Dropbox (DBX) Downgraded to “Hold” at Zacks Investment Research

Dropbox (NASDAQ:DBX) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.

According to Zacks, “Dropbox, Inc. is a service company. It offers a platform which enables users to store and share files, photos, videos, songs and spreadsheets. Dropbox, Inc. is headquartered in San Francisco, California. “

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Other research analysts have also recently issued research reports about the stock. ValuEngine cut shares of Dropbox from a “buy” rating to a “hold” rating in a research report on Monday, February 4th. Jefferies Financial Group decreased their target price on shares of Dropbox to $32.00 in a research report on Friday, February 22nd. Bank of America raised shares of Dropbox from a “neutral” rating to a “buy” rating and set a $33.00 target price on the stock in a research report on Friday, February 22nd. Finally, William Blair assumed coverage on shares of Dropbox in a research report on Tuesday, December 11th. They issued an “outperform” rating on the stock. Five analysts have rated the stock with a hold rating and twelve have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Buy” and a consensus price target of $33.71.

Shares of DBX traded down $0.46 during mid-day trading on Thursday, reaching $22.13. The stock had a trading volume of 2,890,911 shares, compared to its average volume of 2,776,494. The company has a current ratio of 1.45, a quick ratio of 1.45 and a debt-to-equity ratio of 0.13. Dropbox has a 52-week low of $18.50 and a 52-week high of $43.50. The firm has a market capitalization of $9.29 billion and a P/E ratio of -16.89.

Dropbox (NASDAQ:DBX) last announced its quarterly earnings data on Thursday, February 21st. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.05) by $0.03. Dropbox had a negative net margin of 34.84% and a negative return on equity of 77.19%. The firm had revenue of $375.90 million during the quarter, compared to analyst estimates of $369.64 million. Equities research analysts predict that Dropbox will post -0.14 earnings per share for the current fiscal year.

In other news, General Counsel Bart Volkmer sold 9,968 shares of the stock in a transaction dated Thursday, February 28th. The shares were sold at an average price of $23.99, for a total transaction of $239,132.32. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Ajay Vashee sold 13,731 shares of the stock in a transaction dated Friday, December 28th. The stock was sold at an average price of $21.00, for a total transaction of $288,351.00. The disclosure for this sale can be found here. Insiders have sold 101,961 shares of company stock worth $2,308,488 in the last three months.

Institutional investors and hedge funds have recently modified their holdings of the company. Hamilton Lane Advisors LLC grew its position in shares of Dropbox by 1,502.9% during the fourth quarter. Hamilton Lane Advisors LLC now owns 426,082 shares of the company’s stock worth $8,705,000 after acquiring an additional 399,500 shares during the last quarter. First Republic Investment Management Inc. acquired a new stake in shares of Dropbox during the third quarter worth $511,000. Victory Capital Management Inc. lifted its holdings in shares of Dropbox by 7.9% during the fourth quarter. Victory Capital Management Inc. now owns 2,090,309 shares of the company’s stock worth $42,705,000 after purchasing an additional 152,263 shares during the period. LPL Financial LLC lifted its holdings in shares of Dropbox by 54.0% during the third quarter. LPL Financial LLC now owns 51,046 shares of the company’s stock worth $1,370,000 after purchasing an additional 17,907 shares during the period. Finally, Kornitzer Capital Management Inc. KS lifted its holdings in shares of Dropbox by 37.9% during the fourth quarter. Kornitzer Capital Management Inc. KS now owns 79,858 shares of the company’s stock worth $1,631,000 after purchasing an additional 21,958 shares during the period. 32.08% of the stock is currently owned by institutional investors and hedge funds.

Dropbox Company Profile

Dropbox Inc provides a collaboration platform worldwide. Its platform allows individuals, teams, and organizations to create, access, and share content online. The company was formerly known as Evenflow, Inc and changed its name to Dropbox, Inc in October 2009. Dropbox Inc has strategic partnership with Zoom Video Communications, Inc Dropbox Inc was founded in 2007 and is headquartered in San Francisco, California.

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