Dolby Laboratories (NYSE:DLB) Stock Rating Cut to “Strong Sell” at Zacks Research

Zacks Research cut shares of Dolby Laboratories (NYSE:DLB) from a hold rating to a strong sell rating in a research report released on Thursday morning,Zacks reports.

Several other analysts also recently commented on the stock. Weiss Ratings raised shares of Dolby Laboratories from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, September 9th. Wall Street Zen downgraded shares of Dolby Laboratories from a “buy” rating to a “hold” rating in a research report on Saturday, August 1st. Finally, Rosenblatt Securities reissued a “buy” rating and set a $85.00 target price on shares of Dolby Laboratories in a research note on Friday, August 28th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus price target of $87.50.

Dolby Laboratories Price Performance

Shares of Dolby Laboratories stock traded down $0.83 on Thursday, hitting $60.00. 512,709 shares of the company’s stock traded hands, compared to its average volume of 841,600. Dolby Laboratories has a one year low of $48.26 and a one year high of $69.95. The company has a fifty day moving average of $60.72 and a two-hundred day moving average of $57.58. The company has a market capitalization of $5.62 billion, a price-to-earnings ratio of 25.53 and a beta of 0.78.

Dolby Laboratories (NYSE:DLB) last issued its earnings results 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. Dolby Laboratories had a return on equity of 11.08% and a net margin of 16.70%. The business had revenue of $305.00 million during the quarter, compared to the consensus estimate of $311.96 million. During the same period in the previous year, the company posted $0.78 earnings per share. The firm’s revenue for the quarter 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 research analysts anticipate that Dolby Laboratories will post 3.23 earnings per share for the current year.

Dolby Laboratories Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, August 19th. Investors of record on Tuesday, August 11th were paid a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend was Tuesday, August 11th. Dolby Laboratories’s dividend payout ratio is 61.28%.

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

Insiders Place Their Bets

In other Dolby Laboratories news, CAO Ryan Nicholson sold 1,348 shares of the firm’s stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $62.04, for a total value of $83,629.92. Following the completion of the sale, the chief accounting officer owned 35,636 shares of the company’s stock, valued at approximately $2,210,857.44. This trade represents a 3.64% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, SVP Shriram Revankar sold 3,000 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $62.71, for a total value of $188,130.00. Following the sale, the senior vice president owned 73,274 shares of the company’s stock, valued at approximately $4,595,012.54. This represents a 3.93% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 28,889 shares of company stock worth $1,749,388. Corporate insiders own 37.93% of the company’s stock.

Institutional Trading of Dolby Laboratories

Several hedge funds have recently bought and sold shares of DLB. Caitong International Asset Management Co. Ltd increased its stake in Dolby Laboratories by 73,900.0% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,480 shares of the electronics maker’s stock valued at $95,000 after purchasing an additional 1,478 shares in the last quarter. Nykredit A S bought a new stake in Dolby Laboratories during the second quarter worth $101,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Dolby Laboratories in the 2nd quarter valued at $216,000. Signet Financial Management LLC purchased a new stake in Dolby Laboratories in the 1st quarter valued at $231,000. Finally, Corient Private Wealth LP purchased a new stake in Dolby Laboratories in the 2nd quarter valued at $234,000. Institutional investors and hedge funds own 58.56% of the company’s stock.

About Dolby Laboratories

Dolby Laboratories, Inc develops audio and imaging technologies for entertainment and communications. The company’s products and intellectual property are used in cinemas, televisions, mobile devices, personal computers, streaming platforms, gaming systems and automobiles to improve sound quality, picture quality and overall viewing experiences.

Dolby’s technology portfolio includes Dolby Atmos immersive audio, Dolby Vision high-dynamic-range imaging, and Dolby Digital and Dolby AC-4 audio formats.