Should Dolby Laboratories, Inc. (NYSE:DLB) investors track the following data?
In the financial world, there are tons of gauges shareholders can use to monitor publicly traded companies. A duo of the most underrated are hedge fund and insider trading movement. At Insider Monkey, our studies have shown that, historically, those who follow the top picks of the elite money managers can trounce the market by a significant amount (see just how much).
Equally as key, optimistic insider trading activity is another way to analyze the world of equities. Just as you’d expect, there are a variety of reasons for a bullish insider to downsize shares of his or her company, but only one, very clear reason why they would behave bullishly. Many academic studies have demonstrated the useful potential of this tactic if you understand where to look (learn more here).
Now that that’s out of the way, let’s examine the newest info surrounding Dolby Laboratories, Inc. (NYSE:DLB).
Hedge fund activity in Dolby Laboratories, Inc. (NYSE:DLB)
In preparation for the third quarter, a total of 11 of the hedge funds we track held long positions in this stock, a change of 10% from the first quarter. With hedgies’ capital changing hands, there exists a few notable hedge fund managers who were boosting their stakes meaningfully.
When using filings from the hedgies we track, Royce & Associates, managed by Chuck Royce, holds the largest position in Dolby Laboratories, Inc. (NYSE:DLB). Royce & Associates has a $49 million position in the stock, comprising 0.2% of its 13F portfolio. Coming in second is Renaissance Technologies, managed by Jim Simons, which held a $36.8 million position; 0.1% of its 13F portfolio is allocated to the stock. Other hedge funds with similar optimism include Cliff Asness’s AQR Capital Management, Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
As aggregate interest spiked, particular hedge funds were leading the bulls’ herd. Royce & Associates, managed by Chuck Royce, assembled the most valuable position in Dolby Laboratories, Inc. (NYSE:DLB). Royce & Associates had 49 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $36.8 million investment in the stock during the quarter. The following funds were also among the new DLB investors: Cliff Asness’s AQR Capital Management, Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.
How are insiders trading Dolby Laboratories, Inc. (NYSE:DLB)?
Insider buying is at its handiest when the company we’re looking at has experienced transactions within the past 180 days. Over the last half-year time frame, Dolby Laboratories, Inc. (NYSE:DLB) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll also examine the relationship between both of these indicators in other stocks similar to Dolby Laboratories, Inc. (NYSE:DLB). These stocks are Amphenol Corporation (NYSE:APH), LG Display Co Ltd. (ADR) (NYSE:LPL), AVX Corporation (NYSE:AVX), Molex Incorporated (NASDAQ:MOLX), and Acuity Brands, Inc. (NYSE:AYI). This group of stocks are the members of the diversified electronics industry and their market caps are similar to DLB’s market cap.
| Company Name | # of Hedge Funds | # of Insiders Buying | # of Insiders Selling |
| Amphenol Corporation (NYSE:APH) | 21 | 0 | 0 |
| LG Display Co Ltd. (ADR) (NYSE:LPL) | 8 | 0 | 0 |
| AVX Corporation (NYSE:AVX) | 14 | 0 | 0 |
| Molex Incorporated (NASDAQ:MOLX) | 12 | 0 | 0 |
| Acuity Brands, Inc. (NYSE:AYI) | 19 | 0 | 0 |
Using the results explained by the previously mentioned studies, regular investors must always watch hedge fund and insider trading sentiment, and Dolby Laboratories, Inc. (NYSE:DLB) is an important part of this process.
