Dropbox (NASDAQ:DBX) CFO Sells $3,416,481.16 in Stock

Dropbox, Inc. (NASDAQ:DBX) CFO Ross Tennenbaum sold 97,558 shares of the stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $35.02, for a total transaction of $3,416,481.16. Following the completion of the transaction, the chief financial officer directly owned 690,666 shares of the company’s stock, valued at approximately $24,187,123.32. The trade was a 12.38% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Dropbox Stock Performance

NASDAQ DBX opened at $37.74 on Thursday. The firm’s fifty day moving average price is $33.35 and its two-hundred day moving average price is $28.40. The stock has a market cap of $8.52 billion, a PE ratio of 20.97, a PEG ratio of 5.54 and a beta of 0.65. Dropbox, Inc. has a fifty-two week low of $21.69 and a fifty-two week high of $38.17.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings results on Thursday, August 6th. The company reported $0.75 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.74 by $0.01. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The company had revenue of $631.50 million during the quarter, compared to the consensus estimate of $626.69 million. During the same period in the prior year, the business earned $0.71 earnings per share. The company’s revenue for the quarter was up .9% compared to the same quarter last year. As a group, sell-side analysts predict that Dropbox, Inc. will post 1.94 earnings per share for the current fiscal year.

Dropbox News Roundup

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.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Wall Street Zen downgraded Dropbox from a “buy” rating to a “hold” rating in a research report on Saturday, August 8th. Bank of America restated an “underperform” rating on shares of Dropbox in a report on Friday, August 7th. Royal Bank Of Canada reaffirmed an “outperform” rating and issued a $42.00 price objective on shares of Dropbox in a research note on Thursday, September 3rd. Zacks Research lowered shares of Dropbox from a “hold” rating to a “strong sell” rating in a report on Wednesday, August 19th. 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 research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat, Dropbox has a consensus rating of “Reduce” and an average price target of $30.75.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of DBX. LSV Asset Management boosted its stake in shares of Dropbox by 1.1% in the 4th quarter. LSV Asset Management now owns 11,735,641 shares of the company’s stock valued at $326,251,000 after purchasing an additional 121,999 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its stake in Dropbox by 12.7% during the first quarter. Arrowstreet Capital Limited Partnership now owns 8,533,736 shares of the company’s stock worth $193,886,000 after buying an additional 960,109 shares during the last quarter. Wedge Capital Management L L P NC lifted its holdings in Dropbox by 26.4% in the second 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 buying an additional 627,111 shares during the period. Allianz Asset Management GmbH lifted its holdings in Dropbox by 28.1% in the fourth quarter. Allianz Asset Management GmbH now owns 2,720,372 shares of the company’s stock valued at $75,626,000 after buying an additional 596,440 shares during the period. Finally, Norges Bank bought a new stake in Dropbox during the fourth quarter valued at $69,909,000. 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.