Key Points
- Insider sale: Dolby Laboratories CAO Ryan Nicholson sold 357 shares for approximately $21,645, reducing his direct holdings by 0.96% to 36,984 shares.
- Quarterly results: Dolby reported adjusted earnings of $0.69 per share, exceeding estimates by $0.02, while revenue of $305 million fell short of expectations and declined 3.3% year over year.
- Shareholder returns: The company authorized a $350 million share-repurchase program covering up to 7% of outstanding shares and declared a quarterly dividend of $0.36 per share, representing a 2.4% yield.
Dolby Laboratories (NYSE:DLB - Get Free Report) CAO Ryan Nicholson sold 357 shares of the stock in a transaction that occurred on Tuesday, August 4th. The shares were sold at an average price of $60.63, for a total value of $21,644.91. Following the completion of the sale, the chief accounting officer directly owned 36,984 shares of the company's stock, valued at approximately $2,242,339.92. This represents a 0.96% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website.
Dolby Laboratories Stock Performance
NYSE DLB opened at $60.87 on Friday. The stock's fifty day moving average is $52.70 and its two-hundred day moving average is $58.47. The firm has a market capitalization of $5.76 billion, a P/E ratio of 25.90 and a beta of 0.80. Dolby Laboratories has a fifty-two week low of $48.26 and a fifty-two week high of $75.66.
Dolby Laboratories (NYSE:DLB - Get Free Report) last issued its earnings results on Thursday, July 30th. The electronics maker reported $0.69 earnings per share (EPS) 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 last year, the company earned $0.78 EPS. The company'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. As a group, sell-side analysts forecast that Dolby Laboratories will post 3.21 EPS for the current year.
Dolby Laboratories declared that its Board of Directors has approved a share repurchase program on Thursday, July 30th that permits the company to buyback $350.00 million in outstanding shares. This buyback authorization permits the electronics maker to purchase up to 7% of its shares through open market purchases. Shares buyback programs are usually a sign that the company's board of directors believes its shares are undervalued.
Dolby Laboratories Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Wednesday, August 19th. Shareholders of record on Tuesday, August 11th will be paid a dividend of $0.36 per share. The ex-dividend date of this dividend is Tuesday, August 11th. This represents a $1.44 dividend on an annualized basis and a yield of 2.4%. Dolby Laboratories's payout ratio is 61.28%.
Wall Street Analysts Forecast Growth
Several analysts have recently weighed in on the stock. Barrington Research reissued an "outperform" rating and issued a $90.00 price target on shares of Dolby Laboratories in a research note on Monday, June 15th. Rosenblatt Securities reiterated a "buy" rating and issued a $85.00 price objective on shares of Dolby Laboratories in a report on Friday, July 31st. Weiss Ratings reiterated a "hold (c-)" rating on shares of Dolby Laboratories in a research report on Wednesday, June 24th. Finally, Wall Street Zen downgraded Dolby Laboratories from a "buy" rating to a "hold" rating in a research report on Saturday, August 1st. 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 currently has a consensus rating of "Moderate Buy" and an average price target of $90.75.
View Our Latest Report on DLB
Hedge Funds Weigh In On Dolby Laboratories
Several large investors have recently made changes to their positions in the stock. Fifth Third Bancorp increased its holdings in Dolby Laboratories by 34.7% in the 4th quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker's stock valued at $48,000 after purchasing an additional 192 shares during the last quarter. Aquatic Capital Management LLC purchased a new position in shares of Dolby Laboratories during the third quarter worth $56,000. iSAM Funds UK Ltd purchased a new position in shares of Dolby Laboratories during the third quarter worth $68,000. Quarry LP grew its stake in shares of Dolby Laboratories by 1,486.7% in the fourth quarter. Quarry LP now owns 1,190 shares of the electronics maker's stock valued at $76,000 after buying an additional 1,115 shares in the last quarter. Finally, Farther Finance Advisors LLC grew its stake in shares of Dolby Laboratories by 48.4% in the fourth quarter. Farther Finance Advisors LLC now owns 1,232 shares of the electronics maker's stock valued at $79,000 after buying an additional 402 shares in the last quarter. 58.56% of the stock is currently owned by institutional investors and hedge funds.
Dolby Laboratories Company Profile
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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.
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