Dolby Laboratories (NYSE:DLB) Sets New 1-Year Low - Time to Sell?

Key Points

• Dolby Laboratories hit a new 52-week low on Wednesday, falling to as low as $51.53 and closing near that level, as the stock traded below both its 50-day and 200-day moving averages.
• Despite the recent weakness, analysts remain generally bullish: the stock has a “Moderate Buy” consensus rating and an average price target of $90.75, with multiple firms reiterating buy/outperform ratings.
• Dolby recently beat earnings and revenue estimates, and it continues to pay a dividend yielding 2.8%; however, recent insider sales and the stock’s slide may be pressuring investor sentiment.

Dolby Laboratories (NYSE:DLB - Get Free Report) hit a new 52-week low during trading on Wednesday . The company traded as low as $51.53 and last traded at $52.06, with a volume of 328666 shares changing hands. The stock had previously closed at $52.84.

Analysts Set New Price Targets

Several brokerages recently issued reports on DLB. Rosenblatt Securities reaffirmed a "buy" rating and set a $85.00 price objective on shares of Dolby Laboratories in a research note on Thursday, June 11th. Weiss Ratings restated a "hold (c-)" rating on shares of Dolby Laboratories in a report on Friday, March 27th. Wall Street Zen raised Dolby Laboratories from a "hold" rating to a "buy" rating in a report on Saturday, May 30th. Finally, Barrington Research reiterated an "outperform" rating and set a $90.00 price objective on shares of Dolby Laboratories in a research report on Monday. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $90.75.

Dolby Laboratories Stock Down 3.1%

The company's 50-day moving average is $58.03 and its 200-day moving average is $61.97. The stock has a market capitalization of $4.84 billion, a price-to-earnings ratio of 20.23 and a beta of 0.81.

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 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 company had revenue of $395.63 million for the quarter, compared to analyst estimates of $385.80 million. During the same period in the previous year, the business posted $1.34 EPS. Dolby Laboratories's revenue 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 anticipate that Dolby Laboratories will post 3.21 EPS for the current year.

Dolby Laboratories Dividend Announcement

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

Insiders Place Their Bets

In other news, CMO Todd Pendleton sold 11,876 shares of the stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $54.55, for a total transaction of $647,835.80. Following the completion of the transaction, the chief marketing officer directly owned 41,480 shares in the company, valued at approximately $2,262,734. This represents a 22.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, SVP Shriram Revankar sold 3,000 shares of the firm's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $54.90, for a total value of $164,700.00. Following the sale, the senior vice president directly owned 80,603 shares of the company's stock, valued at $4,425,104.70. The trade was a 3.59% 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 worth $2,231,653 in the last three months. 37.93% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Teacher Retirement System of Texas boosted its position in shares of Dolby Laboratories by 19.1% during the 4th quarter. Teacher Retirement System of Texas now owns 115,772 shares of the electronics maker's stock worth $7,435,000 after purchasing an additional 18,579 shares during the period. JPMorgan Chase & Co. raised its position in Dolby Laboratories by 81.3% in the third quarter. JPMorgan Chase & Co. now owns 312,028 shares of the electronics maker's stock valued at $22,582,000 after purchasing an additional 139,900 shares during the period. Clifford Capital Partners LLC lifted its stake in Dolby Laboratories by 15.2% during the third quarter. Clifford Capital Partners LLC now owns 304,311 shares of the electronics maker's stock worth $22,023,000 after purchasing an additional 40,252 shares in the last quarter. Vanguard Group Inc. boosted its position in shares of Dolby Laboratories by 2.7% during the third quarter. Vanguard Group Inc. now owns 7,756,924 shares of the electronics maker's stock worth $561,369,000 after buying an additional 203,411 shares during the period. Finally, Snyder Capital Management L P boosted its position in shares of Dolby Laboratories by 11.4% during the third quarter. Snyder Capital Management L P now owns 1,147,350 shares of the electronics maker's stock worth $83,034,000 after buying an additional 117,229 shares during the period. Hedge funds and other 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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