Dolby Laboratories (NYSE:DLB) Sets New 12-Month Low - Should You Sell?

Key Points

• Dolby Laboratories' stock has hit a new 52-week low, trading as low as $67.54, down from a previous close of $69.58.
• Analysts have mixed views on the stock, with ratings varying from “buy” to “hold”, resulting in a consensus rating of "Moderate Buy" and an average target price of $95.75.
• The company recently declared a quarterly dividend of $0.33 per share, translating to an annualized yield of 2.0%.

Dolby Laboratories (NYSE:DLB - Get Free Report)'s stock price reached a new 52-week low on Wednesday . The stock traded as low as $67.54 and last traded at $67.69, with a volume of 206291 shares changing hands. The stock had previously closed at $69.58.

Analyst Upgrades and Downgrades

DLB has been the subject of a number of analyst reports. Wall Street Zen raised shares of Dolby Laboratories from a "hold" rating to a "buy" rating in a research note on Saturday, August 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Dolby Laboratories in a research note on Wednesday, October 8th. Robert W. Baird initiated coverage on shares of Dolby Laboratories in a research note on Friday, September 5th. They set a "neutral" rating and a $74.00 price objective for the company. Barrington Research reissued an "outperform" rating and issued a $100.00 price target on shares of Dolby Laboratories in a research report on Friday, September 12th. Finally, Tigress Financial increased their price target on shares of Dolby Laboratories from $112.00 to $114.00 and gave the stock a "buy" rating in a research report on Friday, August 15th. Three equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $95.75.

Dolby Laboratories Price Performance

The business has a fifty day moving average of $71.73 and a 200 day moving average of $73.58. The stock has a market cap of $6.43 billion, a price-to-earnings ratio of 24.59 and a beta of 0.92.

Dolby Laboratories (NYSE:DLB - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The electronics maker reported $0.78 EPS for the quarter, beating the consensus estimate of $0.72 by $0.06. Dolby Laboratories had a return on equity of 11.52% and a net margin of 19.62%.The company had revenue of $315.55 million for the quarter, compared to the consensus estimate of $305.23 million. During the same quarter last year, the company posted $0.71 earnings per share. The company's revenue for the quarter was up 9.2% compared to the same quarter last year. Dolby Laboratories has set its FY 2025 guidance at 3.880-4.030 EPS. Q4 2025 guidance at 0.610-0.760 EPS. On average, analysts expect that Dolby Laboratories will post 2.94 EPS for the current year.

Dolby Laboratories Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, August 20th. Shareholders of record on Tuesday, August 12th were issued a dividend of $0.33 per share. This represents a $1.32 annualized dividend and a yield of 2.0%. The ex-dividend date was Tuesday, August 12th. Dolby Laboratories's dividend payout ratio (DPR) is 48.35%.

Insider Activity at Dolby Laboratories

In other Dolby Laboratories news, CEO Kevin J. Yeaman sold 25,000 shares of the stock in a transaction that occurred on Tuesday, August 12th. The stock was sold at an average price of $72.31, for a total transaction of $1,807,750.00. Following the transaction, the chief executive officer owned 114,725 shares in the company, valued at $8,295,764.75. This trade represents a 17.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, SVP Shriram Revankar sold 7,000 shares of the firm's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $74.92, for a total transaction of $524,440.00. Following the completion of the sale, the senior vice president owned 70,435 shares in the company, valued at approximately $5,276,990.20. The trade was a 9.04% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 82,000 shares of company stock worth $5,845,440. Corporate insiders own 38.39% of the company's stock.

Institutional Investors Weigh In On Dolby Laboratories

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in Dolby Laboratories by 7.1% in the first quarter. Vanguard Group Inc. now owns 7,535,722 shares of the electronics maker's stock worth $605,194,000 after purchasing an additional 502,110 shares during the period. Bank of New York Mellon Corp lifted its holdings in shares of Dolby Laboratories by 18.3% during the first quarter. Bank of New York Mellon Corp now owns 5,709,193 shares of the electronics maker's stock valued at $458,505,000 after acquiring an additional 882,716 shares during the period. State Street Corp lifted its holdings 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 acquiring an additional 180,072 shares during the period. AQR Capital Management LLC raised its holdings in shares of Dolby Laboratories by 51.8% in the second quarter. AQR Capital Management LLC now owns 1,736,260 shares of the electronics maker's stock valued at $128,935,000 after buying an additional 592,282 shares during the last quarter. Finally, Geode Capital Management LLC raised its holdings in shares of Dolby Laboratories by 2.0% in the second quarter. Geode Capital Management LLC now owns 1,556,571 shares of the electronics maker's stock valued at $116,159,000 after buying an additional 30,057 shares during the last quarter. Institutional investors and hedge funds own 58.56% of the company's stock.

Dolby Laboratories Company Profile

Dolby Laboratories, Inc creates audio and imaging technologies that transform entertainment at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices.

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