Dolby Laboratories (NYSE:DLB) Stock Rating Cut to Strong Sell at Zacks Research

Key Points

• Zacks Research downgraded Dolby Laboratories from “hold” to “strong sell,” while the broader analyst consensus remains “Hold” with a $87.50 target price.
• Dolby shares traded near $60, with a market capitalization of approximately $5.62 billion. The company’s latest quarter beat EPS estimates, but revenue fell 3.3% year over year and missed expectations.
• The board authorized a $350 million share-repurchase program, allowing buybacks of up to 7% of outstanding shares; meanwhile, insiders have sold 28,889 shares worth about $1.75 million over the past three months.

Dolby Laboratories (NYSE:DLB - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research report issued to clients and investors on Thursday, Zacks reports.

A number of other equities analysts have also recently issued reports on DLB. Wall Street Zen cut Dolby Laboratories from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Rosenblatt Securities reaffirmed a "buy" rating and issued a $85.00 price objective on shares of Dolby Laboratories in a research note on Friday, August 28th. Finally, Weiss Ratings raised Dolby Laboratories from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Wednesday, September 9th. Two analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Dolby Laboratories currently has an average rating of "Hold" and a consensus target price of $87.50.

Dolby Laboratories Stock Performance

Shares of Dolby Laboratories stock traded down $0.83 during midday trading on Thursday, hitting $60.00. 512,709 shares of the company traded hands, compared to its average volume of 841,600. The stock has a market cap of $5.62 billion, a price-to-earnings ratio of 25.53 and a beta of 0.78. The firm's fifty day moving average price is $60.72 and its 200-day moving average price is $57.58. Dolby Laboratories has a 12 month low of $48.26 and a 12 month high of $69.95.

Dolby Laboratories (NYSE:DLB - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.67 by $0.02. The business had revenue of $305.00 million during the quarter, compared to analysts' expectations of $311.96 million. Dolby Laboratories had a net margin of 16.70% and a return on equity of 11.08%. The firm's quarterly revenue was down 3.3% compared to the same quarter last year. During the same period in the prior year, the company earned $0.78 EPS. 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. Equities research analysts forecast that Dolby Laboratories will post 3.23 earnings per share for the current year.

Dolby Laboratories declared that its board has initiated a stock repurchase plan on Thursday, July 30th that permits the company to buy back $350.00 million in outstanding shares. This repurchase authorization permits the electronics maker to buy up to 7% of its shares through open market purchases. Stock repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling at Dolby Laboratories

In other Dolby Laboratories news, SVP John Couling sold 7,667 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $60.00, for a total value of $460,020.00. Following the transaction, the senior vice president directly owned 118,727 shares of the company's stock, valued at approximately $7,123,620. The trade was a 6.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Shriram Revankar sold 3,000 shares of the firm's stock in a transaction on Friday, August 14th. The stock was sold at an average price of $62.71, for a total transaction of $188,130.00. Following the completion of the sale, the senior vice president owned 73,274 shares of the company's stock, valued at $4,595,012.54. The trade was a 3.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 28,889 shares of company stock valued at $1,749,388. 37.93% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Mitchell & Pahl Private Wealth LLC increased its holdings in shares of Dolby Laboratories by 8.3% during the third quarter. Mitchell & Pahl Private Wealth LLC now owns 18,393 shares of the electronics maker's stock valued at $1,081,000 after acquiring an additional 1,416 shares in the last quarter. CX Institutional lifted its holdings in shares of Dolby Laboratories by 2.7% in the 3rd quarter. CX Institutional now owns 13,074 shares of the electronics maker's stock worth $768,000 after purchasing an additional 347 shares in the last quarter. Tidal Investments LLC lifted its holdings in shares of Dolby Laboratories by 87.7% in the 2nd quarter. Tidal Investments LLC now owns 7,630 shares of the electronics maker's stock worth $401,000 after purchasing an additional 3,565 shares in the last quarter. Nykredit A S bought a new position in shares of Dolby Laboratories in the second quarter valued at $101,000. Finally, Corient Private Wealth LP acquired a new stake in shares of Dolby Laboratories in the 2nd quarter worth about $234,000. 58.56% of the stock is owned by institutional investors and hedge funds.

Dolby Laboratories Company Profile

Dolby Laboratories, Inc develops audio and imaging technologies for entertainment and communications. The company's products and intellectual property are used in cinemas, televisions, mobile devices, personal computers, streaming platforms, gaming systems and automobiles to improve sound quality, picture quality and overall viewing experiences.

Dolby's technology portfolio includes Dolby Atmos immersive audio, Dolby Vision high-dynamic-range imaging, and Dolby Digital and Dolby AC-4 audio formats.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.