SAN FRANCISCO – Dropbox, Inc. (NASDAQ:) Chief Financial Officer Timothy Regan recently sold company stock. According to a Form 4 filing with the Securities and Exchange Commission, Regan sold 2,500 shares of Class A stock on December 13, 2024. The sale was made at a weighted average price of $29.9899 per share, for a total transaction value of $74.974 . This transaction comes at a time when Dropbox, currently valued at $9.52 billion, has seen its share price rise 45% over the past six months. An analysis from InvestingPro suggested that the stock may remain undervalued despite this impressive rally.
The stock sale was conducted under a Rule 10b5-1 trading plan that Regan implemented on May 15, 2024. Such plans allow company insiders to set a predefined schedule for buying or selling shares to avoid potential conflicts of interest. Following the transaction, Regan will continue to hold 416,264 shares, with a portion subject to vesting conditions through February 2028. Dropbox has a remarkably high gross margin of 82.3%, indicating efficient operational performance. For a comprehensive analysis of insider trading and 12 other key insights, check out the full Dropbox InvestingPro research report.
In other recent developments, Dropbox has announced a new share repurchase program that will see it repurchase an additional $1.2 billion in shares. This complements a recently secured $2 billion loan primarily arranged by Blackstone Credit & Insurance, as well as the announcement of a significant 20% workforce reduction during the Q3 2024 earnings call. Despite these moves, BofA Securities maintained its Underperform rating on Dropbox, with an unchanged price target of $28.00. Although the responsible analyst recognized the new buyback program as a positive step towards returning capital to shareholders, he expressed concerns about the unclear pace of share buybacks.
In the third quarter, Dropbox reported a slight 0.9% year-over-year increase in revenue to $639 million. The company added approximately 19,000 new paid users and reported non-GAAP net income of $190 million. For the fourth quarter, Dropbox forecast revenue between $637 million and $640 million, with full-year guidance of $2.542 billion to $2.545 billion. Due to severance costs from workforce reductions, 2024 free cash flow expectations were revised down to $860 million to $875 million. For 2025, the company expects revenue to be flat compared to 2024, with free cash flow forecast at or above $950 million. These latest developments underscore Dropbox's strategic focus on its new AI-powered product, Dropbox Dash, and ongoing business transformation.
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