Dolby Laboratories (NYSE:DLB) Reaches New 12-Month Low - Should You Sell?

Key Points

• Dolby Laboratories shares hit a new 52-week low, falling to as low as $55.11 amid a 3.7% decline, even though the stock has generally been viewed favorably by analysts.
• The company beat earnings and revenue expectations in its latest quarterly report, with EPS of $1.37 and revenue of $395.63 million, and it raised guidance for FY 2026.
• Despite the weak stock price, Wall Street still sees upside: the consensus rating is “Moderate Buy” with an average price target of $90.75, well above current levels.

Dolby Laboratories (NYSE:DLB - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $55.11 and last traded at $55.5180, with a volume of 572340 shares. The stock had previously closed at $57.59.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Weiss Ratings reissued a "hold (c-)" rating on shares of Dolby Laboratories in a research report on Friday, March 27th. Wall Street Zen downgraded Dolby Laboratories from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st. Rosenblatt Securities reaffirmed a "buy" rating and issued a $85.00 target price on shares of Dolby Laboratories in a report on Friday, January 30th. Finally, Barrington Research reaffirmed an "outperform" rating and issued a $90.00 target price on shares of Dolby Laboratories in a report on Monday, April 27th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $90.75.

Dolby Laboratories Trading Down 3.7%

The company has a market capitalization of $5.25 billion, a P/E ratio of 21.92 and a beta of 0.86. The stock has a 50 day moving average price of $61.96 and a 200 day moving average price of $64.11.

Dolby Laboratories (NYSE:DLB - Get Free Report) last announced its earnings results on Thursday, April 30th. The electronics maker reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.06. The business had revenue of $395.63 million during the quarter, compared to analyst estimates of $385.80 million. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.Dolby Laboratories's revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period last year, the company earned $1.34 EPS. 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. On average, research analysts predict that Dolby Laboratories will post 3.22 EPS for the current year.

Dolby Laboratories Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 20th. Investors of record on Tuesday, May 12th will be given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend is Tuesday, May 12th. Dolby Laboratories's dividend payout ratio (DPR) is currently 56.92%.

Insider Buying and Selling

In related news, SVP Shriram Revankar sold 3,000 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was 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 directly owned 83,218 shares of the company's stock, valued at $5,504,038.52. This trade represents a 3.48% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP John D. Couling sold 7,666 shares of the stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $57.55, for a total value of $441,178.30. Following the sale, the senior vice president owned 118,353 shares of the company's stock, valued at approximately $6,811,215.15. The trade was a 6.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 18,021 shares of company stock valued at $1,090,741 in the last three months. Insiders own 37.93% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in DLB. Royal Bank of Canada grew its position in Dolby Laboratories by 3.5% in the first quarter. Royal Bank of Canada now owns 68,367 shares of the electronics maker's stock worth $5,491,000 after acquiring an additional 2,298 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in Dolby Laboratories by 218.8% in the first quarter. Goldman Sachs Group Inc. now owns 249,574 shares of the electronics maker's stock worth $20,043,000 after purchasing an additional 171,288 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Dolby Laboratories by 5.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 238,216 shares of the electronics maker's stock worth $19,131,000 after purchasing an additional 12,598 shares during the last quarter. Focus Partners Wealth bought a new stake in Dolby Laboratories in the first quarter worth $390,000. Finally, EverSource Wealth Advisors LLC lifted its stake in Dolby Laboratories by 273.3% in the second quarter. EverSource Wealth Advisors LLC now owns 2,598 shares of the electronics maker's stock worth $193,000 after purchasing an additional 1,902 shares during the last quarter. 58.56% of the stock is currently owned by hedge funds and other institutional investors.

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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