Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

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.”

A number of other equities analysts have also issued reports on DLB. B. Riley reaffirmed a “buy” rating and set a $61.50 price target on shares of Dolby Laboratories in a research note on Thursday, September 14th. Dougherty & Co reaffirmed a “buy” rating and set a $63.00 price target 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 price objective (up from $49.00) on shares of Dolby Laboratories in a research note on Wednesday, September 13th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating and two have given a buy rating to the company’s stock. The company presently has a consensus rating of “Hold” and a consensus target price of $60.17.

Shares of Dolby Laboratories (NYSE DLB) traded up $1.04 during midday trading on Wednesday, reaching $63.04. The company’s stock had a trading volume of 295,400 shares, compared to its average volume of 227,350. The company has a market cap of $6,341.86, a price-to-earnings ratio of 32.49, a P/E/G ratio of 2.30 and a beta of 0.85. Dolby Laboratories has a 52-week low of $45.13 and a 52-week high of $63.34.

Dolby Laboratories (NYSE:DLB) last issued its quarterly earnings results on Wednesday, October 25th. The electronics maker reported $0.45 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 10.62% and a net margin of 18.66%. The firm’s quarterly revenue was up 3.9% on a year-over-year basis. During the same period last year, the company posted $0.37 EPS. equities research analysts forecast that Dolby Laboratories will post 2.24 EPS for the current fiscal year.

In other news, SVP Bob Borchers sold 148,361 shares of the firm’s stock in a transaction on Thursday, November 30th. The stock was sold at an average price of $62.15, for a total transaction of $9,220,636.15. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Mark Andrew Sherman sold 4,594 shares of the firm’s stock in a transaction on Tuesday, December 19th. The stock was sold at an average price of $62.45, for a total value of $286,895.30. The disclosure for this sale can be found here. Over the last three months, insiders have sold 544,409 shares of company stock valued at $33,369,495. Corporate insiders own 43.74% of the company’s stock.

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Raymond James Financial Services Advisors Inc. lifted its holdings in shares of Dolby Laboratories by 1.2% in the second quarter. Raymond James Financial Services Advisors Inc. now owns 7,769 shares of the electronics maker’s stock valued at $380,000 after purchasing an additional 94 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of Dolby Laboratories by 1.1% in the second quarter. Legal & General Group Plc now owns 18,586 shares of the electronics maker’s stock valued at $910,000 after purchasing an additional 199 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Dolby Laboratories by 9.8% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 2,331 shares of the electronics maker’s stock valued at $114,000 after purchasing an additional 209 shares in the last quarter. Los Angeles Capital Management & Equity Research Inc. lifted its holdings in shares of Dolby Laboratories by 0.3% in the second quarter. Los Angeles Capital Management & Equity Research Inc. now owns 141,530 shares of the electronics maker’s stock valued at $6,929,000 after purchasing an additional 380 shares in the last quarter. Finally, D.A. Davidson & CO. lifted its holdings in shares of Dolby Laboratories by 2.6% in the second quarter. D.A. Davidson & CO. now owns 26,566 shares of the electronics maker’s stock valued at $1,300,000 after purchasing an additional 672 shares in the last quarter. Institutional investors own 52.53% of the company’s stock.

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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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