Dolby Laboratories $DLB Shares Sold by Empowered Funds LLC

Key Points

• Empowered Funds LLC cut its Dolby Laboratories stake by 31.1% in the first quarter, selling 16,990 shares and retaining 37,646 shares valued at approximately $2.26 million. Institutional investors collectively own 58.56% of the company.
• Analysts maintain a generally positive outlook, with three Buy ratings and two Hold ratings producing a consensus “Moderate Buy” rating and a $90.75 price target. Dolby recently exceeded quarterly EPS estimates, although revenue fell 3.3% year over year.
• Dolby declared a quarterly dividend of $0.36 per share, representing a 2.3% yield, and authorized a $350 million share-repurchase program covering up to 7% of outstanding shares.

Empowered Funds LLC lowered its stake in Dolby Laboratories (NYSE:DLB - Free Report) by 31.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 37,646 shares of the electronics maker's stock after selling 16,990 shares during the quarter. Empowered Funds LLC's holdings in Dolby Laboratories were worth $2,261,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. State Street Corp boosted its holdings in shares of Dolby Laboratories by 8.7% in 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 in the last quarter. First Trust Advisors LP raised its holdings in 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 in the last quarter. Geode Capital Management LLC lifted its position in Dolby Laboratories by 15.6% in 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 lifted its position in 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 period. Finally, Snyder Capital Management L P boosted its stake in Dolby Laboratories by 24.4% during the 4th quarter. Snyder Capital Management L P now owns 1,427,093 shares of the electronics maker's stock valued at $91,648,000 after purchasing an additional 279,743 shares in the last quarter. Institutional investors own 58.56% of the company's stock.

Wall Street Analysts Forecast Growth

DLB has been the subject of several research analyst reports. Wall Street Zen lowered Dolby Laboratories from a "buy" rating to a "hold" rating in a report on Saturday, August 1st. Weiss Ratings reaffirmed a "hold (c-)" rating on shares of Dolby Laboratories in a report on Wednesday, June 24th. Barrington Research reiterated an "outperform" rating and issued a $90.00 price target on shares of Dolby Laboratories in a research report on Monday, June 15th. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $85.00 price target on shares of Dolby Laboratories in a report on Friday, July 31st. Three equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $90.75.

Dolby Laboratories Price Performance

Shares of DLB opened at $61.31 on Thursday. The company has a 50-day moving average of $52.59 and a two-hundred day moving average of $58.48. The stock has a market cap of $5.80 billion, a price-to-earnings ratio of 26.09 and a beta of 0.80. Dolby Laboratories has a one year low of $48.26 and a one year high of $75.66.

Dolby Laboratories (NYSE:DLB - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 EPS for the quarter, topping analysts' consensus estimates of $0.67 by $0.02. The firm had revenue of $305.00 million during the quarter, compared to analyst estimates of $311.96 million. Dolby Laboratories had a net margin of 16.70% and a return on equity of 11.08%. The company's revenue was down 3.3% on a year-over-year basis. During the same quarter last year, the business posted $0.78 EPS. 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. Analysts anticipate 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. Shareholders of record on Tuesday, August 11th will be paid a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, August 11th. Dolby Laboratories's payout ratio is 61.28%.

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

Insiders Place Their Bets

In other news, SVP Shriram Revankar sold 3,000 shares of the stock in a transaction that occurred on 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 sale, the senior vice president directly owned 80,603 shares of the company's stock, valued at $4,425,104.70. This represents a 3.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CMO Todd Pendleton sold 11,876 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $54.55, for a total transaction of $647,835.80. Following the transaction, the chief marketing officer directly owned 41,480 shares in the company, valued at $2,262,734. The trade was a 22.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 42,771 shares of company stock worth $2,384,272 over the last quarter. Company insiders own 37.93% of the company's stock.

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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