Dropbox (NASDAQ:DBX) Issues Quarterly Earnings Results, Beats Expectations By $0.10 EPS

Dropbox (NASDAQ:DBX) posted its earnings results on Thursday. The company reported $0.74 earnings per share for the quarter, topping the consensus estimate of $0.64 by $0.10, Briefing.com reports. Dropbox had a negative return on equity of 55.28% and a net margin of 19.87%.The firm had revenue of $634.40 million for the quarter, compared to analyst estimates of $623.59 million. During the same period in the previous year, the company posted $0.60 earnings per share. The company’s revenue for the quarter was down .7% on a year-over-year basis. Dropbox updated its FY 2025 guidance to EPS and its Q4 2025 guidance to EPS.

Dropbox Price Performance

Shares of DBX traded up $2.20 during mid-day trading on Friday, hitting $30.87. 9,066,755 shares of the company’s stock were exchanged, compared to its average volume of 3,030,412. Dropbox has a 52 week low of $24.42 and a 52 week high of $33.33. The company has a 50-day simple moving average of $29.80 and a 200 day simple moving average of $28.77. The company has a market cap of $8.33 billion, a PE ratio of 17.44, a P/E/G ratio of 4.07 and a beta of 0.65.

Insider Transactions at Dropbox

In other Dropbox news, insider Ashraf Alkarmi sold 10,000 shares of the firm’s stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $30.00, for a total value of $300,000.00. Following the completion of the transaction, the insider directly owned 459,333 shares in the company, valued at $13,779,990. This trade represents a 2.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CTO Ali Dasdan sold 12,812 shares of the company’s stock in a transaction that occurred on Monday, September 8th. The stock was sold at an average price of $30.00, for a total value of $384,360.00. Following the sale, the chief technology officer owned 551,060 shares in the company, valued at approximately $16,531,800. This represents a 2.27% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 318,698 shares of company stock worth $9,251,159. 29.95% of the stock is owned by insiders.

Hedge Funds Weigh In On Dropbox

Large investors have recently modified their holdings of the stock. Merit Financial Group LLC grew its holdings in shares of Dropbox by 4.4% during the 3rd quarter. Merit Financial Group LLC now owns 11,385 shares of the company’s stock worth $344,000 after purchasing an additional 480 shares in the last quarter. Geneos Wealth Management Inc. lifted its position in Dropbox by 78.0% during the second quarter. Geneos Wealth Management Inc. now owns 1,273 shares of the company’s stock worth $36,000 after purchasing an additional 558 shares during the period. EverSource Wealth Advisors LLC lifted its position in Dropbox by 88.0% during the second quarter. EverSource Wealth Advisors LLC now owns 1,681 shares of the company’s stock worth $48,000 after purchasing an additional 787 shares during the period. Vident Advisory LLC grew its stake in Dropbox by 6.3% during the second quarter. Vident Advisory LLC now owns 21,572 shares of the company’s stock worth $617,000 after buying an additional 1,286 shares in the last quarter. Finally, Cetera Investment Advisers increased its holdings in Dropbox by 10.8% in the 2nd quarter. Cetera Investment Advisers now owns 24,623 shares of the company’s stock valued at $704,000 after buying an additional 2,405 shares during the period. 94.84% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

DBX has been the topic of several recent analyst reports. Wall Street Zen upgraded Dropbox from a “hold” rating to a “buy” rating in a report on Saturday. UBS Group lowered shares of Dropbox from a “neutral” rating to a “sell” rating and cut their price target for the company from $29.00 to $27.00 in a research note on Thursday, September 18th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Dropbox in a report on Wednesday, October 8th. Finally, Royal Bank Of Canada raised their price objective on shares of Dropbox from $35.00 to $38.00 and gave the stock an “outperform” rating in a report on Friday. One analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Dropbox has a consensus rating of “Hold” and an average price target of $31.75.

About Dropbox

Dropbox, Inc provides a content collaboration platform worldwide. The company's platform allows individuals, families, 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. It serves customers in professional services, technology, media, education, industrial, consumer and retail, and financial services industries.