Insider Selling: Dolby Laboratories (NYSE:DLB) CAO Sells 357 Shares of Stock

Key Points

• Insider sale: Dolby Laboratories CAO Ryan Nicholson sold 357 shares at an average price of $60.63, totaling $21,644.91. His remaining stake is 36,984 shares, a 0.96% reduction in ownership.
• Quarterly results: Dolby reported adjusted earnings of $0.69 per share, beating estimates by $0.02, while revenue of $305 million fell short of expectations and declined 3.3% year over year.
• Shareholder returns and outlook: 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.

Dolby Laboratories (NYSE:DLB - Get Free Report) CAO Ryan Nicholson sold 357 shares of the firm's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $60.63, for a total value of $21,644.91. Following the completion of the transaction, the chief accounting officer owned 36,984 shares in the company, valued at approximately $2,242,339.92. This trade represents a 0.96% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website.

Dolby Laboratories Price Performance

Shares of DLB traded down $0.49 during trading hours on Thursday, hitting $60.87. The stock had a trading volume of 1,132,331 shares, compared to its average volume of 828,452. The firm has a market capitalization of $5.76 billion, a PE ratio of 25.90 and a beta of 0.80. Dolby Laboratories has a 12 month low of $48.26 and a 12 month high of $75.66. The stock has a fifty day moving average price of $52.59 and a 200 day moving average price of $58.48.

Dolby Laboratories (NYSE:DLB - Get Free Report) last posted its earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, beating analysts' consensus estimates of $0.67 by $0.02. The company had revenue of $305.00 million for the quarter, compared to the consensus estimate of $311.96 million. Dolby Laboratories had a return on equity of 11.08% and a net margin of 16.70%.Dolby Laboratories's revenue was down 3.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.78 earnings per share. 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, analysts anticipate that Dolby Laboratories will post 3.21 EPS for the current fiscal year.

Dolby Laboratories Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 19th. Stockholders of record on Tuesday, August 11th will be paid a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, August 11th. Dolby Laboratories's dividend payout ratio is 61.28%.

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

Analyst Ratings Changes

A number of analysts have commented on the stock. Rosenblatt Securities reaffirmed a "buy" rating and set a $85.00 target price on shares of Dolby Laboratories in a report on Friday, July 31st. Barrington Research reiterated an "outperform" rating and set a $90.00 price target on shares of Dolby Laboratories in a research note on Monday, June 15th. Wall Street Zen downgraded shares of Dolby Laboratories from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Three analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Dolby Laboratories currently has a consensus rating of "Moderate Buy" and an average price target of $90.75.

Institutional Investors Weigh In On Dolby Laboratories

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fifth Third Bancorp lifted its holdings in Dolby Laboratories by 34.7% during the fourth quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker's stock valued at $48,000 after purchasing an additional 192 shares in the last quarter. Aquatic Capital Management LLC bought a new stake in shares of Dolby Laboratories during the 3rd quarter valued at $56,000. iSAM Funds UK Ltd bought a new stake in shares of Dolby Laboratories during the 3rd quarter valued at $68,000. Quarry LP lifted its stake in shares of Dolby Laboratories by 1,486.7% during the 4th quarter. Quarry LP now owns 1,190 shares of the electronics maker's stock valued at $76,000 after buying an additional 1,115 shares in the last quarter. Finally, Farther Finance Advisors LLC boosted its holdings in Dolby Laboratories by 48.4% in 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 period. 58.56% of the stock is owned by hedge funds and other institutional investors.

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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