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

Key Points

• Analysts give Dolby a consensus rating of "Moderate Buy" (3 buys, 2 holds) with an average 12‑month price target of $90.75.
• Dolby recently beat quarterly estimates—EPS $1.06 vs. $0.99 and revenue $346.7M vs. $341.3M—but revenue was down 2.8% year‑over‑year and the stock trades around $64.63 (market cap ~$6.17B).
• The company pays a quarterly dividend of $0.36 ($1.44 annual, ~2.2% yield) while insiders have recently sold shares (insiders own 37.93% and institutions own 58.56%).

Dolby Laboratories (NYSE:DLB - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the five brokerages that are covering the firm, MarketBeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $90.75.

Several research firms recently weighed in on DLB. 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 target price on shares of Dolby Laboratories in a research note on Friday, January 30th. Barrington Research reduced their price objective on shares of Dolby Laboratories from $95.00 to $90.00 and set an "outperform" rating for the company in a research report on Monday, January 26th. Finally, Wall Street Zen cut shares of Dolby Laboratories from a "buy" rating to a "hold" rating in a research report on Saturday, January 31st.

Dolby Laboratories Stock Performance

Shares of DLB stock opened at $64.63 on Friday. The company has a market capitalization of $6.17 billion, a P/E ratio of 26.06 and a beta of 0.86. The company's 50 day moving average price is $62.97 and its two-hundred day moving average price is $64.94. 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 posted its quarterly earnings data 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. Dolby Laboratories had a net margin of 17.97% and a return on equity of 11.50%. The company had revenue of $346.71 million for the quarter, compared to the consensus estimate of $341.26 million. During the same period last year, the company earned $1.14 earnings per share. The firm's revenue was down 2.8% compared to the same quarter last year. Analysts forecast that Dolby Laboratories will post 2.94 earnings per share for the current year.

Dolby Laboratories Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, February 18th. Shareholders of record on Tuesday, February 10th were given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend was Tuesday, February 10th. Dolby Laboratories's payout ratio is 58.06%.

Insiders Place Their Bets

In other news, SVP Shriram Revankar sold 3,000 shares of the business's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $66.14, for a total value of $198,420.00. Following the completion of the sale, the senior vice president owned 83,218 shares of the company's stock, valued at approximately $5,504,038.52. The trade was a 3.48% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CAO Ryan Nicholson sold 2,667 shares of the business's stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $66.38, for a total transaction of $177,035.46. Following the completion of the sale, the chief accounting officer directly owned 36,956 shares of the company's stock, valued at approximately $2,453,139.28. The trade was a 6.73% decrease in their position. The SEC filing for this sale provides additional information. Insiders own 37.93% of the company's stock.

Institutional Investors Weigh In On Dolby Laboratories

A number of institutional investors have recently modified their holdings of the business. Paragon Capital Management Inc. bought a new stake in shares of Dolby Laboratories in the first quarter valued at about $1,306,000. Diversified Trust Co boosted its position in shares of Dolby Laboratories by 49.2% in the first quarter. Diversified Trust Co now owns 13,118 shares of the electronics maker's stock valued at $788,000 after acquiring an additional 4,328 shares during the period. Hsbc Holdings PLC boosted its position in shares of Dolby Laboratories by 5.0% in the fourth quarter. Hsbc Holdings PLC now owns 6,301 shares of the electronics maker's stock valued at $406,000 after acquiring an additional 301 shares during the period. Rockefeller Capital Management L.P. boosted its position in shares of Dolby Laboratories by 292.4% in the fourth quarter. Rockefeller Capital Management L.P. now owns 3,732 shares of the electronics maker's stock valued at $240,000 after acquiring an additional 2,781 shares during the period. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Dolby Laboratories by 73,900.0% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 1,480 shares of the electronics maker's stock valued at $95,000 after acquiring an additional 1,478 shares during the period. 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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