Bank of New York Mellon Corp Trims Stake in Dolby Laboratories $DLB

Key Points

• Bank of New York Mellon cut its Dolby Laboratories stake by 14% in the first quarter, selling 732,526 shares and still holding about 4.71% of the company worth roughly $270.3 million.
• Dolby reported better-than-expected quarterly results, with EPS of $1.37 versus $1.31 expected and revenue of $395.63 million, up 7% year over year. The company also reaffirmed upbeat guidance for FY 2026 and Q3 2026.
• Shares were trading near their 52-week low at $48.97, while analysts maintain a Moderate Buy consensus with an average price target of $90.75. The company also paid a quarterly dividend of $0.36 per share, implying a 2.9% yield.

Bank of New York Mellon Corp lessened its stake in shares of Dolby Laboratories (NYSE:DLB - Free Report) by 14.0% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,499,820 shares of the electronics maker's stock after selling 732,526 shares during the quarter. Bank of New York Mellon Corp owned approximately 4.71% of Dolby Laboratories worth $270,259,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also recently added to or reduced their stakes in the company. Boothbay Fund Management LLC raised its position in shares of Dolby Laboratories by 4.1% in the 2nd quarter. Boothbay Fund Management LLC now owns 4,020 shares of the electronics maker's stock worth $299,000 after buying an additional 157 shares during the period. Covestor Ltd boosted its stake in shares of Dolby Laboratories by 6.0% during the 4th quarter. Covestor Ltd now owns 3,088 shares of the electronics maker's stock valued at $198,000 after buying an additional 175 shares during the last quarter. Fifth Third Bancorp lifted its holdings in Dolby Laboratories by 34.7% during the 4th quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker's stock worth $48,000 after buying an additional 192 shares during the last quarter. State of Michigan Retirement System lifted its position in shares of Dolby Laboratories by 1.4% in the 1st quarter. State of Michigan Retirement System now owns 14,700 shares of the electronics maker's stock worth $883,000 after buying an additional 200 shares during the last quarter. Finally, Raymond James Financial Inc. grew its stake in Dolby Laboratories by 1.0% during the 2nd quarter. Raymond James Financial Inc. now owns 24,344 shares of the electronics maker's stock worth $1,808,000 after buying an additional 235 shares during the last quarter. Institutional investors and hedge funds own 58.56% of the company's stock.

Dolby Laboratories Price Performance

Shares of DLB stock opened at $48.97 on Friday. The stock has a market cap of $4.63 billion, a P/E ratio of 19.36 and a beta of 0.81. The stock has a fifty day moving average price of $52.91 and a 200 day moving average price of $59.48. Dolby Laboratories has a one year low of $48.26 and a one year high of $77.00.

Dolby Laboratories (NYSE:DLB - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The electronics maker reported $1.37 EPS for the quarter, topping analysts' consensus estimates of $1.31 by $0.06. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.The business had revenue of $395.63 million for the quarter, compared to analyst estimates of $385.80 million. During the same period in the prior year, the company earned $1.34 EPS. Dolby Laboratories'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. Equities research analysts anticipate that Dolby Laboratories will post 3.21 EPS for the current year.

Dolby Laboratories Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, May 20th. Stockholders of record on Tuesday, May 12th were issued a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 2.9%. The ex-dividend date was Tuesday, May 12th. Dolby Laboratories's payout ratio is 56.92%.

Analyst Upgrades and Downgrades

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

Insiders Place Their Bets

In other news, SVP John D. Couling sold 7,667 shares of the business's stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.20, for a total value of $407,884.40. Following the sale, the senior vice president directly owned 118,727 shares in the company, valued at $6,316,276.40. The trade was a 6.07% 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, CFO Robert J. Park sold 4,895 shares of the stock in a transaction dated Tuesday, May 12th. The shares were 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 represents a 5.67% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 47,458 shares of company stock valued at $2,639,537 over the last 90 days. 37.93% of the stock is owned by company insiders.

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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