Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Thursday.
According to Zacks, “Over the past year, Dolby’s shares have underperformed the industry average. Stiff competition, price-sensitive nature of the entertainment industry and fluctuations of cinema product sales pose as significant headwinds to the company’s margins. Also, fluctuations in cinema product sales and maturity of the digital cinema market might hurt the company’s profitability. Unfavorable recovery in the broadcast business remains a threat. Heavy dependence of the company on OEMs and a handful of major customers also make the company vulnerable to unanticipated losses. In addition, intense competition and the price-sensitive nature of the entertainment industry add to the company’s woes. However, the company is seeing strong market traction of offerings under three of its new businesses—Dolby Voice, Dolby Vision and Dolby Cinema, which will boost growth. “
Separately, B. Riley reissued a “buy” rating and set a $65.50 price target on shares of Dolby Laboratories in a research report on Thursday, October 26th. Two investment analysts have rated the stock with a sell rating, two have assigned a hold rating and one has issued a buy rating to the company. The stock currently has a consensus rating of “Hold” and a consensus price target of $59.33.
Dolby Laboratories (NYSE:DLB) last announced its quarterly earnings results on Wednesday, October 25th. The electronics maker reported $0.45 earnings per share for the quarter, topping analysts’ consensus estimates of $0.27 by $0.18. The company had revenue of $242.05 million for the quarter, compared to analysts’ expectations of $244.80 million. Dolby Laboratories had a net margin of 18.66% and a return on equity of 10.62%. The business’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same period last year, the firm posted $0.37 earnings per share. research analysts expect that Dolby Laboratories will post 2.24 earnings per share for the current fiscal year.
In related news, SVP Steven E. Forshay sold 9,355 shares of the firm’s stock in a transaction on Monday, October 30th. The shares were sold at an average price of $57.86, for a total transaction of $541,280.30. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Bob Borchers sold 148,361 shares of the firm’s stock in a transaction on Thursday, November 30th. The stock was sold at an average price of $62.15, for a total transaction of $9,220,636.15. The disclosure for this sale can be found here. Over the last three months, insiders have sold 508,099 shares of company stock worth $31,240,895. Insiders own 43.80% of the company’s stock.
Several large investors have recently modified their holdings of the stock. Schwab Charles Investment Management Inc. raised its holdings in shares of Dolby Laboratories by 4.0% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 345,058 shares of the electronics maker’s stock worth $21,394,000 after acquiring an additional 13,149 shares during the period. Marathon Asset Management LLP raised its holdings in shares of Dolby Laboratories by 1.6% during the fourth quarter. Marathon Asset Management LLP now owns 565,109 shares of the electronics maker’s stock worth $35,037,000 after acquiring an additional 8,877 shares during the period. Knowledge Leaders Capital LLC acquired a new stake in shares of Dolby Laboratories during the fourth quarter worth $2,461,000. California Public Employees Retirement System raised its holdings in shares of Dolby Laboratories by 5.9% during the third quarter. California Public Employees Retirement System now owns 189,521 shares of the electronics maker’s stock worth $10,901,000 after acquiring an additional 10,521 shares during the period. Finally, Cubist Systematic Strategies LLC raised its holdings in shares of Dolby Laboratories by 24.3% during the third quarter. Cubist Systematic Strategies LLC now owns 20,883 shares of the electronics maker’s stock worth $1,201,000 after acquiring an additional 4,076 shares during the period. Institutional investors and hedge funds own 52.53% of the company’s stock.
WARNING: “Dolby Laboratories (DLB) Downgraded by Zacks Investment Research” was first published by American Banking News and is owned by of American Banking News. If you are accessing this piece on another domain, it was stolen and reposted in violation of United States & international copyright & trademark laws. The original version of this piece can be accessed at https://www.americanbankingnews.com/2018/01/18/dolby-laboratories-dlb-downgraded-by-zacks-investment-research.html.
About Dolby Laboratories
Dolby Laboratories, Inc designs and manufactures audio and imaging products for the cinema, television, broadcast and entertainment industries. Its products for cinema include Digital Cinema Servers and Cinema Audio Products, and broadcast and other include Dolby Conference Phone and Other Products. It offers services to support theatrical and television production for cinema exhibition, broadcast and home entertainment, including equipment training and maintenance, mixing room alignment and equalization, as well as audio, color and light image calibration.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Dolby Laboratories Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dolby Laboratories and related companies with MarketBeat.com's FREE daily email newsletter.