Dropbox (NASDAQ:DBX) Shares Gap Down Following Weak Earnings

Shares of Dropbox, Inc. (NASDAQ:DBX - Get Free Report) gapped down before the market opened on Friday following a weaker than expected earnings announcement. The stock had previously closed at $31.88, but opened at $29.53. Dropbox shares last traded at $27.63, with a volume of 3,616,850 shares changing hands.

The company reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.62 by ($0.11). The firm had revenue of $643.60 million during the quarter, compared to analysts' expectations of $638.61 million. Dropbox had a net margin of 17.75% and a negative return on equity of 132.63%.

Analyst Upgrades and Downgrades

Separately, Jefferies Financial Group lifted their price objective on Dropbox from $27.00 to $30.00 and gave the stock a "hold" rating in a research report on Monday, January 6th.

Insiders Place Their Bets

In related news, CFO Timothy Regan sold 10,000 shares of Dropbox stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $29.65, for a total transaction of $296,500.00. Following the sale, the chief financial officer now directly owns 403,764 shares in the company, valued at $11,971,602.60. The trade was a 2.42 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Andrew Houston sold 137,499 shares of the company's stock in a transaction on Wednesday, December 11th. The stock was sold at an average price of $30.05, for a total value of $4,131,844.95. Following the completion of the sale, the chief executive officer now directly owns 8,266,666 shares in the company, valued at approximately $248,413,313.30. The trade was a 1.64 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 900,238 shares of company stock worth $26,680,195. 28.59% of the stock is currently owned by corporate insiders.

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Institutional Trading of Dropbox

A number of hedge funds have recently modified their holdings of the business. Bessemer Group Inc. increased its stake in shares of Dropbox by 0.3% in the 4th quarter. Bessemer Group Inc. now owns 126,321 shares of the company's stock worth $3,794,000 after acquiring an additional 333 shares in the last quarter. Allworth Financial LP increased its stake in shares of Dropbox by 33.5% during the fourth quarter. Allworth Financial LP now owns 1,456 shares of the company's stock valued at $45,000 after purchasing an additional 365 shares in the last quarter. Heron Bay Capital Management increased its stake in shares of Dropbox by 2.3% during the fourth quarter. Heron Bay Capital Management now owns 16,769 shares of the company's stock valued at $504,000 after purchasing an additional 378 shares in the last quarter. Assenagon Asset Management S.A. lifted its holdings in shares of Dropbox by 0.4% during the third quarter. Assenagon Asset Management S.A. now owns 89,157 shares of the company's stock valued at $2,267,000 after purchasing an additional 383 shares during the last quarter. Finally, Banco Bilbao Vizcaya Argentaria S.A. boosted its position in shares of Dropbox by 5.1% in the 4th quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 8,419 shares of the company's stock worth $256,000 after purchasing an additional 407 shares in the last quarter. Institutional investors own 94.84% of the company's stock.

Dropbox Trading Up 0.6 %

The company has a market cap of $8.18 billion, a PE ratio of 18.74, a P/E/G ratio of 1.70 and a beta of 0.61. The firm has a 50 day moving average of $30.91 and a two-hundred day moving average of $27.67.

Dropbox Company Profile

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.