyst estimates of $629.59 million. Dropbox had a negative return on equity of 22.88% and a net margin of 17.17%. The company’s revenue was up .5% compared to the same quarter last year. During the same period last year, the company posted $0.74 EPS. On average, research analysts forecast that Dropbox will post 2.33 earnings per share for the current year.

Insider Activity

In other news, insider William T. Yoon sold 12,382 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $34.78, for a total value of $430,645.96. Following the completion of the sale, the insider directly owned 366,693 shares of the company’s stock, valued at $12,753,582.54. This represents a 3.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Andrew Houston sold 383,800 shares of the stock in a transaction that occurred on Monday, November 2nd. The stock was sold at an average price of $35.81, for a total transaction of $13,743,878.00. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 1,331,268 shares of company stock worth $46,553,783. Corporate insiders own 35.48% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Elevation Wealth Partners LLC grew its stake in Dropbox by 63.0% in the third quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company’s stock valued at $46,000 after purchasing an additional 527 shares in the last quarter. EverSource Wealth Advisors LLC increased its position 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 buying an additional 831 shares during the last quarter. Farther Finance Advisors LLC increased its position in Dropbox by 166.5% during the third quarter. Farther Finance Advisors LLC now owns 2,617 shares of the company’s stock worth $89,000 after buying an additional 1,635 shares during the last quarter. Signaturefd LLC raised its holdings in Dropbox by 103.4% during the third quarter. Signaturefd LLC now owns 5,616 shares of the company’s stock valued at $190,000 after buying an additional 2,855 shares in the last quarter. Finally, Ethic Inc. bought a new position in Dropbox during the third quarter valued at about $211,000. Institutional investors and hedge funds own 94.84% of the company’s stock.

Dropbox News Summary

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox reported Q3 adjusted EPS of $0.88 versus estimates of $0.73 and revenue of $637.3 million versus $629.6 million expected. Q4 revenue guidance of $630 million–$633 million also topped the $628.4 million consensus. Q3 earnings and revenue top estimates
• Positive Sentiment: RBC raised its price target to $48 from $42 and maintained an Outperform rating, signaling improved analyst confidence. RBC raises Dropbox price target
• Positive Sentiment: Dropbox plans to acquire Tigris Data for $350 million to build out AI infrastructure and introduce DBX Agent Cloud. Management expects the deal to close in Q4 2026 and has indicated 150 basis points of operating-margin expansion in 2027. Dropbox to acquire Tigris Data Margin expansion outlook
• Neutral Sentiment: CEO Andrew Houston sold 383,800 shares under a pre-arranged Rule 10b5-1 trading plan; the planned nature of the sale makes its signal less clear. CEO share sale
• Negative Sentiment: Revenue increased just 0.5% year over year, highlighting the modest underlying growth rate. The $350 million Tigris purchase also brings investment and integration risks as Dropbox pursues its AI strategy.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a software company that provides cloud-based tools for storing, organizing, sharing and collaborating on files. Its platform enables individuals, businesses and teams to access documents, photos and other content across connected devices, synchronize files and manage shared workflows.

The company’s offerings include Dropbox for cloud storage and file collaboration, Dropbox Paper for shared documents and project work, Dropbox Sign for electronic signatures, and DocSend for securely sharing and tracking business documents.