Dolby Laboratories (NYSE:DLB) Reaches New 1-Year Low – Should You Sell?

Dolby Laboratories (NYSE:DLB) shares reached a new 52-week low during trading on Thursday . The stock traded as low as $51.91 and last traded at $52.5180, with a volume of 18730 shares trading hands. The stock had previously closed at $52.89.

Analyst Upgrades and Downgrades

DLB has been the topic of several analyst reports. Rosenblatt Securities reissued a “buy” rating and set a $85.00 price target on shares of Dolby Laboratories in a research report on Thursday. Barrington Research reissued an “outperform” rating and set a $90.00 price target on shares of Dolby Laboratories in a research report on Monday, April 27th. Wall Street Zen raised shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a research report on Saturday, May 30th. Finally, Weiss Ratings reissued a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Friday, March 27th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $90.75.

Dolby Laboratories Trading Down 1.1%

The company has a market capitalization of $4.95 billion, a price-to-earnings ratio of 20.72 and a beta of 0.81. The firm’s 50 day moving average price is $58.69 and its two-hundred day moving average price is $62.38.

Dolby Laboratories (NYSE:DLB) last released its quarterly earnings data on Thursday, April 30th. The electronics maker reported $1.37 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.06. The company had revenue of $395.63 million for the quarter, compared to analyst estimates of $385.80 million. Dolby Laboratories had a net margin of 17.85% and a return on equity of 11.47%. Dolby Laboratories’s revenue for the quarter was up 7.0% compared to the same quarter last year. During the same period in the previous year, the business earned $1.34 EPS. 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. As a group, equities research analysts predict that Dolby Laboratories will post 3.21 EPS for the current year.

Dolby Laboratories Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 20th. Stockholders of record on Tuesday, May 12th were paid a dividend of $0.36 per share. The ex-dividend date was Tuesday, May 12th. This represents a $1.44 annualized dividend and a dividend yield of 2.8%. Dolby Laboratories’s payout ratio is currently 56.92%.

Insider Activity

In related news, CMO Todd Pendleton sold 11,876 shares of the company’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $54.55, for a total value of $647,835.80. Following the transaction, the chief marketing officer owned 41,480 shares in the company, valued at approximately $2,262,734. This represents a 22.26% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO Robert J. Park sold 4,895 shares of the company’s 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 owned 81,490 shares in the company, valued at approximately $4,618,853.20. This trade represents a 5.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 39,791 shares of company stock valued at $2,231,653 over the last quarter. 37.93% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. Hantz Financial Services Inc. grew its stake in Dolby Laboratories by 166.7% in the 3rd quarter. Hantz Financial Services Inc. now owns 352 shares of the electronics maker’s stock valued at $25,000 after buying an additional 220 shares during the last quarter. Rothschild Investment LLC grew its stake in Dolby Laboratories by 4,046.7% in the 3rd quarter. Rothschild Investment LLC now owns 622 shares of the electronics maker’s stock valued at $45,000 after buying an additional 607 shares during the last quarter. Fifth Third Bancorp grew its stake in Dolby Laboratories by 34.7% in the 4th quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker’s stock valued at $48,000 after buying an additional 192 shares during the last quarter. Optiver Holding B.V. grew its stake in Dolby Laboratories by 7,955.6% in the 3rd quarter. Optiver Holding B.V. now owns 725 shares of the electronics maker’s stock valued at $52,000 after buying an additional 716 shares during the last quarter. Finally, Aquatic Capital Management LLC acquired a new position in Dolby Laboratories in the 3rd quarter valued at about $56,000. Institutional investors and hedge funds own 58.56% of the company’s stock.

Dolby Laboratories Company 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.