Ashraf Alkarmi Sells 28,800 Shares of Dropbox (NASDAQ:DBX) Stock

Dropbox, Inc. (NASDAQ:DBX) CEO Ashraf Alkarmi sold 28,800 shares of Dropbox stock in a transaction dated Friday, September 11th. The shares were sold at an average price of $35.54, for a total value of $1,023,552.00. Following the transaction, the chief executive officer owned 1,004,081 shares of the company’s stock, valued at $35,685,038.74. This trade represents a 2.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dropbox Stock Performance

Shares of Dropbox stock traded up $0.32 on Tuesday, hitting $37.63. The company had a trading volume of 4,287,887 shares, compared to its average volume of 3,960,374. The stock has a market capitalization of $8.49 billion, a price-to-earnings ratio of 20.91, a P/E/G ratio of 5.24 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 stock has a 50 day moving average of $33.00 and a 200-day moving average of $28.21.

Dropbox (NASDAQ:DBX) last posted its earnings results on Thursday, August 6th. The company reported $0.75 earnings per share for the quarter, beating analysts’ consensus estimates of $0.74 by $0.01. The company had revenue of $631.50 million for the quarter, compared to analyst estimates of $626.69 million. Dropbox had a negative return on equity of 24.26% and a net margin of 17.49%.The company’s revenue for the quarter was up .9% on a year-over-year basis. During the same quarter last year, the company earned $0.71 earnings per share. Equities analysts anticipate that Dropbox, Inc. will post 1.94 earnings per share for the current year.

Key Stories Impacting Dropbox

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: A recent analysis said Dropbox’s user rebound is encouraging, which could support investor confidence in customer retention and engagement despite broader concerns about the product’s growth prospects. Dropbox: User Rebound Encouraging, But This Remains A Dead Product
• Positive Sentiment: Dropbox’s latest quarterly results modestly exceeded expectations, with earnings per share of $0.75 versus the $0.74 consensus and revenue of $631.5 million versus $626.7 million expected. Revenue increased 0.9% year over year, offering some fundamental support for the stock.
• Neutral Sentiment: Institutional ownership remains high at approximately 94.8%, and several funds recently increased their positions. However, these reported changes involved relatively small holdings and may have limited immediate influence on the share price.
• Negative Sentiment: CEO Andrew Houston sold 383,800 shares for approximately $13.4 million, while CFO Ross Tennenbaum sold 97,558 shares for about $3.4 million. Both transactions were executed under pre-arranged Rule 10b5-1 plans, reducing the likelihood that they reflect new information about business conditions, but insider selling can still weigh on sentiment. Dropbox Insider Sold Shares Worth $3,416,208
• Negative Sentiment: Analyst sentiment remains cautious. The stock carries a consensus “Reduce” rating and an average price target of $30.75, below its recent trading level. A separate research note downgraded Dropbox, arguing that the product remains mature or stagnant despite the user rebound. Dropbox Downgrade Analysis

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the business. Larson Financial Group LLC grew its position in Dropbox by 228.0% in the fourth quarter. Larson Financial Group LLC now owns 1,138 shares of the company’s stock worth $32,000 after acquiring an additional 791 shares in the last quarter. EverSource Wealth Advisors LLC increased its stake in Dropbox by 68.1% in the first quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company’s stock valued at $47,000 after acquiring an additional 831 shares during the last quarter. Hantz Financial Services Inc. raised its position in Dropbox by 143.0% during the fourth quarter. Hantz Financial Services Inc. now owns 3,519 shares of the company’s stock valued at $98,000 after purchasing an additional 2,071 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new stake in Dropbox during the fourth quarter valued at about $103,000. Finally, Eurizon Capital SGR S.p.A. bought a new stake in Dropbox during the fourth quarter worth about $119,000. Hedge funds and other institutional investors own 94.84% of the company’s stock.

Analysts Set New Price Targets

DBX has been the subject of several research analyst reports. Wall Street Zen lowered shares of Dropbox from a “buy” rating to a “hold” rating in a research note on Saturday, August 8th. Weiss Ratings upgraded Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research note on Thursday, August 13th. Royal Bank Of Canada reissued an “outperform” rating and issued a $42.00 target price on shares of Dropbox in a research report on Thursday, September 3rd. Citigroup increased their price target on Dropbox from $28.00 to $33.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Finally, William Blair raised Dropbox from an “underperform” rating to a “market perform” rating in a report on Friday, August 7th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Reduce” and an average price target of $30.75.

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.