Dolby Laboratories (NYSE:DLB) Hits New 12-Month Low – Time to Sell?

Dolby Laboratories (NYSE:DLB)’s stock price reached a new 52-week low during trading on Thursday . The stock traded as low as $63.16 and last traded at $63.3640, with a volume of 78359 shares changing hands. The stock had previously closed at $64.45.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Barrington Research dropped their price objective on shares of Dolby Laboratories from $100.00 to $95.00 and set an “outperform” rating on the stock in a report on Wednesday, November 19th. Weiss Ratings reissued a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Monday, December 29th. Wall Street Zen upgraded Dolby Laboratories from a “hold” rating to a “buy” rating in a research note on Monday. Finally, Rosenblatt Securities cut their price target on Dolby Laboratories from $95.00 to $85.00 and set a “buy” rating for the company in a report on Wednesday, November 19th. Three research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to data from MarketBeat, Dolby Laboratories currently has a consensus rating of “Moderate Buy” and a consensus price target of $92.00.

Dolby Laboratories Stock Down 1.7%

The company has a market capitalization of $6.05 billion, a price-to-earnings ratio of 24.17 and a beta of 0.88. The business has a fifty day simple moving average of $66.03 and a two-hundred day simple moving average of $70.27.

Dolby Laboratories (NYSE:DLB) last posted its earnings results on Tuesday, November 18th. The electronics maker reported $0.99 EPS for the quarter, topping the consensus estimate of $0.70 by $0.29. Dolby Laboratories had a return on equity of 11.99% and a net margin of 18.90%.The business had revenue of $307.02 million during the quarter, compared to the consensus estimate of $305.76 million. During the same quarter last year, the company earned $0.61 EPS. Dolby Laboratories’s revenue was up .7% on a year-over-year basis. Dolby Laboratories has set its FY 2026 guidance at 4.190-4.340 EPS and its Q1 2026 guidance at 0.790-0.940 EPS. As a group, equities analysts predict that Dolby Laboratories will post 2.94 earnings per share for the current fiscal year.

Dolby Laboratories Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 10th. Stockholders of record on Tuesday, December 2nd were issued a $0.36 dividend. This represents a $1.44 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Tuesday, December 2nd. This is a positive change from Dolby Laboratories’s previous quarterly dividend of $0.33. Dolby Laboratories’s payout ratio is currently 54.75%.

Insider Activity

In other news, SVP John D. Couling sold 7,273 shares of Dolby Laboratories stock in a transaction that occurred on Thursday, December 11th. The shares were sold at an average price of $68.75, for a total value of $500,018.75. Following the completion of the transaction, the senior vice president owned 108,065 shares in the company, valued at approximately $7,429,468.75. The trade was a 6.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Kevin J. Yeaman sold 36,699 shares of the stock in a transaction that occurred on Monday, November 24th. The stock was sold at an average price of $66.91, for a total value of $2,455,530.09. Following the sale, the chief executive officer owned 114,725 shares in the company, valued at approximately $7,676,249.75. This trade represents a 24.24% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 162,120 shares of company stock valued at $10,906,559. Company insiders own 37.93% of the company’s stock.

Hedge Funds Weigh In On Dolby Laboratories

Institutional investors have recently bought and sold shares of the business. Vanguard Group Inc. grew its holdings in shares of Dolby Laboratories by 2.7% during the third quarter. Vanguard Group Inc. now owns 7,756,924 shares of the electronics maker’s stock worth $561,369,000 after purchasing an additional 203,411 shares during the last quarter. State Street Corp lifted its position in Dolby Laboratories by 8.7% during the 2nd quarter. State Street Corp now owns 2,261,059 shares of the electronics maker’s stock worth $167,906,000 after buying an additional 180,072 shares in the last quarter. AQR Capital Management LLC grew its holdings in Dolby Laboratories by 51.8% during the 2nd quarter. AQR Capital Management LLC now owns 1,736,260 shares of the electronics maker’s stock worth $128,935,000 after acquiring an additional 592,282 shares during the last quarter. Geode Capital Management LLC grew its holdings in Dolby Laboratories by 2.0% during the 2nd quarter. Geode Capital Management LLC now owns 1,556,571 shares of the electronics maker’s stock worth $116,159,000 after acquiring an additional 30,057 shares during the last quarter. Finally, First Trust Advisors LP increased its position in Dolby Laboratories by 22.7% in the 3rd quarter. First Trust Advisors LP now owns 1,518,657 shares of the electronics maker’s stock valued at $109,905,000 after acquiring an additional 281,214 shares in the last quarter. Institutional investors own 58.56% of the company’s stock.

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.