Dolby Laboratories (NYSE:DLB) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note 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.”

Other equities research analysts have also recently issued reports about the stock. B. Riley reissued a “buy” rating and issued a $65.50 price objective on shares of Dolby Laboratories in a research note on Thursday, October 26th. Dougherty & Co restated a “buy” rating and issued a $63.00 target price on shares of Dolby Laboratories in a report on Wednesday, September 13th. Finally, Piper Jaffray Companies restated a “hold” rating and issued a $52.00 target price (up from $49.00) on shares of Dolby Laboratories in a report on Wednesday, September 13th. Two investment analysts have rated the stock with a sell rating, three have given a hold rating and one has issued a buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average price target of $62.00.

Dolby Laboratories (NYSE:DLB) opened at $65.24 on Wednesday. The company has a market cap of $6,851.25, a price-to-earnings ratio of 104.83, a price-to-earnings-growth ratio of 4.42 and a beta of 0.85. Dolby Laboratories has a 12-month low of $47.19 and a 12-month high of $74.29.

Dolby Laboratories (NYSE:DLB) last posted its quarterly earnings results on Wednesday, January 24th. The electronics maker reported $0.79 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.44 by $0.35. Dolby Laboratories had a net margin of 6.06% and a return on equity of 11.95%. The business had revenue of $287.80 million for the quarter, compared to analysts’ expectations of $265.75 million. During the same period in the prior year, the company posted $0.66 EPS. The business’s revenue for the quarter was up 8.1% on a year-over-year basis. analysts forecast that Dolby Laboratories will post 1.26 earnings per share for the current year.

In other news, EVP Mark Andrew Sherman sold 4,594 shares of the stock in a transaction dated Tuesday, December 19th. The shares were sold at an average price of $62.45, for a total transaction of $286,895.30. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Kevin J. Yeaman sold 10,000 shares of the stock in a transaction dated Thursday, November 2nd. The stock was sold at an average price of $58.38, for a total transaction of $583,800.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 518,744 shares of company stock worth $31,974,015. Insiders own 43.74% of the company’s stock.

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Raymond James Financial Services Advisors Inc. raised its holdings in 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 buying an additional 94 shares during the period. Legal & General Group Plc raised its holdings in 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 buying an additional 199 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in 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 buying an additional 209 shares during the period. Los Angeles Capital Management & Equity Research Inc. grew its position in 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 acquiring an additional 380 shares in the last quarter. Finally, D.A. Davidson & CO. grew its position in 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 acquiring an additional 672 shares in the last quarter. Hedge funds and other institutional investors own 52.61% of the company’s stock.

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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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