Dolby Laboratories' (DLB) Outperform Rating Reiterated at Barrington Research

Key Points

• Barrington Research reiterated an Outperform rating on Dolby with a $90 price target — roughly a 40% upside from current levels — and the street consensus is a Moderate Buy (three Buys, two Holds) with an average target of $90.75.
• Dolby beat quarterly EPS estimates ($1.06 vs. $0.99) and topped revenue forecasts, though revenue was down 2.8% year‑over‑year; the stock trades around $64 with a $6.12B market cap and a P/E of about 25.8.

Dolby Laboratories (NYSE:DLB - Get Free Report)'s stock had its "outperform" rating reaffirmed by stock analysts at Barrington Research in a research report issued to clients and investors on Monday,Benzinga reports. They currently have a $90.00 price objective on the electronics maker's stock. Barrington Research's target price would suggest a potential upside of 40.44% from the company's current price.

Other equities research analysts have also recently issued reports about the stock. Weiss Ratings reissued a "hold (c-)" rating on shares of Dolby Laboratories in a research note on Friday, March 27th. Rosenblatt Securities reissued a "buy" rating and issued a $85.00 price objective on shares of Dolby Laboratories in a research note on Friday, January 30th. Finally, Wall Street Zen cut shares of Dolby Laboratories from a "buy" rating to a "hold" rating in a research note on Saturday, January 31st. Three investment analysts have rated the stock with a Buy rating and two have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $90.75.

Dolby Laboratories Stock Up 0.0%

Shares of DLB opened at $64.08 on Monday. The company has a 50-day simple moving average of $62.67 and a 200-day simple moving average of $64.65. The company has a market capitalization of $6.12 billion, a PE ratio of 25.84 and a beta of 0.86. Dolby Laboratories has a 52-week low of $57.62 and a 52-week high of $78.28.

Dolby Laboratories (NYSE:DLB - Get Free Report) last announced its quarterly earnings results on Thursday, January 29th. The electronics maker reported $1.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.99 by $0.07. The business had revenue of $346.71 million during the quarter, compared to the consensus estimate of $341.26 million. Dolby Laboratories had a net margin of 17.97% and a return on equity of 11.50%. The business's revenue was down 2.8% compared to the same quarter last year. During the same quarter last year, the firm posted $1.14 EPS. On average, research analysts anticipate that Dolby Laboratories will post 3.18 EPS for the current year.

Insider Transactions at Dolby Laboratories

In other Dolby Laboratories news, CAO Ryan Nicholson sold 2,667 shares of the company's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $66.38, for a total value of $177,035.46. Following the transaction, the chief accounting officer directly owned 36,956 shares in the company, valued at approximately $2,453,139.28. This represents a 6.73% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Shriram Revankar sold 3,000 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $66.14, for a total transaction of $198,420.00. Following the completion of the transaction, the senior vice president owned 83,218 shares in the company, valued at approximately $5,504,038.52. This trade represents a 3.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 37.93% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. First Horizon Corp acquired a new position in shares of Dolby Laboratories during the 3rd quarter valued at about $25,000. Hantz Financial Services Inc. increased its stake in shares of Dolby Laboratories by 166.7% during the 3rd quarter. Hantz Financial Services Inc. now owns 352 shares of the electronics maker's stock valued at $25,000 after acquiring an additional 220 shares during the last quarter. Mather Group LLC. acquired a new position in shares of Dolby Laboratories during the 3rd quarter valued at about $38,000. Rothschild Investment LLC increased its stake in shares of Dolby Laboratories by 4,046.7% during the 3rd quarter. Rothschild Investment LLC now owns 622 shares of the electronics maker's stock valued at $45,000 after acquiring an additional 607 shares during the last quarter. Finally, Fifth Third Bancorp increased its stake in shares of Dolby Laboratories by 34.7% during the 4th quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker's stock valued at $48,000 after acquiring an additional 192 shares during the last quarter. Institutional investors and hedge funds own 58.56% of the company's stock.

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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