Senior VP & Chief Marketing Officer Of Dolby Laboratories Sold 100% Of Their Shares

We wouldn't blame Dolby Laboratories, Inc. (NYSE:DLB) shareholders if they were a little worried about the fact that Todd Pendleton, the Senior VP & Chief Marketing Officer recently netted about US$907k selling shares at an average price of US$83.75. That diminished their holding by a very significant 100%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for Dolby Laboratories

Dolby Laboratories Insider Transactions Over The Last Year

In fact, the recent sale by Senior VP & Chief Marketing Officer Todd Pendleton was not their only sale of Dolby Laboratories shares this year. They previously made an even bigger sale of -US$1.0m worth of shares at a price of US$81.69 per share. So what is clear is that an insider saw fit to sell at around the current price of US$81.57. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Dolby Laboratories insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Dolby Laboratories Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.6% of Dolby Laboratories shares, worth about US$47m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Dolby Laboratories Tell Us?

Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Dolby Laboratories makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 2 warning signs for Dolby Laboratories (1 doesn't sit too well with us) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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