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

Key Points

• Dolby Laboratories has a consensus analyst rating of “Moderate Buy” from five brokerages, with three buy ratings and two hold ratings. The average 12-month price target is $90.75.
• The company’s latest quarter beat expectations, reporting $1.37 EPS versus estimates of $1.31 and revenue of $395.63 million versus $385.80 million expected. Revenue rose 7% year over year, and Dolby also issued FY 2026 guidance of 4.30–4.45 EPS.
• Insider selling was notable, including share sales by SVP John D. Couling and CMO Todd Pendleton, while institutional investors continued to increase holdings. Institutions now own 58.56% of the stock, and the company recently paid a quarterly dividend of $0.36 per share.

Dolby Laboratories (NYSE:DLB - Get Free Report) has been assigned an average rating of "Moderate Buy" from the five brokerages that are presently covering the stock, MarketBeat reports. Two research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. The average twelve-month target price among brokers that have issued a report on the stock in the last year is $90.75.

A number of brokerages recently commented on DLB. Wall Street Zen upgraded Dolby Laboratories from a "hold" rating to a "buy" rating in a research note on Saturday, May 30th. Rosenblatt Securities reissued a "buy" rating and set a $85.00 price target on shares of Dolby Laboratories in a report on Thursday, June 11th. Weiss Ratings reissued a "hold (c-)" rating on shares of Dolby Laboratories in a report on Wednesday, June 24th. Finally, Barrington Research restated an "outperform" rating and set a $90.00 price target on shares of Dolby Laboratories in a research report on Monday, June 15th.

Insider Activity

In other news, SVP John D. Couling sold 7,666 shares of the business's stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $55.62, for a total transaction of $426,382.92. Following the completion of the transaction, the senior vice president directly owned 118,727 shares in the company, valued at approximately $6,603,595.74. The trade was a 6.07% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CMO Todd Pendleton sold 11,876 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $54.55, for a total value of $647,835.80. Following the completion of the transaction, the chief marketing officer directly owned 41,480 shares of the company's stock, valued at $2,262,734. This trade represents a 22.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 39,791 shares of company stock worth $2,231,653 in the last quarter. Company insiders own 37.93% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. State Street Corp raised its stake in shares of Dolby Laboratories by 8.7% during the second quarter. State Street Corp now owns 2,261,059 shares of the electronics maker's stock valued at $167,906,000 after purchasing an additional 180,072 shares in the last quarter. First Trust Advisors LP raised its position in shares of Dolby Laboratories by 19.9% during the 1st quarter. First Trust Advisors LP now owns 2,254,933 shares of the electronics maker's stock worth $135,431,000 after buying an additional 374,405 shares in the last quarter. Geode Capital Management LLC lifted its stake in shares of Dolby Laboratories by 15.6% in the 4th quarter. Geode Capital Management LLC now owns 1,885,246 shares of the electronics maker's stock worth $122,749,000 after acquiring an additional 254,250 shares during the period. AQR Capital Management LLC lifted its stake in shares of Dolby Laboratories by 51.8% in the 2nd quarter. AQR Capital Management LLC now owns 1,736,260 shares of the electronics maker's stock worth $128,935,000 after acquiring an additional 592,282 shares during the period. Finally, Snyder Capital Management L P boosted its holdings in shares of Dolby Laboratories by 24.4% in the fourth quarter. Snyder Capital Management L P now owns 1,427,093 shares of the electronics maker's stock valued at $91,648,000 after acquiring an additional 279,743 shares in the last quarter. Institutional investors and hedge funds own 58.56% of the company's stock.

Dolby Laboratories Price Performance

Shares of DLB opened at $51.15 on Friday. Dolby Laboratories has a 12-month low of $50.60 and a 12-month high of $77.00. The business's fifty day moving average price is $55.57 and its 200 day moving average price is $60.72. The stock has a market capitalization of $4.84 billion, a PE ratio of 20.22 and a beta of 0.81.

Dolby Laboratories (NYSE:DLB - Get Free Report) last announced its quarterly earnings data 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 the consensus estimate of $385.80 million. Dolby Laboratories had a net margin of 17.85% and a return on equity of 11.47%. The company's revenue for the quarter was up 7.0% compared to the same quarter last year. During the same quarter in the prior 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. As a group, research analysts anticipate that Dolby Laboratories will post 3.21 earnings per share for the current fiscal year.

Dolby Laboratories Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, May 20th. Shareholders of record on Tuesday, May 12th were paid a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, May 12th. Dolby Laboratories's payout ratio is presently 56.92%.

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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