Shares in DreamWorks Animation SKG Inc. were down more than 5 percent in early trading Wednesday after Pali Capital Inc. cut its rating on the stock.

Analyst Richard Greenfield lowered his rating to “neutral,” from “buy” saying he was concerned that lower DVD sales of “Shrek the Third” and the company’s new release of “The Bee Movie” would hurt revenue projections for the coming year.

Greenfield said the company may not sell as many DVDs of the latest “Shrek” movie in the fourth quarter because of a high number of competing titles being released during the same period.

Shares in the Glendale-based studio fell $1.87 to $32.86 in afternoon trading Wednesday on the New York Stock Exchange.