Dolby Laboratories (NYSE:DLB) Sets New 1-Year Low - Should You Sell?

Key Points

• Dolby Laboratories hit a new 52-week low on Thursday, trading as low as $50.71 and ending near $51.06, well below its recent close of $52.59.
• Despite the stock’s weakness, recent analyst sentiment remains moderately positive, with a consensus rating of “Moderate Buy” and an average price target of $90.75. Several firms reiterated buy/outperform calls, though one analyst kept a hold rating.
• The company’s latest earnings were better than expected, with EPS of $1.37 topping estimates and revenue rising 7% year over year. Dolby also pays a quarterly dividend of $0.36, implying a 2.8% yield, while insiders have sold shares recently.

Dolby Laboratories (NYSE:DLB - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The stock traded as low as $50.71 and last traded at $51.0610, with a volume of 870386 shares changing hands. The stock had previously closed at $52.59.

Wall Street Analyst Weigh In

Several analysts have weighed in on DLB shares. Rosenblatt Securities reissued a "buy" rating and set a $85.00 target price on shares of Dolby Laboratories in a research report on Thursday, June 11th. Wall Street Zen raised shares of Dolby Laboratories from a "hold" rating to a "buy" rating in a report on Saturday, May 30th. Weiss Ratings reiterated a "hold (c-)" rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Finally, Barrington Research reissued an "outperform" rating and set a $90.00 price objective on shares of Dolby Laboratories in a report on Monday, June 15th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to MarketBeat.com, Dolby Laboratories currently has a consensus rating of "Moderate Buy" and a consensus price target of $90.75.

Dolby Laboratories Trading Down 2.8%

The company has a market capitalization of $4.84 billion, a PE ratio of 20.20 and a beta of 0.81. The business's 50-day simple moving average is $55.84 and its 200-day simple moving average is $60.84.

Dolby Laboratories (NYSE:DLB - Get Free Report) last released its quarterly earnings data on Thursday, April 30th. The electronics maker reported $1.37 EPS for the quarter, beating the consensus estimate of $1.31 by $0.06. Dolby Laboratories had a net margin of 17.85% and a return on equity of 11.47%. The business had revenue of $395.63 million for the quarter, compared to the consensus estimate of $385.80 million. During the same period in the prior year, the firm earned $1.34 EPS. The business's revenue for the quarter was up 7.0% on a year-over-year basis. 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. Sell-side analysts forecast that Dolby Laboratories will post 3.21 EPS for the current fiscal year.

Dolby Laboratories Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, May 20th. Stockholders of record on Tuesday, May 12th were issued a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Tuesday, May 12th. Dolby Laboratories's payout ratio is 56.92%.

Insider Buying and Selling

In related news, CFO Robert J. Park sold 4,895 shares of Dolby Laboratories stock in a transaction that occurred on Tuesday, May 12th. The stock was sold at an average price of $56.68, for a total transaction of $277,448.60. Following the completion of the transaction, the chief financial officer directly owned 81,490 shares in the company, valued at approximately $4,618,853.20. This trade represents a 5.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP John D. Couling sold 7,666 shares of the business's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $55.62, for a total value of $426,382.92. Following the completion of the transaction, the senior vice president directly owned 118,727 shares of the company's stock, valued at $6,603,595.74. The trade was a 6.07% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 39,791 shares of company stock valued at $2,231,653 in the last three months. 37.93% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Fifth Third Bancorp grew its position in shares of Dolby Laboratories by 34.7% during the 4th quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker's stock valued at $48,000 after acquiring an additional 192 shares during the period. Aquatic Capital Management LLC purchased a new stake in shares of Dolby Laboratories in the third quarter valued at approximately $56,000. iSAM Funds UK Ltd acquired a new position in shares of Dolby Laboratories during the 3rd quarter worth approximately $68,000. Hilltop National Bank acquired a new position in shares of Dolby Laboratories during the 4th quarter worth approximately $69,000. Finally, Allworth Financial LP lifted its position in shares of Dolby Laboratories by 99.6% during the 3rd quarter. Allworth Financial LP now owns 1,006 shares of the electronics maker's stock valued at $73,000 after buying an additional 502 shares in the last quarter. Hedge funds and other institutional investors own 58.56% of the company's stock.

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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