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Dropbox (NASDAQ:DBX), the cloud storage company with an impressive 81% gross profit margin and market capitalization of $7.9 billion, reported that Chief Financial Officer Timothy Regan sold 1,500 shares of Class A Common Stock on October 15, 2025, at a price of $28.62, for a total transaction value of $42,930. According to InvestingPro analysis, the stock currently trades below its Fair Value.
Following the transaction, Regan directly owns 470,121 shares of Dropbox.
The sale was executed under a pre-arranged Rule 10b5-1 trading plan adopted on June 10, 2025.
In other recent news, Dropbox reported its second-quarter earnings for 2025, surpassing analyst expectations with an earnings per share (EPS) of $0.71 compared to the forecasted $0.62. Revenue also exceeded projections, reaching $626 million against an expected $617.83 million. Additionally, Dropbox has amended its existing Credit and Guaranty Agreement to secure up to an additional $700 million in delayed draw secured term loans, led by Blackstone Credit & Insurance. The company plans to use these funds to repay its outstanding convertible senior notes due in 2026.
In terms of stock ratings, UBS downgraded Dropbox from Neutral to Sell, citing concerns about demand for Dropbox Dash, the company’s new AI product, and ongoing pressure on its core File Sync and Share business. Conversely, Jefferies raised its price target for Dropbox to $30.00 from $28.00, maintaining a Hold rating due to the company’s strong operating margins. Dropbox achieved an operating margin of 41.5%, significantly exceeding its guidance of 37.5%, driven by reduced headcount and lower marketing expenses. Furthermore, Dropbox announced a $1.5 billion buyback plan, indicating its commitment to returning capital to shareholders.
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