Dolby Laboratories (NYSE:DLB) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Dolby Laboratories has received a consensus rating of “Moderate Buy”, with two analysts recommending a hold and three issuing buy ratings.
• The company's stock has a current average 12-month target price of $95.75, with recent institutional investments increasing in the fourth quarter.
• Dolby recently declared a quarterly dividend of $0.33, representing an annualized yield of 1.8% and a payout ratio of 48.35%.

Shares of Dolby Laboratories (NYSE:DLB - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the five research firms that are presently covering the firm, MarketBeat reports. Two research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average twelve-month target price among brokers that have issued ratings on the stock in the last year is $95.75.

Several brokerages have commented on DLB. Robert W. Baird began coverage on Dolby Laboratories in a report on Friday, September 5th. They issued a "neutral" rating and a $74.00 price objective on the stock. Wall Street Zen raised shares of Dolby Laboratories from a "hold" rating to a "buy" rating in a research note on Saturday, August 30th. Rosenblatt Securities reissued a "buy" rating and issued a $95.00 price target on shares of Dolby Laboratories in a report on Friday, August 1st. Tigress Financial increased their price objective on shares of Dolby Laboratories from $112.00 to $114.00 and gave the company a "buy" rating in a report on Friday, August 15th. Finally, Baird R W upgraded shares of Dolby Laboratories to a "hold" rating in a research report on Friday, September 5th.

Dolby Laboratories Stock Up 1.7%

Shares of DLB stock traded up $1.23 on Friday, hitting $72.17. The company had a trading volume of 395,078 shares, compared to its average volume of 432,830. Dolby Laboratories has a twelve month low of $68.24 and a twelve month high of $89.66. The firm has a market cap of $6.92 billion, a P/E ratio of 26.44 and a beta of 0.93. The company has a 50-day moving average price of $73.88 and a 200-day moving average price of $75.66.

Dolby Laboratories (NYSE:DLB - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The electronics maker reported $0.78 earnings per share for the quarter, beating the consensus estimate of $0.72 by $0.06. Dolby Laboratories had a return on equity of 11.52% and a net margin of 19.62%.The company had revenue of $315.55 million during the quarter, compared to analysts' expectations of $305.23 million. During the same period last year, the business earned $0.71 earnings per share. Dolby Laboratories's quarterly revenue was up 9.2% on a year-over-year basis. Dolby Laboratories has set its FY 2025 guidance at 3.880-4.030 EPS. Q4 2025 guidance at 0.610-0.760 EPS. Equities research analysts expect that Dolby Laboratories will post 2.94 EPS for the current year.

Dolby Laboratories Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Tuesday, August 12th were paid a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 1.8%. The ex-dividend date was Tuesday, August 12th. Dolby Laboratories's payout ratio is 48.35%.

Insider Buying and Selling

In related news, SVP Shriram Revankar sold 7,000 shares of the stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $74.92, for a total value of $524,440.00. Following the completion of the transaction, the senior vice president directly owned 70,435 shares of the company's stock, valued at approximately $5,276,990.20. This represents a 9.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Kevin J. Yeaman sold 39,875 shares of the firm's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $74.82, for a total value of $2,983,447.50. Following the completion of the transaction, the chief executive officer owned 114,725 shares in the company, valued at $8,583,724.50. The trade was a 25.79% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 99,366 shares of company stock valued at $7,352,963 in the last three months. Insiders own 38.39% of the company's stock.

Institutional Investors Weigh In On Dolby Laboratories

Hedge funds have recently modified their holdings of the business. Alpine Bank Wealth Management purchased a new stake in shares of Dolby Laboratories in the first quarter valued at about $25,000. Cheviot Value Management LLC acquired a new position in Dolby Laboratories in the 1st quarter valued at about $27,000. MAI Capital Management grew its stake in shares of Dolby Laboratories by 87.1% in the 1st quarter. MAI Capital Management now owns 348 shares of the electronics maker's stock valued at $28,000 after buying an additional 162 shares during the period. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Dolby Laboratories in the 1st quarter valued at approximately $29,000. Finally, Allworth Financial LP increased its holdings in shares of Dolby Laboratories by 590.4% during the 2nd quarter. Allworth Financial LP now owns 504 shares of the electronics maker's stock worth $37,000 after buying an additional 431 shares during the last quarter. 58.56% of the stock is currently owned by institutional investors and hedge funds.

Dolby Laboratories Company Profile

Dolby Laboratories, Inc creates audio and imaging technologies that transform entertainment at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices.