Rosenblatt Securities Reaffirms "Buy" Rating for Dolby Laboratories (NYSE:DLB)

Key Points

• Rosenblatt Securities reaffirmed its “Buy” rating on Dolby Laboratories, maintaining an $85 price target that implies approximately 36% upside from the prior close. Analysts overall assign the stock a “Hold” consensus rating with an average target of $83.
• Dolby’s latest quarter slightly beat EPS expectations at $0.69 versus $0.67, but revenue fell 3.3% year over year to $305 million and missed estimates. The company also authorized a $350 million share-repurchase plan, covering up to 7% of outstanding shares.
• Dolby is pursuing growth beyond its core licensing business, including in-car gaming and live sports streaming, while institutional investors increased their holdings; institutions currently own 58.56% of the stock.

Dolby Laboratories (NYSE:DLB - Get Free Report)'s stock had its "buy" rating reaffirmed by investment analysts at Rosenblatt Securities in a note issued to investors on Friday,Benzinga reports. They presently have a $85.00 price objective on the electronics maker's stock. Rosenblatt Securities' price objective would suggest a potential upside of 36.07% from the company's previous close.

Other research analysts have also recently issued research reports about the company. Barrington Research reaffirmed an "outperform" rating and set a $90.00 target price on shares of Dolby Laboratories in a research report on Monday, June 15th. Wall Street Zen cut Dolby Laboratories from a "buy" rating to a "hold" rating in a research note on Saturday, August 1st. Finally, Weiss Ratings lowered shares of Dolby Laboratories from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, August 13th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $83.00.

Dolby Laboratories Stock Down 3.8%

NYSE:DLB opened at $62.47 on Friday. Dolby Laboratories has a twelve month low of $48.26 and a twelve month high of $73.78. The company has a fifty day moving average of $55.49 and a 200-day moving average of $58.50. The firm has a market capitalization of $5.85 billion, a P/E ratio of 26.58 and a beta of 0.80.

Dolby Laboratories (NYSE:DLB - Get Free Report) last issued its earnings results on Thursday, July 30th. The electronics maker reported $0.69 EPS for the quarter, beating analysts' consensus estimates of $0.67 by $0.02. The business had revenue of $305.00 million during the quarter, compared to analyst estimates of $311.96 million. Dolby Laboratories had a return on equity of 11.08% and a net margin of 16.70%.The firm's revenue was down 3.3% compared to the same quarter last year. During the same period in the previous year, the company posted $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. On average, analysts anticipate that Dolby Laboratories will post 3.23 EPS for the current fiscal year.

Dolby Laboratories announced that its board has initiated a share repurchase plan on Thursday, July 30th that authorizes the company to buyback $350.00 million in outstanding shares. This buyback authorization authorizes the electronics maker to repurchase up to 7% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Insider Transactions at Dolby Laboratories

In other Dolby Laboratories news, CAO Ryan Nicholson sold 1,183 shares of the stock in a transaction that occurred on Tuesday, August 25th. The shares were sold at an average price of $65.28, for a total value of $77,226.24. Following the sale, the chief accounting officer directly owned 34,453 shares in the company, valued at $2,249,091.84. This represents a 3.32% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, SVP Shriram Revankar sold 3,000 shares of the firm's stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $62.71, for a total value of $188,130.00. Following the completion of the sale, the senior vice president directly owned 73,274 shares in the company, valued at approximately $4,595,012.54. The trade was a 3.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 28,888 shares of company stock valued at $1,664,918. 37.93% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Dolby Laboratories

A number of hedge funds and other institutional investors have recently modified their holdings of DLB. Bank of New York Mellon Corp bought a new stake in Dolby Laboratories during the 2nd quarter valued at $253,289,000. California State Teachers Retirement System grew its holdings in shares of Dolby Laboratories by 5,009.3% during the 2nd quarter. California State Teachers Retirement System now owns 3,705,155 shares of the electronics maker's stock worth $194,817,000 after acquiring an additional 3,632,637 shares during the period. State Street Corp grew its position in shares of Dolby Laboratories by 8.7% in the 2nd quarter. State Street Corp now owns 2,261,059 shares of the electronics maker's stock worth $167,906,000 after buying an additional 180,072 shares during the period. First Trust Advisors LP grew its stake in shares of Dolby Laboratories by 19.9% in the 1st quarter. First Trust Advisors LP now owns 2,254,933 shares of the electronics maker's stock worth $135,431,000 after buying an additional 374,405 shares during the last quarter. Finally, Geode Capital Management LLC grew its stake in shares of Dolby Laboratories by 15.6% in the fourth quarter. Geode Capital Management LLC now owns 1,885,246 shares of the electronics maker's stock worth $122,749,000 after acquiring an additional 254,250 shares during the last quarter. Institutional investors own 58.56% of the company's stock.

Key Stories Impacting Dolby Laboratories

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

• Positive Sentiment: New growth opportunities: Dolby is expanding beyond its traditional audio and video licensing operations into in-car gaming and live sports streaming. These markets could broaden its addressable market and create additional long-term licensing revenue. Dolby Laboratories Expands Into In-Car Gaming and Live Sports Streaming
• Positive Sentiment: Small FY2026 earnings upgrade: Zacks Research raised its FY2026 EPS forecast to $3.17 from $3.16, reinforcing expectations for resilient earnings despite Dolby’s recent revenue decline. Zacks Research Has Positive Outlook of DLB FY2026 Earnings

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.

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