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

Dolby Laboratories (NYSE:DLB) was downgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a report released on Thursday, Zacks reports.

DLB has been the subject of several other reports. Wall Street Zen lowered Dolby Laboratories from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Weiss Ratings upgraded Dolby Laboratories from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Wednesday, September 9th. Finally, Rosenblatt Securities reaffirmed a “buy” rating and set a $85.00 target price on shares of Dolby Laboratories in a research report on Friday, August 28th. Two investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $87.50.

Dolby Laboratories Stock Performance

DLB traded down $0.83 during mid-day trading on Thursday, reaching $60.00. 512,709 shares of the stock were exchanged, compared to its average volume of 841,600. The stock has a market capitalization of $5.62 billion, a PE ratio of 25.53 and a beta of 0.78. The company has a 50 day moving average price of $60.72 and a two-hundred day moving average price of $57.58. Dolby Laboratories has a 1 year low of $48.26 and a 1 year high of $69.95.

Dolby Laboratories (NYSE:DLB) last posted its earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share (EPS) for the quarter, topping 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 net margin of 16.70% and a return on equity of 11.08%. The business’s revenue 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. Sell-side analysts expect that Dolby Laboratories will post 3.23 EPS for the current fiscal year.

Dolby Laboratories announced that its Board of Directors has approved a share buyback plan on Thursday, July 30th that allows the company to buy back $350.00 million in shares. This buyback authorization allows the electronics maker to purchase up to 7% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Dolby Laboratories

In other Dolby Laboratories news, SVP Shriram Revankar sold 3,000 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $62.71, for a total transaction of $188,130.00. Following the sale, the senior vice president owned 73,274 shares in the company, valued at $4,595,012.54. This represents a 3.93% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Ryan Nicholson sold 1,183 shares of the firm’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $65.28, for a total value of $77,226.24. Following the completion of the transaction, the chief accounting officer directly owned 34,453 shares of the company’s stock, valued at $2,249,091.84. The trade was a 3.32% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 28,889 shares of company stock valued at $1,749,388 in the last 90 days. 37.93% of the stock is currently owned by company insiders.

Institutional Trading of Dolby Laboratories

A number of institutional investors have recently added to or reduced their stakes in DLB. Bank of New York Mellon Corp bought a new position in Dolby Laboratories in the 2nd quarter worth about $253,289,000. First Trust Advisors LP increased its position in shares of Dolby Laboratories by 19.9% during the first quarter. First Trust Advisors LP now owns 2,254,933 shares of the electronics maker’s stock valued at $135,431,000 after buying an additional 374,405 shares during the period. Arrowstreet Capital Limited Partnership increased its position in shares of Dolby Laboratories by 507.5% during the first quarter. Arrowstreet Capital Limited Partnership now owns 124,509 shares of the electronics maker’s stock valued at $7,478,000 after buying an additional 104,014 shares during the period. Dimensional Fund Advisors LP increased its position in shares of Dolby Laboratories by 6.8% during the first quarter. Dimensional Fund Advisors LP now owns 1,321,407 shares of the electronics maker’s stock valued at $79,357,000 after buying an additional 83,835 shares during the period. Finally, Sei Investments Co. lifted its holdings in shares of Dolby Laboratories by 26.4% in the first quarter. Sei Investments Co. now owns 308,307 shares of the electronics maker’s stock worth $18,516,000 after buying an additional 64,306 shares in the last quarter. Hedge funds and other institutional investors own 58.56% of the company’s stock.

Dolby Laboratories Company Profile

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.