Dropbox (NASDAQ:DBX) Stock Rated Equal Weight in New Coverage at Stephens

Stephens began coverage on shares of Dropbox (NASDAQ:DBX) in a research report released on Tuesday morning, Marketbeat reports. The firm issued an equal weight rating and a $39.00 price target on the stock.

DBX has been the topic of a number of other reports. Wall Street Zen cut shares of Dropbox from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Citigroup cut Dropbox from a “neutral” rating to a “sell” rating and reduced their price target for the stock from $33.00 to $29.00 in a report on Thursday, September 24th. Weiss Ratings raised Dropbox from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday, August 13th. Bank of America reissued an “underperform” rating on shares of Dropbox in a research report on Friday, August 7th. Finally, William Blair upgraded Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Reduce” and a consensus price target of $31.60.

Dropbox Trading Down 0.9%

NASDAQ DBX opened at $35.76 on Tuesday. The company has a market cap of $8.07 billion, a PE ratio of 19.51, a PEG ratio of 3.56 and a beta of 0.62. Dropbox has a 12 month low of $21.69 and a 12 month high of $38.22. The stock has a 50 day moving average of $35.31 and a 200-day moving average of $29.20.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings results on Thursday, November 5th. The company reported $0.88 EPS for the quarter, beating analysts’ consensus estimates of $0.73 by $0.15. Dropbox had a net margin of 17.49% and a negative return on equity of 24.26%. The firm had revenue of $637.30 million during the quarter, compared to analysts’ expectations of $629.59 million. During the same quarter last year, the company posted $0.74 earnings per share. The company’s revenue for the quarter was up .5% compared to the same quarter last year. As a group, sell-side analysts predict that Dropbox will post 1.94 EPS for the current fiscal year.

Insider Activity

In other Dropbox news, CFO Ross Tennenbaum sold 97,558 shares of the firm’s 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 sale, the chief financial officer directly owned 690,666 shares in the company, valued at $24,187,123.32. This trade represents a 12.38% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Webster sold 15,830 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $34.09, for a total value of $539,644.70. Following the sale, the insider owned 416,236 shares of the company’s stock, valued at approximately $14,189,485.24. This represents a 3.66% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 1,331,268 shares of company stock valued at $46,553,783. 35.48% of the stock is owned by company insiders.

Institutional Trading of Dropbox

Several institutional investors have recently added to or reduced their stakes in DBX. Elevation Wealth Partners LLC grew its stake in shares of Dropbox by 63.0% in the third quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company’s stock worth $46,000 after purchasing an additional 527 shares during the last quarter. EverSource Wealth Advisors LLC raised its position in Dropbox by 68.1% during the 1st quarter. EverSource Wealth Advisors LLC now owns 2,052 shares of the company’s stock worth $47,000 after purchasing an additional 831 shares during the last quarter. Farther Finance Advisors LLC raised its position in Dropbox by 166.5% during the 3rd quarter. Farther Finance Advisors LLC now owns 2,617 shares of the company’s stock worth $89,000 after purchasing an additional 1,635 shares during the last quarter. Signaturefd LLC raised its position in Dropbox by 103.4% during the 3rd quarter. Signaturefd LLC now owns 5,616 shares of the company’s stock worth $190,000 after purchasing an additional 2,855 shares during the last quarter. Finally, Ethic Inc. acquired a new position in Dropbox during the 3rd quarter worth about $211,000. 94.84% of the stock is currently owned by institutional investors.

Key Dropbox News

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Dropbox reported adjusted Q3 EPS of $0.88, above the $0.73 consensus, and revenue of $637.3 million, ahead of the $629.6 million estimate. The company called it a “beat-and-raise” quarter and said it achieved its fifth consecutive quarter of year-over-year revenue growth excluding FormSwift. Dropbox Q3 results
• Positive Sentiment: Paying users increased to 18.2 million from 18.07 million a year earlier, offering a modest sign of continued customer growth. Dropbox revenue and paying users
• Neutral Sentiment: Dropbox plans to acquire Tigris Data for $350 million and launch DBX Agent Cloud, expanding into AI infrastructure. The deal could support new AI offerings, though its cost and execution are factors investors may assess. Dropbox Tigris acquisition
• Negative Sentiment: CEO Andrew Houston sold 383,800 shares, worth about $13.7 million. The sale was made under a pre-arranged Rule 10b5-1 plan, which may temper its significance but could still draw investor attention. CEO stock sale

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.