Dolby Laboratories (NYSE:DLB) Hits New 52-Week Low on Analyst Downgrade

Dolby Laboratories (NYSE:DLB)’s share price hit a new 52-week low on Tuesday after Barrington Research lowered their price target on the stock from $95.00 to $90.00. Barrington Research currently has an outperform rating on the stock. Dolby Laboratories traded as low as $60.93 and last traded at $60.8550, with a volume of 40340 shares. The stock had previously closed at $62.12.

Other analysts have also recently issued reports about the company. Wall Street Zen raised Dolby Laboratories from a “hold” rating to a “buy” rating in a report on Monday, January 5th. Rosenblatt Securities reiterated a “buy” rating and set a $85.00 price objective on shares of Dolby Laboratories in a research report on Thursday, January 22nd. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Monday, December 29th. 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 data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $90.75.

Insider Buying and Selling at Dolby Laboratories

In related news, CEO Kevin J. Yeaman sold 6,751 shares of the firm’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $67.24, for a total transaction of $453,937.24. Following the sale, the chief executive officer owned 98,377 shares of the company’s stock, valued at $6,614,869.48. This trade represents a 6.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP Shriram Revankar sold 3,000 shares of Dolby Laboratories stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $65.55, for a total transaction of $196,650.00. Following the completion of the transaction, the senior vice president directly owned 67,435 shares in the company, valued at approximately $4,420,364.25. The trade was a 4.26% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 137,120 shares of company stock worth $9,184,809. 37.93% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Dolby Laboratories during the 2nd quarter valued at approximately $55,030,000. AQR Capital Management LLC boosted its position in Dolby Laboratories by 51.8% during 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 in the last quarter. First Trust Advisors LP grew its position in shares of Dolby Laboratories by 35.2% in the second quarter. First Trust Advisors LP now owns 1,237,443 shares of the electronics maker’s stock valued at $91,893,000 after purchasing an additional 322,063 shares during the period. Pacer Advisors Inc. raised its holdings in shares of Dolby Laboratories by 98.2% during the third quarter. Pacer Advisors Inc. now owns 443,897 shares of the electronics maker’s stock valued at $32,125,000 after acquiring an additional 219,901 shares during the last quarter. Finally, Vanguard Group Inc. raised its stake in Dolby Laboratories by 2.7% in the 3rd quarter. Vanguard Group Inc. now owns 7,756,924 shares of the electronics maker’s stock valued at $561,369,000 after purchasing an additional 203,411 shares during the last quarter. 58.56% of the stock is owned by institutional investors and hedge funds.

Dolby Laboratories Trading Down 2.0%

The business has a fifty day simple moving average of $65.35 and a two-hundred day simple moving average of $69.15. The company has a market cap of $5.81 billion, a PE ratio of 23.16 and a beta of 0.88.

Dolby Laboratories (NYSE:DLB) last posted its quarterly earnings results on Tuesday, November 18th. The electronics maker reported $0.99 earnings per share for the quarter, topping the consensus estimate of $0.70 by $0.29. Dolby Laboratories had a net margin of 18.90% and a return on equity of 11.99%. The firm had revenue of $307.02 million for the quarter, compared to the consensus estimate of $305.76 million. During the same period last year, the firm posted $0.61 earnings per share. The company’s revenue for the quarter was up .7% on a year-over-year basis. Dolby Laboratories has set its FY 2026 guidance at 4.190-4.340 EPS and its Q1 2026 guidance at 0.790-0.940 EPS. Equities analysts expect that Dolby Laboratories will post 2.94 EPS for the current year.

Dolby Laboratories Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Tuesday, December 2nd were given a dividend of $0.36 per share. This represents a $1.44 annualized dividend and a dividend yield of 2.4%. The ex-dividend date of this dividend was Tuesday, December 2nd. This is a positive change from Dolby Laboratories’s previous quarterly dividend of $0.33. Dolby Laboratories’s dividend payout ratio is presently 54.75%.

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.