Dolby Laboratories (NYSE:DLB) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Dolby Laboratories has a consensus analyst rating of “Moderate Buy” from five brokerages, with an average 12-month price target of $90.75.
• The company recently reported better-than-expected quarterly earnings, posting $1.37 EPS versus $1.31 expected and revenue of $395.63 million versus $385.80 million estimated, while revenue rose 7% year over year.
• Dolby also announced a quarterly dividend of $0.36 per share, equal to a 2.7% annualized yield, even as shares traded near their 52-week low and insiders continued to sell stock.

Dolby Laboratories (NYSE:DLB - Get Free Report) has received a consensus rating of "Moderate Buy" from the five brokerages that are currently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and three have given a buy recommendation to the company. The average 1 year price target among brokerages that have issued ratings on the stock in the last year is $90.75.

A number of research analysts have weighed in on the company. Barrington Research reaffirmed an "outperform" rating and set a $90.00 target price on shares of Dolby Laboratories in a report on Monday, April 27th. Weiss Ratings reiterated 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. Finally, Rosenblatt Securities reiterated a "buy" rating and set a $85.00 price target on shares of Dolby Laboratories in a research report on Friday, January 30th.

Dolby Laboratories Stock Down 2.0%

DLB stock opened at $54.28 on Thursday. The firm has a market capitalization of $5.14 billion, a PE ratio of 21.46 and a beta of 0.86. Dolby Laboratories has a twelve month low of $53.45 and a twelve month high of $77.64. The stock has a 50-day simple moving average of $61.52 and a two-hundred day simple moving average of $63.94.

Dolby Laboratories (NYSE:DLB - Get Free Report) last posted its earnings results on Thursday, April 30th. The electronics maker reported $1.37 earnings per share for the quarter, beating analysts' consensus estimates 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%.The company's quarterly revenue was up 7.0% compared to the same quarter last year. During the same quarter in the previous year, the firm 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, equities research analysts anticipate that Dolby Laboratories will post 3.22 EPS for the current fiscal year.

Dolby Laboratories Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, May 20th. Stockholders of record on Tuesday, May 12th will be given a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Tuesday, May 12th. Dolby Laboratories's dividend payout ratio (DPR) is 56.92%.

Insider Activity

In other news, CAO Ryan Nicholson sold 2,667 shares of Dolby Laboratories stock in a transaction on 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 transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Shriram Revankar sold 3,000 shares of Dolby Laboratories 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 sale, the senior vice president directly owned 83,218 shares of the company's stock, valued at $5,504,038.52. This represents a 3.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 18,021 shares of company stock worth $1,090,741. 37.93% of the stock is currently owned by insiders.

Institutional Trading of Dolby Laboratories

Hedge funds have recently made changes to their positions in the stock. Boothbay Fund Management LLC lifted its position in Dolby Laboratories by 4.1% in the 2nd quarter. Boothbay Fund Management LLC now owns 4,020 shares of the electronics maker's stock worth $299,000 after buying an additional 157 shares during the last quarter. Covestor Ltd boosted its stake in Dolby Laboratories by 6.0% in the fourth quarter. Covestor Ltd now owns 3,088 shares of the electronics maker's stock worth $198,000 after buying an additional 175 shares in the last quarter. Fifth Third Bancorp boosted its stake in Dolby Laboratories by 34.7% in the fourth quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker's stock worth $48,000 after buying an additional 192 shares in the last quarter. State of Michigan Retirement System boosted its stake in Dolby Laboratories by 1.4% in the first quarter. State of Michigan Retirement System now owns 14,700 shares of the electronics maker's stock worth $883,000 after buying an additional 200 shares in the last quarter. Finally, Gabelli Funds LLC boosted its stake in Dolby Laboratories by 0.4% in the third quarter. Gabelli Funds LLC now owns 49,143 shares of the electronics maker's stock worth $3,556,000 after buying an additional 202 shares in the last quarter. 58.56% of the stock is owned by institutional investors.

About Dolby Laboratories

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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