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

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

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

Dolby Laboratories Stock Down 0.1%

Dolby Laboratories stock opened at $58.78 on Friday. The firm has a market cap of $5.56 billion, a price-to-earnings ratio of 25.01 and a beta of 0.80. Dolby Laboratories has a 52 week low of $48.26 and a 52 week high of $75.80. The business’s 50-day moving average price is $52.29 and its 200 day moving average price is $58.54.

Dolby Laboratories (NYSE:DLB) last announced its quarterly earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share for the quarter, beating the consensus estimate of $0.67 by $0.02. Dolby Laboratories had a return on equity of 11.08% and a net margin of 16.70%.The company had revenue of $305.00 million during the quarter, compared to analysts’ expectations of $311.96 million. During the same period last year, the business earned $0.78 earnings per share. Dolby Laboratories’s quarterly revenue was down 3.3% on a year-over-year basis. 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. Equities analysts expect that Dolby Laboratories will post 3.21 EPS for the current year.

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

Insiders Place Their Bets

In other news, CMO Todd Pendleton sold 11,876 shares of the business’s stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $54.55, for a total value of $647,835.80. Following the completion of the sale, the chief marketing officer directly 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, SVP John D. Couling sold 7,667 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The shares were sold at an average price of $53.20, for a total value of $407,884.40. Following the completion of the sale, the senior vice president owned 118,727 shares of the company’s stock, valued at $6,316,276.40. This trade represents a 6.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 42,770 shares of company stock valued at $2,365,430 in the last three months. 37.93% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Dolby Laboratories

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

Trending Headlines about Dolby Laboratories

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

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.