Dolby Story

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DLB -- USA Stock  

USD 91.43  1.22  1.35%

It looks like DISH Network will be up for a correction way faster as its share price whent up 1.08% today to Dolby Laboratories's 1.0141%. As many rational traders are trying to avoid communication services space, it makes sense to go over Dolby Laboratories a little further and understand how it stands against DISH Network and other similar entities. We are going to analyze some of the competitive aspects of both Dolby and DISH Network.
Published over a month ago
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Will DISH Network (NASDAQ:DISH) and Dolby Laboratories (NYSE:DLB) deliver in November?
By analyzing existing basic indicators between Dolby Laboratories and DISH Network, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in DISH Network with a short position in Dolby Laboratories. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Dolby Laboratories has an asset utilization ratio of 51.51 percent. This suggests that the company is making $0.52 for each dollar of assets. An increasing asset utilization means that Dolby Laboratories is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Dolby or DISH Network is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Dolby Laboratories dividends

A dividend is the distribution of a portion of Dolby Laboratories earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Dolby Laboratories dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Dolby one year expected dividend income is about $0.48 per share.
The current year Payment of Dividends and Other Cash Distributions is expected to grow to about (72.1 M). In addition to that, Dividend Yield is expected to decline to 0.0121.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-88.6 M-72.1 M
Dividend Yield 0.014  0.0121 
Dividends per Basic Common Share 0.88  0.72 
Investing in dividend-paying stocks, such as Dolby Laboratories is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Dolby Laboratories must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Dolby Laboratories. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Dolby Laboratories's Liquidity

Dolby Laboratories financial leverage refers to using borrowed capital as a funding source to finance Dolby Laboratories ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Dolby Laboratories financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Dolby Laboratories's total debt and its cash.

Correlation Between Dolby and DISH Network

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Dolby Laboratories together with similar or unrelated positions with a negative correlation. For example, you can also add DISH Network to your portfolio. If DISH Network is not perfectly correlated to Dolby Laboratories it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Dolby Laboratories for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between DLB and DISH for more information.

Note

Are you currently holding both Dolby Laboratories and DISH Network in your portfolio? Please note if you are using this as a pair-trade strategy between Dolby Laboratories and DISH Network, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Exercise or conversion by Todd Pendleton of 5191 shares of Dolby Laboratories subject to Rule 16b-3

Legal trades by Dolby Laboratories insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Dolby insider trading alert for exercise of employee stock option (right to buy) by Todd Pendleton, SVP Chief Marketing Officer, on 25th of November 2020. This event was filed by Dolby Laboratories Inc with SEC on 2020-11-25. Statement of changes in beneficial ownership - SEC Form 4. Todd Pendleton currently serves as senior vice president chief marketing officer of Dolby Laboratories [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now take a look at Dolby Laboratories revenue. Based on the latest financial disclosure, Dolby Laboratories reported 1.19 B of revenue. This is 91.91% lower than that of the Communication Services sector and significantly higher than that of the Entertainment industry. The revenue for all United States stocks is 87.39% higher than that of the firm. As for DISH Network we see revenue of 12.81 B, which is much higher than that of the Entertainment

DISH
12.8 B
DLB1.19 Billion8.5
Sector0.00.0
DISH12.81 Billion91.5

Momentum Analysis of Dolby Laboratories suggests possible reversal in November

Maximum drawdown is down to 9.07. It may suggest a possible volatility slip. As of the 24th of October, Dolby Laboratories shows the Coefficient Of Variation of 1949.57, downside deviation of 1.8, and Mean Deviation of 1.2. Dolby Laboratories technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyzed and interpolated nineteen technical drivers for Dolby Laboratories, which can be compared to its rivals. Please confirm Dolby Laboratories treynor ratio, and the relationship between the variance and potential upside to decide if Dolby Laboratories is priced favorably, providing market reflects its regular price of 71.72 per share. Given that Dolby Laboratories has jensen alpha of 0.0595, we urge you to verify Dolby Laboratories's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Take On Dolby Laboratories

Whereas many other companies within the entertainment industry are still a little expensive, even after the recent corrections, Dolby Laboratories may offer a potential longer-term growth to investors. Taking everything into account, as of the 24th of October 2020, our up-to-date 30 days 'Buy-vs-Sell' recommendation on the company is Hold. We believe Dolby Laboratories is fairly valued with very small chance of bankruptcy for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Dolby Laboratories. Please refer to our Terms of Use for any information regarding our disclosure principles.

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