Share Repurchase Plan Approved by Dolby Laboratories (NYSE:DLB)

Dolby Laboratories (NYSE:DLB) announced that its Board of Directors has authorized a share buyback program on Thursday, July 30th, RTT News reports. The company plans to buyback $350.00 million in outstanding shares. This buyback authorization allows the electronics maker to reacquire up to 7% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

Several equities analysts recently commented on the stock. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Wednesday, June 24th. Barrington Research reissued an “outperform” rating and set a $90.00 target price on shares of Dolby Laboratories in a research report on Monday, June 15th. Rosenblatt Securities reissued a “buy” rating and set a $85.00 target price on shares of Dolby Laboratories in a research report on Friday. Finally, Wall Street Zen lowered shares of Dolby Laboratories from a “buy” rating to a “hold” rating in a research note on Saturday. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $90.75.

Dolby Laboratories Stock Performance

Dolby Laboratories stock opened at $58.78 on Friday. The business’s 50-day simple moving average is $52.29 and its two-hundred day simple moving average is $58.58. The company has a market cap of $5.56 billion, a PE ratio of 25.01 and a beta of 0.81. Dolby Laboratories has a fifty-two week low of $48.26 and a fifty-two week high of $75.80.

Dolby Laboratories (NYSE:DLB) last announced its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, beating analysts’ consensus estimates of $0.67 by $0.02. Dolby Laboratories had a return on equity of 11.06% and a net margin of 16.70%.The business had revenue of $305.00 million for the quarter, compared to analyst estimates of $311.96 million. During the same period in the prior year, the company earned $0.78 earnings per share. The company’s revenue was down 3.3% on a year-over-year basis. Dolby Laboratories has set its FY 2026 guidance at 4.250-4.400 EPS and its Q4 2026 guidance at 1.130-1.280 EPS. As a group, analysts predict that Dolby Laboratories will post 3.21 EPS for the current fiscal year.

Dolby Laboratories Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th will be issued a $0.36 dividend. This represents a $1.44 annualized dividend and a yield of 2.4%. The ex-dividend date is Tuesday, August 11th. Dolby Laboratories’s dividend payout ratio is 61.28%.

More Dolby Laboratories News

Here are the key news stories impacting Dolby Laboratories this week:

• Positive Sentiment: Adjusted earnings beat expectations: Dolby reported fiscal third-quarter adjusted EPS of $0.69, above the $0.67 consensus estimate. Lower operating expenses helped offset weaker revenue. Dolby’s Q3 Earnings Beat Estimates on Lower Operating Expenses
• Positive Sentiment: Upbeat forward outlook: Fiscal fourth-quarter revenue guidance of $362 million to $392 million exceeded the roughly $351 million analyst estimate, while full-year EPS guidance of $4.25 to $4.40 topped the $4.10 consensus. Management cited momentum in video licensing, automotive applications, and new device categories. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Positive Sentiment: $350 million stock-repurchase authorization: Dolby’s board approved a plan to repurchase up to 7% of outstanding shares, signaling management’s view that the stock may be undervalued and potentially supporting per-share results. Dolby Laboratories Share Repurchase Plan
• Positive Sentiment: Dividend and analyst support: Dolby declared a quarterly dividend of $0.36 per share, representing an approximate 2.5% annualized yield. Rosenblatt Securities reaffirmed its Buy rating and set an $85 price target, well above the recent trading level. Dolby Laboratories Dividend Signals Confidence
• Neutral Sentiment: Cash generation remained strong: Operating cash flow rose to $167.5 million, and Dolby ended the quarter with $669.4 million in cash, providing flexibility for buybacks, dividends, and investment.
• Negative Sentiment: Revenue and reported profitability declined: Third-quarter revenue fell 3.3% year over year to $305 million and missed estimates near $312 million. Reported net income and diluted GAAP EPS also declined from the prior year, reflecting softer device sales and continued pressure in some business areas. Dolby Laboratories Fiscal Q3 Adjusted Earnings, Revenue Fall

Insider Buying and Selling at Dolby Laboratories

In other news, CFO Robert J. Park sold 4,895 shares of the company’s stock in a transaction on Tuesday, May 12th. The shares were sold at an average price of $56.68, for a total value of $277,448.60. Following the sale, the chief financial officer directly owned 81,490 shares of the company’s stock, valued at $4,618,853.20. This represents a 5.67% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CMO Todd Pendleton sold 11,876 shares of the company’s stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $54.55, for a total transaction of $647,835.80. Following the completion of the sale, the chief marketing officer directly owned 41,480 shares in the company, valued at $2,262,734. This trade represents a 22.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 47,458 shares of company stock worth $2,639,537 in the last 90 days. Corporate insiders own 37.93% of the company’s stock.

About Dolby Laboratories

Dolby Laboratories, Inc is a global leader in audio and imaging technologies, specializing in the development, licensing and deployment of solutions that enhance entertainment and communications experiences. The company’s core business revolves around creating advanced audio codecs, noise reduction systems and spatial sound technologies for a wide range of applications, including cinema, broadcast, gaming, streaming and personal devices. Dolby’s licensing model enables consumer electronics manufacturers, content creators and service providers to integrate its technologies into products such as televisions, smartphones, home theater systems and set-top boxes.

Among its flagship innovations are Dolby Atmos, an immersive audio format that delivers three-dimensional soundscapes for theaters and home systems; Dolby Digital and Dolby Digital Plus, widely adopted audio compression formats for broadcast and streaming; and Dolby Vision, a high-dynamic-range imaging technology that expands color, contrast and brightness in displays.