Dolby Laboratories (NYSE:DLB) Downgraded by Wall Street Zen to Hold

Wall Street Zen downgraded shares of Dolby Laboratories (NYSE:DLB) from a buy rating to a hold rating in a research report sent to investors on Saturday.

Other equities research analysts have also recently issued reports about the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Wednesday, June 24th. Rosenblatt Securities restated a “buy” rating and set a $85.00 price target on shares of Dolby Laboratories in a research note on Friday. Finally, Barrington Research restated an “outperform” rating and set a $90.00 price target on shares of Dolby Laboratories in a research note on Monday, June 15th. Three research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $90.75.

Dolby Laboratories Trading Up 13.5%

Shares of DLB stock opened at $58.78 on Friday. The business’s fifty day simple moving average is $52.29 and its 200-day simple moving average is $58.58. The company has a market cap of $5.56 billion, a PE ratio of 25.01 and a beta of 0.81. Dolby Laboratories has a 12-month low of $48.26 and a 12-month high of $75.80.

Dolby Laboratories (NYSE:DLB) last issued its quarterly earnings data on Thursday, July 30th. The electronics maker reported $0.69 EPS for the quarter, beating the consensus estimate of $0.67 by $0.02. The firm had revenue of $305.00 million during the quarter, compared to analyst estimates of $311.96 million. Dolby Laboratories had a return on equity of 11.06% and a net margin of 16.70%.The business’s revenue for the quarter was down 3.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.78 EPS. 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. On average, equities analysts forecast that Dolby Laboratories will post 3.21 earnings per share for the current year.

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

Dolby Laboratories Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th will be paid a $0.36 dividend. The ex-dividend date is Tuesday, August 11th. This represents a $1.44 dividend on an annualized basis and a yield of 2.4%. Dolby Laboratories’s dividend payout ratio (DPR) is 61.28%.

Insider Transactions at Dolby Laboratories

In other Dolby Laboratories news, SVP Shriram Revankar sold 3,000 shares of the business’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $54.90, for a total transaction of $164,700.00. Following the sale, the senior vice president owned 80,603 shares in the company, valued at approximately $4,425,104.70. The trade was a 3.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Robert J. Park sold 4,895 shares of the 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 completion of the transaction, the chief financial officer directly owned 81,490 shares in the company, valued at $4,618,853.20. This represents a 5.67% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 47,458 shares of company stock worth $2,639,537. 37.93% of the stock is owned by insiders.

Institutional Investors Weigh In On Dolby Laboratories

A number of large investors have recently bought and sold shares of DLB. Royal Bank of Canada lifted its stake in Dolby Laboratories by 3.5% during the 1st quarter. Royal Bank of Canada now owns 68,367 shares of the electronics maker’s stock valued at $5,491,000 after acquiring an additional 2,298 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of Dolby Laboratories by 218.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 249,574 shares of the electronics maker’s stock valued at $20,043,000 after acquiring an additional 171,288 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of Dolby Laboratories by 5.6% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 238,216 shares of the electronics maker’s stock worth $19,131,000 after acquiring an additional 12,598 shares during the period. Focus Partners Wealth acquired a new stake in shares of Dolby Laboratories in the first quarter worth $390,000. Finally, EverSource Wealth Advisors LLC raised its holdings in shares of Dolby Laboratories by 273.3% during the second quarter. EverSource Wealth Advisors LLC now owns 2,598 shares of the electronics maker’s stock worth $193,000 after purchasing an additional 1,902 shares during the last quarter. Hedge funds and other institutional investors own 58.56% of the company’s stock.

Dolby Laboratories News Roundup

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

• Positive Sentiment: Adjusted earnings beat expectations: Dolby reported fiscal third-quarter adjusted EPS of $0.69, above the $0.67 consensus estimate. Lower operating expenses helped offset weaker revenue. Dolby’s Q3 Earnings Beat Estimates on Lower Operating Expenses
• Positive Sentiment: Upbeat forward outlook: Fiscal fourth-quarter revenue guidance of $362 million to $392 million exceeded the roughly $351 million analyst estimate, while full-year EPS guidance of $4.25 to $4.40 topped the $4.10 consensus. Management cited momentum in video licensing, automotive applications, and new device categories. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Positive Sentiment: $350 million stock-repurchase authorization: Dolby’s board approved a plan to repurchase up to 7% of outstanding shares, signaling management’s view that the stock may be undervalued and potentially supporting per-share results. Dolby Laboratories Share Repurchase Plan
• Positive Sentiment: Dividend and analyst support: Dolby declared a quarterly dividend of $0.36 per share, representing an approximate 2.5% annualized yield. Rosenblatt Securities reaffirmed its Buy rating and set an $85 price target, well above the recent trading level. Dolby Laboratories Dividend Signals Confidence
• Neutral Sentiment: Cash generation remained strong: Operating cash flow rose to $167.5 million, and Dolby ended the quarter with $669.4 million in cash, providing flexibility for buybacks, dividends, and investment.
• Negative Sentiment: Revenue and reported profitability declined: Third-quarter revenue fell 3.3% year over year to $305 million and missed estimates near $312 million. Reported net income and diluted GAAP EPS also declined from the prior year, reflecting softer device sales and continued pressure in some business areas. Dolby Laboratories Fiscal Q3 Adjusted Earnings, Revenue Fall

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.