Dolby Laboratories $DLB Shares Purchased by Dimensional Fund Advisors LP

Dimensional Fund Advisors LP lifted its position in shares of Dolby Laboratories (NYSE:DLB - Free Report) by 6.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,321,407 shares of the electronics maker's stock after acquiring an additional 83,835 shares during the quarter. Dimensional Fund Advisors LP owned 1.38% of Dolby Laboratories worth $79,357,000 as of its most recent SEC filing.

A number of other institutional investors have also recently added to or reduced their stakes in the stock. Fifth Third Bancorp raised 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 worth $48,000 after purchasing an additional 192 shares during the last quarter. 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 purchased a new stake in Dolby Laboratories in the 3rd quarter valued at $68,000. Quarry LP grew its holdings in shares of Dolby Laboratories by 1,486.7% in the fourth quarter. Quarry LP now owns 1,190 shares of the electronics maker's stock valued at $76,000 after purchasing an additional 1,115 shares during the period. Finally, Farther Finance Advisors LLC increased its holdings in shares of Dolby Laboratories by 48.4% during the 4th quarter. Farther Finance Advisors LLC now owns 1,232 shares of the electronics maker's stock worth $79,000 after buying an additional 402 shares during the last quarter. Institutional investors and hedge funds own 58.56% of the company's stock.

Dolby Laboratories Stock Performance

Shares of DLB stock opened at $51.69 on Friday. The stock's 50-day moving average is $52.21 and its two-hundred day moving average is $58.58. Dolby Laboratories has a 1 year low of $48.26 and a 1 year high of $75.80. The firm has a market cap of $4.89 billion, a price-to-earnings ratio of 20.43 and a beta of 0.81.

Dolby Laboratories (NYSE:DLB - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.67 by $0.02. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.The firm had revenue of $305.00 million for the quarter, compared to the consensus estimate of $311.96 million. During the same quarter last year, the business posted $0.78 EPS. The firm's quarterly 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. As a group, research analysts predict that Dolby Laboratories will post 3.21 EPS for the current year.

Dolby Laboratories announced that its Board of Directors has authorized a stock buyback program on Thursday, July 30th that authorizes the company to buyback $350.00 million in shares. This buyback authorization authorizes the electronics maker to repurchase up to 7% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's board of directors believes its shares are undervalued.

Dolby Laboratories Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th will be given a $0.36 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $1.44 annualized dividend and a yield of 2.8%. Dolby Laboratories's dividend payout ratio is 56.92%.

Key Headlines Impacting Dolby Laboratories

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

• Positive Sentiment: Raised earnings outlook: Dolby guided fiscal 2026 adjusted EPS to $4.25-$4.40, above the $4.10 consensus. Fourth-quarter revenue guidance of $362 million-$392 million also exceeded estimates of $351.1 million, suggesting management expects stronger near-term performance. Dolby Laboratories Reports Q3 Results, Boosts Share Repurchases
• Positive Sentiment: Adjusted EPS beat expectations: Third-quarter adjusted earnings were $0.69 per share, topping the $0.67 consensus, while operating cash flow increased to $167.5 million. Dolby also announced an expansion of its share-repurchase authorization, which may support per-share value. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Neutral Sentiment: Mixed investor positioning: Institutional activity was divided, with 184 investors adding shares and 192 reducing positions during the latest quarter. Recent analyst price targets remained well above the current trading level, but the limited number of targets reduces their significance.
• Negative Sentiment: Revenue missed and declined: Third-quarter revenue was $305 million, below estimates ranging from roughly $312 million to $315 million and down 3.3% year over year. This suggests continued pressure in Dolby’s core licensing and technology businesses. Dolby Laboratories Reports Q3 Earnings
• Negative Sentiment: Profitability weakened: GAAP net income fell to $28.6 million and diluted EPS to $0.30 from the prior year, while operating profit declined to $34.3 million. In addition, reported insider transactions showed selling but no purchases over the past six months, a potential sentiment headwind.

Insider Buying and Selling at Dolby Laboratories

In related news, CMO Todd Pendleton sold 11,876 shares of the firm's stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $54.55, for a total transaction of $647,835.80. Following the transaction, the chief marketing officer owned 41,480 shares of the company's stock, valued at $2,262,734. This trade represents a 22.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Shriram Revankar sold 3,000 shares of the business's stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $54.90, for a total value of $164,700.00. Following the completion of the transaction, the senior vice president owned 80,603 shares in the company, valued at $4,425,104.70. This trade represents a 3.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 47,458 shares of company stock worth $2,639,537 in the last quarter. 37.93% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

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

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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