Dropbox (NASDAQ:DBX) Raised to “Buy” at Zacks Investment Research

Zacks Investment Research upgraded shares of Dropbox (NASDAQ:DBX) from a hold rating to a buy rating in a research report report published on Wednesday morning, Zacks.com reports. They currently have $22.00 target price on the stock.

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. “

Other research analysts also recently issued research reports about the stock. ValuEngine upgraded shares of Dropbox from a hold rating to a buy rating in a report on Wednesday, October 2nd. Royal Bank of Canada dropped coverage on shares of Dropbox in a report on Thursday, September 26th. Macquarie dropped coverage on shares of Dropbox in a report on Thursday, September 26th. TheStreet downgraded shares of Dropbox from a c- rating to a d+ rating in a report on Friday, August 9th. Finally, Canaccord Genuity dropped coverage on shares of Dropbox in a report on Friday, September 27th. One research analyst has rated the stock with a sell rating, one has issued a hold rating and nine have given a buy rating to the company’s stock. The company has a consensus rating of Buy and a consensus target price of $28.56.

Dropbox stock opened at $19.27 on Wednesday. The firm has a market cap of $7.96 billion, a price-to-earnings ratio of -14.71 and a beta of 1.57. The company has a debt-to-equity ratio of 0.99, a current ratio of 1.18 and a quick ratio of 1.18. Dropbox has a fifty-two week low of $17.20 and a fifty-two week high of $27.15. The firm has a fifty day moving average price of $19.27 and a two-hundred day moving average price of $22.02.

Dropbox (NASDAQ:DBX) last released its earnings results on Thursday, August 8th. The company reported $0.10 earnings per share for the quarter, topping the Zacks’ consensus estimate of ($0.05) by $0.15. The firm had revenue of $401.50 million during the quarter, compared to analyst estimates of $401.09 million. Dropbox had a negative net margin of 2.91% and a negative return on equity of 6.57%. The business’s revenue was up 18.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.11 EPS. As a group, sell-side analysts expect that Dropbox will post -0.12 earnings per share for the current year.

In related news, insider Quentin Clark sold 16,674 shares of the company’s stock in a transaction dated Wednesday, July 24th. The shares were sold at an average price of $24.56, for a total value of $409,513.44. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Ajay Vashee sold 13,750 shares of the company’s stock in a transaction dated Thursday, September 19th. The shares were sold at an average price of $21.02, for a total transaction of $289,025.00. In the last 90 days, insiders have sold 93,742 shares of company stock worth $1,956,472. Insiders own 31.20% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of DBX. Geode Capital Management LLC increased its stake in Dropbox by 87.7% in the fourth quarter. Geode Capital Management LLC now owns 704,904 shares of the company’s stock valued at $14,401,000 after acquiring an additional 329,323 shares during the period. First Trust Advisors LP grew its stake in Dropbox by 2.7% during the first quarter. First Trust Advisors LP now owns 4,016,234 shares of the company’s stock worth $87,554,000 after buying an additional 104,439 shares during the last quarter. BlackRock Inc. grew its stake in Dropbox by 7.2% during the first quarter. BlackRock Inc. now owns 13,521,764 shares of the company’s stock worth $294,775,000 after buying an additional 910,593 shares during the last quarter. Xact Kapitalforvaltning AB bought a new stake in Dropbox during the first quarter worth about $270,000. Finally, Formula Growth Ltd. grew its stake in Dropbox by 19.3% during the first quarter. Formula Growth Ltd. now owns 772,000 shares of the company’s stock worth $16,830,000 after buying an additional 125,000 shares during the last quarter. 40.48% of the stock is currently owned by institutional investors and hedge funds.

About Dropbox

Dropbox, Inc provides a collaboration platform worldwide. Its platform allows individuals, teams, and organizations to collaborate and sign up for free through its Website or app, as well as upgrade to a paid subscription plan for premium features. The company has approximately 500 million registered users across 180 countries.

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