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

Dolby Laboratories (NYSE:DLB) was downgraded by analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Saturday.

Several other equities analysts have also recently weighed in on DLB. Barrington Research lowered their price objective on shares of Dolby Laboratories from $95.00 to $90.00 and set an “outperform” rating on the stock in a research note on Monday, January 26th. Rosenblatt Securities reaffirmed a “buy” rating and set a $85.00 target price on shares of Dolby Laboratories in a report on Friday. Finally, Weiss Ratings reiterated a “hold (c-)” rating on shares of Dolby Laboratories in a research note on Monday, December 29th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $90.75.

Dolby Laboratories Price Performance

DLB stock opened at $64.19 on Friday. Dolby Laboratories has a 1 year low of $60.14 and a 1 year high of $85.49. The company has a market cap of $6.13 billion, a P/E ratio of 25.88 and a beta of 0.86. The stock’s fifty day moving average price is $65.07 and its 200-day moving average price is $68.80.

Dolby Laboratories (NYSE:DLB) last posted its earnings results on Thursday, January 29th. The electronics maker reported $1.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.99 by $0.07. The company had revenue of $346.71 million for the quarter, compared to the consensus estimate of $341.26 million. Dolby Laboratories had a return on equity of 11.50% and a net margin of 17.97%.Dolby Laboratories’s revenue was down 2.8% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.14 earnings per share. As a group, analysts expect that Dolby Laboratories will post 2.94 earnings per share for the current year.

Insider Activity

In related news, SVP Shriram Revankar sold 3,000 shares of the company’s stock in a transaction on Friday, November 21st. The shares were sold at an average price of $65.55, for a total value of $196,650.00. Following the completion of the transaction, the senior vice president owned 67,435 shares of the company’s stock, valued at approximately $4,420,364.25. This represents a 4.26% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, SVP John D. Couling sold 7,273 shares of the stock in a transaction on Thursday, December 11th. The stock was sold at an average price of $68.75, for a total value of $500,018.75. Following the completion of the sale, the senior vice president owned 108,065 shares of the company’s stock, valued at $7,429,468.75. The trade was a 6.31% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 137,120 shares of company stock valued at $9,184,809. 37.93% of the stock is currently owned by company insiders.

Institutional Trading of Dolby Laboratories

Institutional investors have recently made changes to their positions in the business. Boothbay Fund Management LLC lifted 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 worth $299,000 after purchasing an additional 157 shares in the last quarter. Mitchell & Pahl Private Wealth LLC lifted its holdings in shares of Dolby Laboratories by 1.1% in the third quarter. Mitchell & Pahl Private Wealth LLC now owns 15,733 shares of the electronics maker’s stock worth $1,139,000 after buying an additional 170 shares in the last quarter. Equitable Trust Co. boosted its position in shares of Dolby Laboratories by 3.3% during the second quarter. Equitable Trust Co. now owns 5,567 shares of the electronics maker’s stock worth $413,000 after acquiring an additional 177 shares during the last quarter. Steward Partners Investment Advisory LLC grew its stake in Dolby Laboratories by 13.9% during the second quarter. Steward Partners Investment Advisory LLC now owns 1,587 shares of the electronics maker’s stock valued at $118,000 after acquiring an additional 194 shares in the last quarter. Finally, State of Michigan Retirement System increased its holdings in Dolby Laboratories by 1.4% in the 2nd quarter. State of Michigan Retirement System now owns 14,800 shares of the electronics maker’s stock valued at $1,099,000 after acquiring an additional 200 shares during the last quarter. Hedge funds and other institutional investors own 58.56% of the company’s stock.

Key Stories Impacting Dolby Laboratories

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

• Positive Sentiment: Company raised FY‑2026 and Q2 guidance well above Street estimates (FY EPS 4.30–4.45 vs. consensus ~3.79; Q2 EPS 1.29–1.44). The stronger outlook is the main catalyst supporting the stock today.
• Positive Sentiment: Dolby announced a quarterly dividend of $0.36 per share (yield ~2.3%), which can attract income-oriented investors and support the share price around the ex‑dividend date.
• Positive Sentiment: Rosenblatt reaffirmed a “Buy” rating with an $85 price target, adding analyst support and upside narrative for investors. Benzinga
• Neutral Sentiment: Q1 results beat consensus on EPS ($1.06 vs. ~$0.99) and revenue (~$346.7M vs. ~341M), indicating operational resilience even as some metrics softened. PR Newswire
• Negative Sentiment: Revenue and EPS were down year-over-year (revenue down ~2.8%), driven by weaker licensing, which triggered an after‑hours selloff after the print and remains a near-term risk. Zacks
• Negative Sentiment: Operational and cash-flow pressures were noted (operating profit and net income declined; temporary negative operating cash flow and higher capex flagged by third‑party summaries), which could weigh on near‑term margins and investor sentiment. Quiver Quant

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.