Dolby Laboratories (NYSE:DLB) Earns Buy Rating from Rosenblatt Securities

Key Points

• Rosenblatt Securities reiterated its Buy rating on Dolby Laboratories and kept an $85 price target, implying about 62.9% upside from the stock’s current price.
• Dolby’s latest earnings beat expectations, with Q2 EPS of $1.37 versus $1.31 expected and revenue of $395.63 million versus $385.80 million projected. The company also provided FY 2026 EPS guidance of 4.30 to 4.45.
• The stock was down 1.4% to $52.18, near its 52-week low of $51.78. Recent insider selling and mixed analyst views leave the broader consensus at Moderate Buy with a $90.75 average target.

Dolby Laboratories (NYSE:DLB - Get Free Report)'s stock had its "buy" rating reiterated by stock analysts at Rosenblatt Securities in a research report issued to clients and investors on Thursday,Benzinga reports. They currently have a $85.00 price target on the electronics maker's stock. Rosenblatt Securities' target price indicates a potential upside of 62.91% from the company's current price.

A number of other equities analysts have also commented on the stock. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Dolby Laboratories in a research report on Friday, March 27th. Barrington Research reaffirmed an "outperform" rating and set a $90.00 target price on shares of Dolby Laboratories in a research report on Monday, April 27th. Finally, Wall Street Zen raised shares of Dolby Laboratories from a "hold" rating to a "buy" rating in a research report on Saturday, May 30th. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $90.75.

Dolby Laboratories Stock Down 1.4%

Dolby Laboratories stock traded down $0.72 during midday trading on Thursday, reaching $52.18. The stock had a trading volume of 165,458 shares, compared to its average volume of 762,419. The firm has a market cap of $4.94 billion, a price-to-earnings ratio of 20.64 and a beta of 0.81. The company has a fifty day moving average of $58.69 and a 200 day moving average of $62.38. Dolby Laboratories has a 52-week low of $51.78 and a 52-week high of $77.00.

Dolby Laboratories (NYSE:DLB - Get Free Report) last issued its earnings results on Thursday, April 30th. The electronics maker reported $1.37 EPS for the quarter, topping analysts' consensus estimates of $1.31 by $0.06. The business had revenue of $395.63 million for the quarter, compared to analyst estimates of $385.80 million. Dolby Laboratories had a net margin of 17.85% and a return on equity of 11.47%. The company's quarterly revenue was up 7.0% compared to the same quarter last year. During the same period last year, the company posted $1.34 earnings per share. Dolby Laboratories has set its FY 2026 guidance at 4.300-4.450 EPS and its Q3 2026 guidance at 0.560-0.710 EPS. Equities research analysts predict that Dolby Laboratories will post 3.21 EPS for the current year.

Insider Activity

In other Dolby Laboratories news, CFO Robert J. Park sold 4,895 shares of the firm's stock in a transaction that occurred on Tuesday, May 12th. The shares were sold at an average price of $56.68, for a total value of $277,448.60. Following the completion of the sale, the chief financial officer directly owned 81,490 shares in the company, valued at $4,618,853.20. This trade represents a 5.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP John D. Couling sold 7,666 shares of Dolby Laboratories stock in a transaction on Monday, June 1st. The stock was sold at an average price of $55.62, for a total transaction of $426,382.92. Following the sale, the senior vice president owned 118,727 shares of the company's stock, valued at $6,603,595.74. The trade was a 6.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 39,791 shares of company stock valued at $2,231,653 in the last ninety days. 37.93% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Hantz Financial Services Inc. raised its holdings in shares of Dolby Laboratories by 166.7% during the third quarter. Hantz Financial Services Inc. now owns 352 shares of the electronics maker's stock worth $25,000 after purchasing an additional 220 shares during the last quarter. Rothschild Investment LLC raised its holdings in shares of Dolby Laboratories by 4,046.7% during the third quarter. Rothschild Investment LLC now owns 622 shares of the electronics maker's stock worth $45,000 after purchasing an additional 607 shares during the last quarter. Optiver Holding B.V. raised its holdings in shares of Dolby Laboratories by 7,955.6% during the third quarter. Optiver Holding B.V. now owns 725 shares of the electronics maker's stock worth $52,000 after purchasing an additional 716 shares during the last quarter. 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 purchasing an additional 192 shares during the last quarter. Finally, Aquatic Capital Management LLC purchased a new position in shares of Dolby Laboratories during the third quarter worth $56,000. Hedge funds and other institutional investors 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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