Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Impressive market traction of Dolby Cinema technology is proving to be a major profit churner for Dolby. Moreover, it believes that surging demand for premium viewing experiences will fuel growth for Dolby Cinema over the long haul. The company’s growth strategy stands on three pillars, advancing the science of sight and sound, providing creative solutions, and delivering superior experiences. Successful execution in each of these areas has led to healthy growth over the past few quarters. The stock has outperformed the industry in the past six months on an average. However, escalating cost of sales has been a major concern for Dolby. Its products and services segments are witnessing declining revenue trends, which is hurting overall operating performance. Stiff competition, price-sensitive nature of the entertainment industry and fluctuations of cinema product sales pose significant threats to the company’s margin.”
Several other research firms have also issued reports on DLB. B. Riley decreased their price target on shares of Dolby Laboratories from $69.00 to $63.00 and set a “neutral” rating on the stock in a research report on Thursday, October 25th. R. F. Lafferty decreased their price target on shares of Dolby Laboratories from $81.00 to $80.00 and set a “buy” rating on the stock in a research report on Monday, October 22nd. Three investment analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Dolby Laboratories has an average rating of “Buy” and a consensus target price of $73.20.
NYSE:DLB traded up $0.04 during midday trading on Thursday, reaching $63.83. The stock had a trading volume of 81,915 shares, compared to its average volume of 332,366. Dolby Laboratories has a 1-year low of $58.17 and a 1-year high of $74.29. The firm has a market capitalization of $6.56 billion, a PE ratio of 26.59, a PEG ratio of 2.16 and a beta of 0.83.
Dolby Laboratories (NYSE:DLB) last posted its earnings results on Wednesday, October 24th. The electronics maker reported $0.47 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.30 by $0.17. Dolby Laboratories had a net margin of 10.43% and a return on equity of 12.72%. The business had revenue of $265.33 million for the quarter, compared to analyst estimates of $272.42 million. During the same period last year, the business posted $0.21 EPS. Equities analysts anticipate that Dolby Laboratories will post 2.45 EPS for the current fiscal year.
In other news, CFO Lewis Chew sold 35,000 shares of the firm’s stock in a transaction dated Friday, November 2nd. The shares were sold at an average price of $69.44, for a total transaction of $2,430,400.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Peter C. Gotcher sold 3,334 shares of the firm’s stock in a transaction dated Thursday, November 1st. The stock was sold at an average price of $70.00, for a total transaction of $233,380.00. The disclosure for this sale can be found here. Insiders sold a total of 66,693 shares of company stock worth $4,494,761 over the last 90 days. Company insiders own 40.23% of the company’s stock.
Large investors have recently added to or reduced their stakes in the company. Deutsche Bank AG lifted its holdings in shares of Dolby Laboratories by 72.9% during the 3rd quarter. Deutsche Bank AG now owns 302,615 shares of the electronics maker’s stock worth $21,171,000 after acquiring an additional 127,613 shares during the period. Public Employees Retirement System of Ohio lifted its holdings in shares of Dolby Laboratories by 49.9% during the 2nd quarter. Public Employees Retirement System of Ohio now owns 209,156 shares of the electronics maker’s stock worth $12,903,000 after acquiring an additional 69,610 shares during the period. Hsbc Holdings PLC lifted its holdings in shares of Dolby Laboratories by 27.7% during the 3rd quarter. Hsbc Holdings PLC now owns 4,968 shares of the electronics maker’s stock worth $348,000 after acquiring an additional 1,079 shares during the period. Blair William & Co. IL lifted its holdings in shares of Dolby Laboratories by 330.7% during the 3rd quarter. Blair William & Co. IL now owns 718,588 shares of the electronics maker’s stock worth $50,280,000 after acquiring an additional 551,746 shares during the period. Finally, Veritable L.P. bought a new position in shares of Dolby Laboratories during the 3rd quarter worth about $337,000. 56.18% of the stock is owned by institutional investors.
Dolby Laboratories Company Profile
Dolby Laboratories, Inc creates audio and imaging technologies that transform entertainment and communications at the cinema, at home, at work, and on mobile devices. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for TVs, set-top boxes (STBs), personal computers (PCs), gaming consoles, mobile devices, and digital radio; AVC, a digital video codec with high bandwidth efficiency used in media devices; Dolby AC-4, an audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for home theaters, cinemas, device speakers, mobile devices, and headphones.
Read More: Why do companies issue stock splits?
Get a free copy of the Zacks research report on Dolby Laboratories (DLB)
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.