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

Dolby Laboratories (NYSE:DLB)’s stock price hit a new 52-week low during trading on Thursday . The stock traded as low as $50.71 and last traded at $51.0610, with a volume of 870386 shares changing hands. The stock had previously closed at $52.59.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently weighed in on DLB shares. Rosenblatt Securities reissued a “buy” rating and set a $85.00 price target on shares of Dolby Laboratories in a research report on Thursday, June 11th. Barrington Research reaffirmed an “outperform” rating and issued a $90.00 target price on shares of Dolby Laboratories in a research note on Monday, June 15th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Dolby Laboratories in a report on Wednesday, June 24th. Finally, Wall Street Zen raised Dolby Laboratories from a “hold” rating to a “buy” rating in a research note on Saturday, May 30th. Three 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 stock has a consensus rating of “Moderate Buy” and an average price target of $90.75.

Dolby Laboratories Stock Performance

The stock has a market cap of $4.84 billion, a price-to-earnings ratio of 20.22 and a beta of 0.81. The business has a 50-day simple moving average of $55.29 and a two-hundred day simple moving average of $60.65.

Dolby Laboratories (NYSE:DLB) last released its earnings results on Thursday, April 30th. The electronics maker reported $1.37 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.06. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.The business had revenue of $395.63 million for the quarter, compared to analyst estimates of $385.80 million. During the same quarter in the prior year, the company posted $1.34 earnings per share. Dolby Laboratories’s revenue was up 7.0% on a year-over-year basis. 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. On average, analysts expect that Dolby Laboratories will post 3.21 earnings per share for the current fiscal year.

Dolby Laboratories Dividend Announcement

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

Insider Activity

In other news, 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 value of $277,448.60. Following the sale, the chief financial officer directly owned 81,490 shares of the company’s stock, valued at approximately $4,618,853.20. This represents a 5.67% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CMO Todd Pendleton sold 11,876 shares of the firm’s stock in a transaction dated 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 of the company’s stock, valued at $2,262,734. This trade represents 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 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 Investors Weigh In On Dolby Laboratories

A number of large investors have recently added to or reduced their stakes in the business. Boothbay Fund Management LLC raised its holdings in 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 acquiring an additional 157 shares in the last quarter. Covestor Ltd increased its position in shares of Dolby Laboratories by 6.0% in the fourth quarter. Covestor Ltd now owns 3,088 shares of the electronics maker’s stock worth $198,000 after purchasing an additional 175 shares during the period. Fifth Third Bancorp increased its position in shares of Dolby Laboratories by 34.7% in the fourth quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker’s stock worth $48,000 after purchasing an additional 192 shares during the period. State of Michigan Retirement System raised its stake in Dolby Laboratories by 1.4% in the first quarter. State of Michigan Retirement System now owns 14,700 shares of the electronics maker’s stock valued at $883,000 after purchasing an additional 200 shares in the last quarter. Finally, Gabelli Funds LLC lifted its position in Dolby Laboratories by 0.4% during the third quarter. Gabelli Funds LLC now owns 49,143 shares of the electronics maker’s stock worth $3,556,000 after purchasing an additional 202 shares during the period. Institutional investors own 58.56% 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.