Dolby Laboratories (NYSE:DLB) Hits New 52-Week Low - Should You Sell?

Key Points

• Dolby Laboratories' shares hit a new 52-week low, trading at $68.24, down from a previous close of $70.09.
• Despite the recent decline, analysts maintain a consensus rating of "Moderate Buy" with an average price target of $95.75.
• The company reported a 9.2% increase in quarterly revenue year-over-year and topped earnings estimates, leading to a positive earnings per share forecast for FY 2025.

Shares of Dolby Laboratories (NYSE:DLB - Get Free Report) reached a new 52-week low on Friday . The stock traded as low as $68.24 and last traded at $68.41, with a volume of 91893 shares trading hands. The stock had previously closed at $70.09.

Analyst Ratings Changes

Several analysts have weighed in on DLB shares. Rosenblatt Securities reiterated a "buy" rating and set a $95.00 target price on shares of Dolby Laboratories in a research note on Friday, August 1st. Wall Street Zen upgraded shares of Dolby Laboratories from a "hold" rating to a "buy" rating in a research report on Saturday, August 30th. Baird R W upgraded shares of Dolby Laboratories to a "hold" rating in a research report on Friday, September 5th. Barrington Research restated an "outperform" rating and set a $100.00 price target on shares of Dolby Laboratories in a research report on Friday, September 12th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Dolby Laboratories in a research report on Wednesday. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $95.75.

Dolby Laboratories Price Performance

The firm has a market cap of $6.54 billion, a price-to-earnings ratio of 24.98 and a beta of 0.92. The firm's fifty day moving average is $72.25 and its two-hundred day moving average is $74.22.

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

Dolby Laboratories Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Tuesday, August 12th were issued a $0.33 dividend. This represents a $1.32 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend was Tuesday, August 12th. Dolby Laboratories's dividend payout ratio is presently 48.35%.

Insider Transactions at Dolby Laboratories

In other Dolby Laboratories news, CEO Kevin J. Yeaman sold 25,000 shares of the company's stock in a transaction dated Tuesday, September 16th. The shares were sold at an average price of $71.66, for a total transaction of $1,791,500.00. Following the completion of the sale, the chief executive officer directly owned 114,725 shares of the company's stock, valued at approximately $8,221,193.50. This represents a 17.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Shriram Revankar sold 7,000 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $74.92, for a total transaction of $524,440.00. Following the sale, the senior vice president directly owned 70,435 shares of the company's stock, valued at $5,276,990.20. This represents a 9.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 99,366 shares of company stock valued at $7,293,963 over the last ninety days. Insiders own 38.39% of the company's stock.

Institutional Trading of Dolby Laboratories

A number of hedge funds have recently bought and sold shares of the company. Wealth Enhancement Advisory Services LLC increased its holdings in shares of Dolby Laboratories by 6.2% in the 4th quarter. Wealth Enhancement Advisory Services LLC now owns 5,657 shares of the electronics maker's stock valued at $442,000 after purchasing an additional 331 shares during the period. UMB Bank n.a. increased its holdings in shares of Dolby Laboratories by 170.5% in the 1st quarter. UMB Bank n.a. now owns 698 shares of the electronics maker's stock valued at $56,000 after purchasing an additional 440 shares during the period. Park Avenue Securities LLC acquired a new position in shares of Dolby Laboratories in the 1st quarter valued at about $222,000. Farther Finance Advisors LLC increased its holdings in shares of Dolby Laboratories by 239.3% in the 1st quarter. Farther Finance Advisors LLC now owns 743 shares of the electronics maker's stock valued at $60,000 after purchasing an additional 524 shares during the period. Finally, Pallas Capital Advisors LLC acquired a new position in shares of Dolby Laboratories in the 1st quarter valued at about $462,000. 58.56% of the stock is owned by hedge funds and other institutional investors.

About Dolby Laboratories

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.

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