Rosenblatt Securities Reiterates Buy Rating for Dolby Laboratories (NYSE:DLB)

Dolby Laboratories (NYSE:DLB)‘s stock had its “buy” rating restated by investment analysts at Rosenblatt Securities in a research note issued on Friday,Benzinga reports. They presently have a $85.00 price target on the electronics maker’s stock. Rosenblatt Securities’ target price points to a potential upside of 64.44% from the company’s current price.

A number of other research analysts have also commented on the company. Weiss Ratings restated a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Barrington Research restated an “outperform” rating and set a $90.00 target price on shares of Dolby Laboratories in a report on Monday, June 15th. Finally, Wall Street Zen upgraded shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a research report on Saturday, May 30th. Three investment 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, Dolby Laboratories presently has an average rating of “Moderate Buy” and a consensus price target of $90.75.

Dolby Laboratories Stock Down 1.6%

Shares of DLB stock opened at $51.69 on Friday. Dolby Laboratories has a 12 month low of $48.26 and a 12 month high of $75.80. The company has a market cap of $4.89 billion, a PE ratio of 20.43 and a beta of 0.81. The business’s 50 day moving average is $52.21 and its two-hundred day moving average is $58.58.

Dolby Laboratories (NYSE:DLB) last issued its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.67 by $0.02. The business had revenue of $305.00 million during the quarter, compared to analysts’ expectations of $311.96 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 down 3.3% on a year-over-year basis. During the same period in the previous 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, equities analysts expect that Dolby Laboratories will post 3.21 EPS for the current fiscal year.

Dolby Laboratories announced that its Board of Directors has approved a stock repurchase program on Thursday, July 30th that authorizes the company to buyback $350.00 million in outstanding shares. This buyback authorization authorizes the electronics maker to repurchase up to 7% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its stock is undervalued.

Insider Activity at Dolby Laboratories

In related news, SVP John D. Couling sold 7,667 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $53.20, for a total transaction of $407,884.40. Following the completion of the transaction, the senior vice president directly owned 118,727 shares in the company, valued at approximately $6,316,276.40. This trade represents a 6.07% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CMO Todd Pendleton sold 11,876 shares of Dolby Laboratories stock in a transaction 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 completion of the sale, the chief marketing officer 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. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 47,458 shares of company stock valued at $2,639,537 in the last quarter. 37.93% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Boothbay Fund Management LLC grew its position in shares of Dolby Laboratories by 4.1% in the 2nd quarter. Boothbay Fund Management LLC now owns 4,020 shares of the electronics maker’s stock valued at $299,000 after buying an additional 157 shares during the last quarter. Covestor Ltd raised its position in Dolby Laboratories by 6.0% in the 4th quarter. Covestor Ltd now owns 3,088 shares of the electronics maker’s stock valued at $198,000 after buying an additional 175 shares during the last quarter. Fifth Third Bancorp grew its position in Dolby Laboratories by 34.7% in 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 in the last quarter. State of Michigan Retirement System lifted its holdings in Dolby Laboratories by 1.4% during the first quarter. State of Michigan Retirement System now owns 14,700 shares of the electronics maker’s stock worth $883,000 after acquiring an additional 200 shares during the period. Finally, Raymond James Financial Inc. grew its position in Dolby Laboratories by 1.0% during the second quarter. Raymond James Financial Inc. now owns 24,344 shares of the electronics maker’s stock valued at $1,808,000 after buying an additional 235 shares during the period. 58.56% of the stock is owned by institutional investors and hedge funds.

More Dolby Laboratories News

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

• Positive Sentiment: Dolby reported adjusted EPS of $0.69, exceeding the $0.67 analyst consensus. However, this was down from $0.78 in the prior-year quarter. Dolby Laboratories Q3 Earnings Beat Estimates
• Positive Sentiment: Management raised or reaffirmed an encouraging outlook: fiscal 2026 EPS guidance of $4.25–$4.40 is above the $4.10 consensus, while fourth-quarter revenue guidance of $362 million–$392 million also exceeds expectations. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Positive Sentiment: The board authorized a $350 million share-repurchase program, potentially covering up to 7% of outstanding shares. Buybacks can support EPS and signal that management considers the shares undervalued.
• Positive Sentiment: Dolby declared a quarterly dividend of $0.36 per share, payable August 19 to shareholders of record August 11, representing an annualized yield of approximately 2.8%.
• Neutral Sentiment: Operating cash flow improved substantially to approximately $167.5 million, and Dolby ended the quarter with about $669 million in cash, strengthening its ability to fund dividends and buybacks.
• Negative Sentiment: Third-quarter revenue declined 3.3% year over year to $305 million and missed estimates near $312 million–$315 million. Lower revenue and profitability remain the main concerns for investors.
• Negative Sentiment: Reported operating profit and net income fell from the prior year, while diluted GAAP EPS was reported at approximately $0.30. Separate reports also noted that Dolby insiders have recorded selling activity without recent open-market purchases, a potentially negative sentiment signal.

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.