William Blair Reaffirms Underperform Rating for Dropbox (NASDAQ:DBX)

Dropbox (NASDAQ:DBX)‘s stock had its “underperform” rating reiterated by investment analysts at William Blair in a research report issued to clients and investors on Monday, MarketBeat.com reports.

A number of other research firms have also recently issued reports on DBX. JPMorgan Chase & Co. cut their price objective on shares of Dropbox from $29.00 to $25.00 and set a “neutral” rating on the stock in a research report on Friday, February 20th. Wall Street Zen lowered Dropbox from a “buy” rating to a “hold” rating in a research report on Friday, January 23rd. Royal Bank Of Canada dropped their price target on Dropbox from $35.00 to $30.00 and set an “outperform” rating on the stock in a research note on Friday, February 20th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dropbox in a report on Wednesday, January 21st. Finally, UBS Group decreased their price objective on Dropbox from $27.00 to $23.00 and set a “sell” rating for the company in a report on Friday, February 20th. One investment analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Dropbox has a consensus rating of “Reduce” and an average target price of $27.50.

Dropbox Stock Performance

Dropbox stock opened at $25.01 on Monday. The stock has a market capitalization of $6.03 billion, a price-to-earnings ratio of 13.45, a PEG ratio of 1.77 and a beta of 0.63. Dropbox has a 52-week low of $23.63 and a 52-week high of $32.40. The stock’s 50 day moving average price is $25.54 and its two-hundred day moving average price is $28.00.

Dropbox (NASDAQ:DBX) last released its earnings results on Thursday, February 19th. The company reported $0.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.66 by $0.02. The company had revenue of $636.20 million for the quarter, compared to the consensus estimate of $627.83 million. Dropbox had a net margin of 20.17% and a negative return on equity of 37.47%. Dropbox’s quarterly revenue was down 1.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.73 EPS. On average, equities research analysts forecast that Dropbox will post 1.64 EPS for the current year.

Insider Buying and Selling at Dropbox

In other Dropbox news, CEO Andrew Houston sold 164,502 shares of Dropbox stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $25.66, for a total transaction of $4,221,121.32. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Ashraf Alkarmi sold 12,472 shares of the business’s stock in a transaction that occurred on Tuesday, March 3rd. The stock was sold at an average price of $26.00, for a total value of $324,272.00. Following the sale, the insider directly owned 414,661 shares of the company’s stock, valued at $10,781,186. This represents a 2.92% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 453,028 shares of company stock worth $11,773,578 in the last quarter. 28.59% of the stock is owned by insiders.

Institutional Investors Weigh In On Dropbox

Institutional investors and hedge funds have recently bought and sold shares of the stock. Rossby Financial LCC boosted its holdings in Dropbox by 128.5% during the 3rd quarter. Rossby Financial LCC now owns 937 shares of the company’s stock worth $28,000 after acquiring an additional 527 shares during the last quarter. Palisade Asset Management LLC bought a new position in shares of Dropbox during the third quarter valued at about $30,000. First Horizon Corp purchased a new position in Dropbox during the third quarter worth about $31,000. Neo Ivy Capital Management purchased a new position in Dropbox during the second quarter worth about $30,000. Finally, Kestra Advisory Services LLC bought a new stake in Dropbox in the 4th quarter worth about $31,000. 94.84% of the stock is owned by hedge funds and other institutional investors.

About Dropbox

Dropbox, Inc (NASDAQ: DBX) is a leading provider of cloud-based file storage, collaboration, and productivity tools. Founded in 2007 and headquartered in San Francisco, California, the company offers a suite of services designed to help individuals and organizations securely store, share, and manage digital content. Dropbox has grown from a simple file-syncing application into an integrated collaboration platform used by millions of customers around the globe.

At its core, Dropbox provides cloud storage plans tailored for consumers and businesses.