Dolby Laboratories (NYSE:DLB) Given Consensus Rating of “Moderate Buy” by Analysts

Dolby Laboratories (NYSE:DLB) has been given a consensus rating of “Moderate Buy” by the five analysts that are currently covering the stock, Marketbeat reports. Two analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $90.75.

DLB has been the topic of several research analyst reports. Barrington Research reiterated an “outperform” rating and set a $90.00 price objective on shares of Dolby Laboratories in a research report on Monday, June 15th. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Wednesday, June 24th. Wall Street Zen downgraded Dolby Laboratories from a “buy” rating to a “hold” rating in a report on Saturday. Finally, Rosenblatt Securities reissued a “buy” rating and set a $85.00 price target on shares of Dolby Laboratories in a research report on Friday.

Dolby Laboratories Trading Up 1.5%

DLB stock opened at $59.70 on Tuesday. Dolby Laboratories has a one year low of $48.26 and a one year high of $75.66. The firm has a market capitalization of $5.65 billion, a PE ratio of 25.40 and a beta of 0.81. The firm has a 50-day moving average of $52.39 and a two-hundred day moving average of $58.51.

Dolby Laboratories (NYSE:DLB) last released its earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, topping the consensus estimate of $0.67 by $0.02. Dolby Laboratories had a net margin of 16.70% and a return on equity of 11.08%. The business had revenue of $305.00 million for the quarter, compared to the consensus estimate of $311.96 million. The firm’s quarterly revenue was down 3.3% compared to the same quarter last year. During the same period last year, the firm posted $0.78 earnings per share. 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. On average, equities research analysts anticipate that Dolby Laboratories will post 3.21 earnings per share for the current year.

Dolby Laboratories Dividend Announcement

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

Dolby Laboratories declared that its Board of Directors has authorized a share repurchase plan on Thursday, July 30th that allows the company to repurchase $350.00 million in outstanding shares. This repurchase authorization allows the electronics maker to reacquire up to 7% of its stock through open market purchases. Stock repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity at Dolby Laboratories

In other news, SVP Shriram Revankar sold 3,000 shares of the stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $54.90, for a total value of $164,700.00. Following the completion of the sale, the senior vice president directly owned 80,603 shares of the company’s stock, valued at $4,425,104.70. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CMO Todd Pendleton sold 11,876 shares of the business’s stock in a transaction that occurred 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 transaction, the chief marketing officer directly owned 41,480 shares in the company, valued at $2,262,734. The trade was a 22.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 35,104 shares of company stock valued at $1,924,252 over the last ninety days. 37.93% of the stock is owned by company insiders.

Hedge Funds Weigh In On Dolby Laboratories

Several institutional investors and hedge funds have recently modified their holdings of DLB. Fifth Third Bancorp raised its holdings in shares of Dolby Laboratories by 34.7% during the fourth quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker’s stock worth $48,000 after acquiring an additional 192 shares in the last quarter. Aquatic Capital Management LLC acquired a new position in Dolby Laboratories in the 3rd quarter worth about $56,000. iSAM Funds UK Ltd acquired a new position in Dolby Laboratories in the 3rd quarter worth about $68,000. Allworth Financial LP raised its stake in shares of Dolby Laboratories by 99.6% during the 3rd quarter. Allworth Financial LP now owns 1,006 shares of the electronics maker’s stock worth $73,000 after purchasing an additional 502 shares in the last quarter. Finally, Quarry LP raised its stake in shares of Dolby Laboratories by 1,486.7% during the 4th quarter. Quarry LP now owns 1,190 shares of the electronics maker’s stock worth $76,000 after purchasing an additional 1,115 shares in the last quarter. 58.56% of the stock is currently owned by hedge funds and other institutional investors.

Dolby Laboratories Company Profile

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.