Zacks Investment Research cut shares of Dolby Laboratories (NYSE:DLB) from a hold rating to a sell rating in a report published 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 cut shares of Dolby Laboratories from a buy rating to a neutral rating and set a $63.00 price objective on the stock. in a research note on Tuesday. Two analysts have rated the stock with a sell rating, two have assigned a hold rating and one has given a buy rating to the company. Dolby Laboratories has a consensus rating of Hold and a consensus price target of $59.33.
Dolby Laboratories (NYSE:DLB) last issued its quarterly earnings results on Wednesday, October 25th. The electronics maker reported $0.45 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.27 by $0.18. Dolby Laboratories had a net margin of 18.66% and a return on equity of 10.62%. The company had revenue of $242.05 million for the quarter, compared to the consensus estimate of $244.80 million. During the same quarter in the prior year, the company earned $0.37 EPS. Dolby Laboratories’s quarterly revenue was up 3.9% on a year-over-year basis. sell-side analysts anticipate that Dolby Laboratories will post 2.22 EPS for the current fiscal year.
In other news, EVP Mark Andrew Sherman sold 4,594 shares of the firm’s stock in a transaction that occurred on Tuesday, December 19th. The shares were sold at an average price of $62.45, for a total transaction of $286,895.30. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Kevin J. Yeaman sold 11,130 shares of the firm’s stock in a transaction that occurred on Monday, December 18th. The stock was sold at an average price of $62.47, for a total transaction of $695,291.10. The disclosure for this sale can be found here. Insiders have sold a total of 508,099 shares of company stock worth $31,240,895 in the last ninety days. Corporate insiders own 43.80% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Dolby Laboratories by 9.8% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,331 shares of the electronics maker’s stock valued at $114,000 after acquiring an additional 209 shares during the period. The Manufacturers Life Insurance Company grew its stake in Dolby Laboratories by 25.5% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 3,564 shares of the electronics maker’s stock valued at $174,000 after acquiring an additional 725 shares during the period. State of Alaska Department of Revenue acquired a new stake in Dolby Laboratories in the 4th quarter valued at $198,000. Berkshire Asset Management LLC PA acquired a new stake in Dolby Laboratories in the 3rd quarter valued at $200,000. Finally, CIBC Asset Management Inc acquired a new stake in Dolby Laboratories in the 3rd quarter valued at $204,000. 52.53% of the stock is currently owned by hedge funds and other institutional investors.
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Dolby Laboratories Company Profile
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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