Dolby Laboratories (DLB) Downgraded to “Hold” at Zacks Investment Research

Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Wednesday, January 3rd.

According to Zacks, “Dolby's shares have fared better than the industry average in the last six months. 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. Based on present industry trends, the company remains confident that Dolby’s growth momentum will continue to accelerate, going forward. Also, the company’s mobile devices unit is expected to benefit from audio and consumer imaging programs, and also higher recoveries. However, 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 also hurt the company’s profitability. This apart, high operating expenses could exert pressure on its margins.”

Several other brokerages also recently issued reports on DLB. B. Riley set a $66.00 target price on Dolby Laboratories and gave the company a “buy” rating in a research note on Thursday, October 19th. Dougherty & Co reissued a “buy” rating and set a $63.00 target price on shares of Dolby Laboratories in a research note on Wednesday, September 13th. Finally, Piper Jaffray Companies reissued a “hold” rating and set a $52.00 target price (up previously from $49.00) on shares of Dolby Laboratories in a research note on Wednesday, September 13th. One investment analyst has rated the stock with a sell rating, two have given a hold rating and two have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $60.17.

Dolby Laboratories (DLB) traded up $2.03 during mid-day trading on Wednesday, hitting $64.29. The stock had a trading volume of 617,300 shares, compared to its average volume of 282,063. Dolby Laboratories has a 12-month low of $47.19 and a 12-month high of $64.74. The stock has a market cap of $6,640.00, a PE ratio of 33.14, a P/E/G ratio of 2.36 and a beta of 0.85.

Dolby Laboratories (NYSE:DLB) last posted its quarterly earnings data on Wednesday, October 25th. The electronics maker reported $0.45 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.27 by $0.18. Dolby Laboratories had a return on equity of 10.62% and a net margin of 18.66%. The firm had revenue of $242.05 million for the quarter, compared to analysts’ expectations of $244.80 million. During the same period in the previous year, the firm earned $0.37 EPS. The business’s quarterly revenue was up 3.9% on a year-over-year basis. equities analysts predict that Dolby Laboratories will post 2.24 earnings per share for the current year.

In other Dolby Laboratories news, insider Kevin J. Yeaman sold 30,000 shares of Dolby Laboratories stock in a transaction that occurred on Wednesday, October 18th. The stock was sold at an average price of $60.00, for a total value of $1,800,000.00. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Peter C. Gotcher sold 9,310 shares of Dolby Laboratories stock in a transaction that occurred on Wednesday, October 18th. The stock was sold at an average price of $60.00, for a total value of $558,600.00. The disclosure for this sale can be found here. Insiders have sold a total of 544,409 shares of company stock worth $33,369,495 in the last three months. 43.74% of the stock is owned by corporate insiders.

Large investors have recently added to or reduced their stakes in the business. Zurcher Kantonalbank Zurich Cantonalbank increased 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 worth $114,000 after acquiring an additional 209 shares during the last quarter. Berkshire Asset Management LLC PA bought a new stake in Dolby Laboratories in the 3rd quarter worth approximately $200,000. CIBC Asset Management Inc bought a new stake in Dolby Laboratories in the 3rd quarter worth approximately $204,000. The Manufacturers Life Insurance Company increased 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 worth $174,000 after acquiring an additional 725 shares during the last quarter. Finally, Campbell & CO Investment Adviser LLC bought a new stake in Dolby Laboratories in the 3rd quarter worth approximately $231,000. 52.53% of the stock is currently owned by institutional investors and hedge funds.

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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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