Arrowstreet Capital Limited Partnership Has $7.48 Million Position in Dolby Laboratories $DLB

Key Points

• Arrowstreet Capital sharply increased its Dolby Laboratories stake by 507.5% in the first quarter, owning 124,509 shares worth approximately $7.48 million. Institutional investors collectively hold 58.56% of DLB.
• Dolby’s quarterly EPS of $0.69 exceeded expectations of $0.67, but revenue declined 3.3% year over year to $305 million and missed estimates. Management provided fiscal 2026 EPS guidance of $4.25–$4.40.
• The company declared a $0.36 quarterly dividend and authorized a $350 million share-repurchase program covering up to 7% of outstanding shares; analysts maintain a “Moderate Buy” consensus with an average price target of $90.75.

Arrowstreet Capital Limited Partnership increased its holdings in shares of Dolby Laboratories (NYSE:DLB - Free Report) by 507.5% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 124,509 shares of the electronics maker's stock after buying an additional 104,014 shares during the period. Arrowstreet Capital Limited Partnership owned about 0.13% of Dolby Laboratories worth $7,478,000 at the end of the most recent quarter.

A number of other institutional investors have also recently added to or reduced their stakes in DLB. State Street Corp increased its position in Dolby Laboratories by 8.7% in the 2nd 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. First Trust Advisors LP lifted its holdings in shares of Dolby Laboratories by 19.9% during the first quarter. First Trust Advisors LP now owns 2,254,933 shares of the electronics maker's stock worth $135,431,000 after purchasing an additional 374,405 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Dolby Laboratories by 15.6% during the fourth quarter. Geode Capital Management LLC now owns 1,885,246 shares of the electronics maker's stock worth $122,749,000 after purchasing an additional 254,250 shares during the period. AQR Capital Management LLC grew its stake 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 worth $128,935,000 after purchasing an additional 592,282 shares during the last quarter. Finally, Snyder Capital Management L P grew its stake 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 worth $91,648,000 after purchasing an additional 279,743 shares during the last quarter. 58.56% of the stock is owned by institutional investors.

Dolby Laboratories Stock Up 13.5%

DLB stock opened at $58.78 on Friday. The firm has a market cap of $5.56 billion, a price-to-earnings ratio of 25.01 and a beta of 0.81. Dolby Laboratories has a 12-month low of $48.26 and a 12-month high of $75.80. The company's fifty day simple moving average is $52.29 and its 200 day simple moving average is $58.58.

Dolby Laboratories (NYSE:DLB - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, topping analysts' consensus estimates of $0.67 by $0.02. Dolby Laboratories had a return on equity of 11.06% and a net margin of 16.70%.The firm had revenue of $305.00 million during the quarter, compared to the consensus estimate of $311.96 million. During the same period last year, the business posted $0.78 EPS. The business's revenue was down 3.3% compared to the same quarter last year. Dolby Laboratories has set its FY 2026 guidance at 4.250-4.400 EPS and its Q4 2026 guidance at 1.130-1.280 EPS. Research analysts expect that Dolby Laboratories will post 3.21 earnings per share for the current year.

Dolby Laboratories Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th will be paid a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $1.44 annualized dividend and a yield of 2.4%. Dolby Laboratories's dividend payout ratio (DPR) is currently 61.28%.

Dolby Laboratories announced that its board has approved a share repurchase program on Thursday, July 30th that authorizes the company to repurchase $350.00 million in shares. This repurchase authorization authorizes the electronics maker to purchase up to 7% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company's management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on DLB shares. Barrington Research reaffirmed an "outperform" rating and set a $90.00 target price on shares of Dolby Laboratories in a research report on Monday, June 15th. Rosenblatt Securities reiterated a "buy" rating and issued a $85.00 price target on shares of Dolby Laboratories in a research report on Friday. Weiss Ratings reissued a "hold (c-)" rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Finally, Wall Street Zen downgraded Dolby Laboratories from a "buy" rating to a "hold" rating in a research report on Saturday. Three research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Dolby Laboratories presently has a consensus rating of "Moderate Buy" and an average price target of $90.75.

Key Stories Impacting Dolby Laboratories

Here are the key news stories impacting Dolby Laboratories this week:

• Positive Sentiment: Adjusted earnings beat expectations: Dolby reported fiscal third-quarter adjusted EPS of $0.69, above the $0.67 consensus estimate. Lower operating expenses helped offset weaker revenue. Dolby's Q3 Earnings Beat Estimates on Lower Operating Expenses
• Positive Sentiment: Upbeat forward outlook: Fiscal fourth-quarter revenue guidance of $362 million to $392 million exceeded the roughly $351 million analyst estimate, while full-year EPS guidance of $4.25 to $4.40 topped the $4.10 consensus. Management cited momentum in video licensing, automotive applications, and new device categories. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Positive Sentiment: $350 million stock-repurchase authorization: Dolby’s board approved a plan to repurchase up to 7% of outstanding shares, signaling management’s view that the stock may be undervalued and potentially supporting per-share results. Dolby Laboratories Share Repurchase Plan
• Positive Sentiment: Dividend and analyst support: Dolby declared a quarterly dividend of $0.36 per share, representing an approximate 2.5% annualized yield. Rosenblatt Securities reaffirmed its Buy rating and set an $85 price target, well above the recent trading level. Dolby Laboratories Dividend Signals Confidence
• Neutral Sentiment: Cash generation remained strong: Operating cash flow rose to $167.5 million, and Dolby ended the quarter with $669.4 million in cash, providing flexibility for buybacks, dividends, and investment.
• Negative Sentiment: Revenue and reported profitability declined: Third-quarter revenue fell 3.3% year over year to $305 million and missed estimates near $312 million. Reported net income and diluted GAAP EPS also declined from the prior year, reflecting softer device sales and continued pressure in some business areas. Dolby Laboratories Fiscal Q3 Adjusted Earnings, Revenue Fall

Insiders Place Their Bets

In other Dolby Laboratories news, SVP John D. Couling sold 7,667 shares of the stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $53.20, for a total transaction of $407,884.40. Following the transaction, the senior vice president directly owned 118,727 shares in the company, valued at approximately $6,316,276.40. This represents a 6.07% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Shriram Revankar sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $54.90, for a total transaction of $164,700.00. Following the sale, the senior vice president directly owned 80,603 shares of the company's stock, valued at approximately $4,425,104.70. This trade represents a 3.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 47,458 shares of company stock worth $2,639,537. Company insiders own 37.93% of the company's stock.

Dolby Laboratories 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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This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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