Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Monday.
According to Zacks, “Dolby’s first-quarter fiscal 2018 adjusted earnings trumped the Zacks Consensus Estimate by a whopping 79.6%, backed by top-line growth. Impressive market traction of offerings under three of its new businesses—Dolby Voice, Dolby Vision and Dolby Cinema—are likely to fortify its market footprint, going forward. However, the company’s products and services segments are seeing declining revenues, which is harming overall growth.Further, the company anticipates lower recoveries in broadcast business for fiscal 2018 to offset other growth drivers. Stiff competition, price-sensitive nature of the entertainment industry and fluctuations of cinema product sales also pose as significant headwinds to the company’s margins.Moreover, demand for new digital cinema screens is gradually slowing down, which in turn is impeding cinema product sales. In the past year, Dolby's shares have underperformed the industry average.”
Other equities analysts have also issued reports about the stock. B. Riley lowered shares of Dolby Laboratories to a “hold” rating and set a $63.00 target price on the stock. in a report on Thursday. JPMorgan Chase & Co. upped their price objective on shares of Dolby Laboratories from $63.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday. Two investment analysts have rated the stock with a sell rating, three have assigned a hold rating and one has given a buy rating to the stock. Dolby Laboratories currently has an average rating of “Hold” and a consensus target price of $62.00.
Dolby Laboratories (NYSE:DLB) last posted its earnings results on Wednesday, January 24th. The electronics maker reported $0.79 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.35. The company had revenue of $287.80 million for the quarter, compared to analyst estimates of $265.75 million. Dolby Laboratories had a net margin of 6.06% and a return on equity of 11.95%. Dolby Laboratories’s revenue was up 8.1% on a year-over-year basis. During the same period in the previous year, the business posted $0.66 EPS. analysts forecast that Dolby Laboratories will post 1.26 EPS for the current fiscal year.
In other news, CEO Kevin J. Yeaman sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, November 2nd. The shares were sold at an average price of $58.38, for a total value of $583,800.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, SVP Steven E. Forshay sold 30,069 shares of the company’s stock in a transaction that occurred on Friday, November 3rd. The stock was sold at an average price of $59.00, for a total transaction of $1,774,071.00. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 518,744 shares of company stock worth $31,974,015. Company insiders own 43.74% of the company’s stock.
Hedge funds have recently modified their holdings of the company. Janus Henderson Group PLC increased its stake in Dolby Laboratories by 352.2% during the 3rd quarter. Janus Henderson Group PLC now owns 2,657,618 shares of the electronics maker’s stock worth $152,875,000 after buying an additional 2,069,849 shares during the period. Schroder Investment Management Group purchased a new stake in Dolby Laboratories during the 3rd quarter worth approximately $35,761,000. BlackRock Inc. increased its stake in Dolby Laboratories by 19.8% during the 2nd quarter. BlackRock Inc. now owns 2,913,371 shares of the electronics maker’s stock worth $142,639,000 after buying an additional 481,649 shares during the period. Timucuan Asset Management Inc. FL increased its stake in Dolby Laboratories by 61.3% during the 2nd quarter. Timucuan Asset Management Inc. FL now owns 1,172,271 shares of the electronics maker’s stock worth $57,394,000 after buying an additional 445,411 shares during the period. Finally, Sumitomo Mitsui Asset Management Company LTD purchased a new stake in Dolby Laboratories during the 4th quarter worth approximately $22,952,000. Hedge funds and other institutional investors own 52.61% of the company’s stock.
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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.
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