Dropbox (NASDAQ:DBX) Stock Gets Price Target Increase from Royal Bank Of Canada

Dropbox (NASDAQ:DBX) had its price target hoisted by research analysts at Royal Bank Of Canada from $42.00 to $48.00 in a research report issued to clients and investors on Friday, Benzinga reports. The firm presently has an “outperform” rating on the stock. Royal Bank Of Canada‘s price objective would indicate a potential upside of 37.57% from the company’s current price.

Other research analysts have also recently issued research reports about the stock. Citigroup cut shares of Dropbox from a “neutral” rating to a “sell” rating and dropped their price target for the stock from $33.00 to $29.00 in a research note on Thursday, September 24th. William Blair upgraded Dropbox from an “underperform” rating to a “market perform” rating in a research note on Friday, August 7th. Weiss Ratings raised Dropbox from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday. Zacks Research upgraded Dropbox from a “strong sell” rating to a “hold” rating in a research report on Tuesday, October 6th. Finally, Bank of America reiterated an “underperform” rating on shares of Dropbox in a research report on Friday, August 7th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Reduce” and a consensus target price of $33.40.

Dropbox Price Performance

Shares of DBX traded down $0.87 on Friday, reaching $34.89. The company’s stock had a trading volume of 1,916,705 shares, compared to its average volume of 3,935,125. The stock has a market capitalization of $7.88 billion, a P/E ratio of 19.37, a PEG ratio of 3.56 and a beta of 0.62. The stock’s 50 day simple moving average is $35.31 and its two-hundred day simple moving average is $29.20. Dropbox has a 12-month low of $21.69 and a 12-month high of $38.22.

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

Insider Transactions at Dropbox

In related news, CFO Ross Tennenbaum sold 97,558 shares of the business’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $35.02, for a total value of $3,416,481.16. Following 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Eric Webster sold 15,830 shares of the company’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 completion of the transaction, the insider owned 416,236 shares of the company’s stock, valued at $14,189,485.24. The trade was a 3.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 1,331,268 shares of company stock valued at $46,553,783. 35.48% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Dropbox

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Elevation Wealth Partners LLC grew its stake in Dropbox by 63.0% during the third quarter. Elevation Wealth Partners LLC now owns 1,363 shares of the company’s stock valued at $46,000 after acquiring an additional 527 shares in the last quarter. EverSource Wealth Advisors LLC increased its holdings in Dropbox by 68.1% in the 1st 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. Farther Finance Advisors LLC increased its holdings in Dropbox by 166.5% in the 3rd quarter. Farther Finance Advisors LLC now owns 2,617 shares of the company’s stock valued at $89,000 after acquiring an additional 1,635 shares during the last quarter. Signaturefd LLC lifted its stake in Dropbox by 103.4% in 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 in the last quarter. Finally, Ethic Inc. purchased a new stake in Dropbox in the 3rd quarter worth $211,000. Institutional investors own 94.84% of the company’s stock.

Dropbox News Roundup

Here are the key news stories impacting Dropbox this week:

• Positive Sentiment: Q3 adjusted EPS of $0.88 beat the $0.73 consensus, while revenue of $637.3 million exceeded the $629.6 million estimate. Dropbox also said revenue growth excluding FormSwift and non-GAAP operating margin were ahead of guidance. Q3 earnings and revenue results
• Positive Sentiment: Q4 revenue guidance of $630 million–$633 million is above analysts’ $628.4 million estimate, extending the earnings report’s positive surprise. FY 2026 revenue guidance of $2.5 billion is in line with consensus. Dropbox Q3 results and guidance
• Positive Sentiment: Dropbox plans to acquire Tigris Data for $350 million and launch DBX Agent Cloud, aiming to expand into AI infrastructure. The company also highlighted early use of AI features, including usage credits by more than 20% of teams adopting them—potential opportunities for future growth. Tigris acquisition and AI infrastructure plans
• Neutral Sentiment: Paying users increased to 18.2 million from 18.07 million a year earlier, but reported Q3 revenue grew only 0.5% year over year. The modest growth rate may temper enthusiasm about the earnings beat. Revenue and paying-user growth
• Negative Sentiment: The $350 million Tigris deal adds acquisition spending and integration risk as Dropbox pursues AI-related growth; investors will need to see the strategy translate into meaningful results. CEO Andrew Houston also sold 383,800 shares under a pre-arranged Rule 10b5-1 plan, a transaction that may draw attention but is not necessarily a fresh discretionary signal. CEO share sale details

Dropbox Company Profile

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.