Dolby Laboratories (NYSE:DLB) Hits New 1-Year Low on Analyst Downgrade

Shares of Dolby Laboratories (NYSE:DLB) reached a new 52-week low during mid-day trading on Tuesday after Barrington Research lowered their price target on the stock from $95.00 to $90.00. Barrington Research currently has an outperform rating on the stock. Dolby Laboratories traded as low as $60.93 and last traded at $60.8550, with a volume of 40340 shares traded. The stock had previously closed at $62.12.

Several other research firms also recently issued reports on DLB. Weiss Ratings reiterated a “hold (c-)” rating on shares of Dolby Laboratories in a report on Monday, December 29th. Rosenblatt Securities reiterated a “buy” rating and issued a $85.00 price target on shares of Dolby Laboratories in a research note on Thursday, January 22nd. Finally, Wall Street Zen raised shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a research report on Monday, January 5th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $90.75.

Insider Activity at Dolby Laboratories

In other Dolby Laboratories news, EVP Mark Andrew Sherman sold 2,491 shares of the company’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $67.26, for a total value of $167,544.66. Following the completion of the transaction, the executive vice president owned 70,563 shares in the company, valued at $4,746,067.38. This represents a 3.41% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Shriram Revankar sold 3,000 shares of the firm’s stock in a transaction dated Friday, November 21st. The stock was sold at an average price of $65.55, for a total value of $196,650.00. Following the transaction, the senior vice president directly owned 67,435 shares in the company, valued at approximately $4,420,364.25. The trade was a 4.26% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 137,120 shares of company stock worth $9,184,809 over the last 90 days. 37.93% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Norges Bank purchased a new stake in Dolby Laboratories in the second quarter valued at approximately $55,030,000. AQR Capital Management LLC increased its holdings in shares of Dolby Laboratories by 51.8% in the 2nd quarter. AQR Capital Management LLC now owns 1,736,260 shares of the electronics maker’s stock valued at $128,935,000 after acquiring an additional 592,282 shares during the period. First Trust Advisors LP raised its position in Dolby Laboratories by 35.2% in the 2nd quarter. First Trust Advisors LP now owns 1,237,443 shares of the electronics maker’s stock valued at $91,893,000 after purchasing an additional 322,063 shares during the last quarter. Pacer Advisors Inc. raised its position in Dolby Laboratories by 98.2% in the 3rd quarter. Pacer Advisors Inc. now owns 443,897 shares of the electronics maker’s stock valued at $32,125,000 after purchasing an additional 219,901 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in Dolby Laboratories by 2.7% during the 3rd quarter. Vanguard Group Inc. now owns 7,756,924 shares of the electronics maker’s stock worth $561,369,000 after purchasing an additional 203,411 shares during the period. Hedge funds and other institutional investors own 58.56% of the company’s stock.

Dolby Laboratories Stock Performance

The company has a market capitalization of $5.81 billion, a PE ratio of 23.16 and a beta of 0.88. The company’s 50-day simple moving average is $65.35 and its 200-day simple moving average is $69.15.

Dolby Laboratories (NYSE:DLB) last announced its earnings results on Tuesday, November 18th. The electronics maker reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.29. The business had revenue of $307.02 million during the quarter, compared to the consensus estimate of $305.76 million. Dolby Laboratories had a net margin of 18.90% and a return on equity of 11.99%. The business’s quarterly revenue was up .7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.61 earnings per share. Dolby Laboratories has set its FY 2026 guidance at 4.190-4.340 EPS and its Q1 2026 guidance at 0.790-0.940 EPS. Analysts expect that Dolby Laboratories will post 2.94 EPS for the current year.

Dolby Laboratories Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Tuesday, December 2nd were paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. This is a boost from Dolby Laboratories’s previous quarterly dividend of $0.33. The ex-dividend date was Tuesday, December 2nd. Dolby Laboratories’s dividend payout ratio (DPR) is currently 54.75%.

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.