Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors 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 lowered Dolby Laboratories from a “buy” rating to a “neutral” rating and set a $63.00 price objective on the stock. in a research report on Tuesday. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating and one has assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and an average price target of $59.33.

Dolby Laboratories (DLB) traded up $0.95 during trading hours on Thursday, reaching $64.06. The company’s stock had a trading volume of 369,800 shares, compared to its average volume of 334,100. Dolby Laboratories has a one year low of $47.19 and a one year high of $65.56. The stock has a market capitalization of $6,455.40, a price-to-earnings ratio of 33.02, a PEG ratio of 2.34 and a beta of 0.85.

Dolby Laboratories (NYSE:DLB) last released its quarterly earnings data on Wednesday, October 25th. The electronics maker reported $0.45 EPS for the quarter, beating the 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 company had revenue of $242.05 million for the quarter, compared to analyst estimates of $244.80 million. During the same period last year, the company posted $0.37 earnings per share. The firm’s revenue was up 3.9% compared to the same quarter last year. equities research analysts expect that Dolby Laboratories will post 2.24 EPS for the current fiscal year.

In other news, SVP Steven E. Forshay sold 9,355 shares of Dolby Laboratories stock in a transaction dated Monday, October 30th. The stock was sold at an average price of $57.86, for a total transaction of $541,280.30. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Kevin J. Yeaman sold 10,000 shares of Dolby Laboratories stock in a transaction dated Thursday, November 2nd. The stock was sold at an average price of $58.38, for a total value of $583,800.00. The disclosure for this sale can be found here. Insiders sold 508,099 shares of company stock worth $31,240,895 over the last three months. 43.80% of the stock is currently owned by corporate insiders.

Hedge funds and other institutional investors have recently made changes to their positions in the company. Schwab Charles Investment Management Inc. increased its position in shares of Dolby Laboratories by 4.0% during the second quarter. Schwab Charles Investment Management Inc. now owns 310,210 shares of the electronics maker’s stock worth $15,188,000 after acquiring an additional 12,045 shares during the last quarter. UBS Asset Management Americas Inc. grew its stake in Dolby Laboratories by 3.8% in the second quarter. UBS Asset Management Americas Inc. now owns 154,119 shares of the electronics maker’s stock worth $7,546,000 after purchasing an additional 5,696 shares in the last quarter. Principal Financial Group Inc. grew its stake in Dolby Laboratories by 11.7% in the second quarter. Principal Financial Group Inc. now owns 32,427 shares of the electronics maker’s stock worth $1,588,000 after purchasing an additional 3,396 shares in the last quarter. Intl Fcstone Inc. acquired a new position in Dolby Laboratories in the second quarter worth about $345,000. Finally, Schroder Investment Management Group acquired a new position in Dolby Laboratories in the third quarter worth about $35,761,000. 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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