Dolby Laboratories (DLB) Cut to Hold at Zacks Investment Research
Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Tuesday.
According to Zacks, “Dolby’s fourth-quarter fiscal 2017 adjusted earnings trumped the Zacks Consensus Estimate by 15%, backed by top-line growth and higher interest income. In the last six months, Dolby's shares have fared better than the industry average. 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. The company’s mobile devices unit is expected to benefit from audio and consumer imaging programs, and also higher recoveries. However, on the negative side, 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.”
Other research analysts have also issued research reports about the company. B. Riley restated a “buy” rating and set a $61.50 price objective on shares of Dolby Laboratories in a research report on Friday, July 28th. Piper Jaffray Companies restated a “hold” rating and set a $52.00 price objective (up previously from $49.00) on shares of Dolby Laboratories in a research report on Wednesday, September 13th. BidaskClub lowered Dolby Laboratories from a “hold” rating to a “sell” rating in a research report on Saturday, August 5th. Finally, Dougherty & Co restated a “buy” rating and set a $63.00 price objective on shares of Dolby Laboratories in a research report on Wednesday, September 13th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating and two have assigned a buy rating to the company. Dolby Laboratories currently has a consensus rating of “Hold” and a consensus target price of $60.17.
Dolby Laboratories (NYSE:DLB) traded up 0.24% during trading on Tuesday, hitting $57.82. The stock had a trading volume of 125,356 shares. The company has a 50-day moving average of $58.13 and a 200 day moving average of $52.78. The firm has a market cap of $5.93 billion, a P/E ratio of 29.58 and a beta of 0.84. Dolby Laboratories has a 52-week low of $44.99 and a 52-week high of $61.45.
Dolby Laboratories (NYSE:DLB) last issued 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. The firm had revenue of $242.05 million during the quarter, compared to analyst estimates of $244.80 million. Dolby Laboratories had a return on equity of 10.73% and a net margin of 18.66%. The business’s quarterly revenue was up 3.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.37 earnings per share. On average, equities research analysts predict that Dolby Laboratories will post $2.45 earnings per share for the current fiscal year.
In related news, Director Peter C. Gotcher sold 9,310 shares of Dolby Laboratories stock in a transaction dated Wednesday, October 18th. The stock was sold at an average price of $60.00, for a total value of $558,600.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Dagmar Dolby sold 100,000 shares of Dolby Laboratories stock in a transaction dated Tuesday, August 22nd. The stock was sold at an average price of $48.28, for a total value of $4,828,000.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 1,365,310 shares of company stock valued at $69,257,700. 43.80% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Dolby Laboratories by 2.2% in the second quarter. Vanguard Group Inc. now owns 4,725,496 shares of the electronics maker’s stock worth $231,360,000 after acquiring an additional 103,702 shares in the last quarter. BlackRock Inc. grew its position in Dolby Laboratories by 19.8% in the second quarter. BlackRock Inc. now owns 2,913,371 shares of the electronics maker’s stock worth $142,639,000 after acquiring an additional 481,649 shares in the last quarter. American Century Companies Inc. grew its position in Dolby Laboratories by 6.9% in the second quarter. American Century Companies Inc. now owns 1,828,417 shares of the electronics maker’s stock worth $89,519,000 after acquiring an additional 117,955 shares in the last quarter. Renaissance Technologies LLC grew its position in Dolby Laboratories by 14.1% in the second quarter. Renaissance Technologies LLC now owns 1,549,100 shares of the electronics maker’s stock worth $75,844,000 after acquiring an additional 191,600 shares in the last quarter. Finally, Timucuan Asset Management Inc. FL grew its position in Dolby Laboratories by 61.3% in the second quarter. Timucuan Asset Management Inc. FL now owns 1,172,271 shares of the electronics maker’s stock worth $57,394,000 after acquiring an additional 445,411 shares in the last quarter. Institutional investors own 51.83% of the company’s stock.
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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