Dolby Laboratories’ (DLB) Buy Rating Reaffirmed at Rosenblatt Securities

Rosenblatt Securities reiterated their buy rating on shares of Dolby Laboratories (NYSE:DLB) in a research note published on Friday,Benzinga reports. Rosenblatt Securities currently has a $85.00 price target on the electronics maker’s stock.

Other analysts also recently issued research reports about the stock. Barrington Research reiterated an “outperform” rating and issued a $90.00 price objective on shares of Dolby Laboratories in a report on Monday, June 15th. Wall Street Zen raised shares of Dolby Laboratories from a “hold” rating to a “buy” rating in a research note on Saturday, May 30th. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Dolby Laboratories in a report on Wednesday, June 24th. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $90.75.

Dolby Laboratories Stock Up 13.5%

Dolby Laboratories stock opened at $58.78 on Friday. Dolby Laboratories has a 52-week low of $48.26 and a 52-week high of $75.80. The firm has a market capitalization of $5.56 billion, a price-to-earnings ratio of 25.01 and a beta of 0.81. The company has a fifty day simple moving average of $52.29 and a 200-day simple moving average of $58.58.

Dolby Laboratories (NYSE:DLB) last issued its earnings results on Thursday, July 30th. The electronics maker reported $0.69 EPS for the quarter, beating analysts’ consensus estimates of $0.67 by $0.02. The business had revenue of $305.00 million during the quarter, compared to analysts’ expectations of $311.96 million. Dolby Laboratories had a net margin of 16.70% and a return on equity of 11.06%. The company’s quarterly revenue was down 3.3% compared to the same quarter last year. During the same period in the prior year, the business earned $0.78 earnings per share. 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. On average, research analysts anticipate that Dolby Laboratories will post 3.21 EPS for the current fiscal year.

Dolby Laboratories announced that its Board of Directors has initiated a share buyback plan on Thursday, July 30th that permits the company to repurchase $350.00 million in shares. This repurchase authorization permits the electronics maker to buy up to 7% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

Dolby Laboratories Dividend Announcement

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

Insider Activity

In other Dolby Laboratories news, SVP John D. Couling sold 7,667 shares of Dolby Laboratories stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $53.20, for a total transaction of $407,884.40. Following the transaction, the senior vice president directly owned 118,727 shares of the company’s stock, valued at $6,316,276.40. The trade was a 6.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Shriram Revankar sold 3,000 shares of the business’s stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $54.90, for a total transaction of $164,700.00. Following the completion of the transaction, the senior vice president owned 80,603 shares in the company, valued at $4,425,104.70. The trade was a 3.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 47,458 shares of company stock valued at $2,639,537 in the last ninety days. 37.93% of the stock is currently owned by company insiders.

Institutional Trading of Dolby Laboratories

Several institutional investors have recently made changes to their positions in DLB. Fifth Third Bancorp grew its position in Dolby Laboratories by 34.7% in the fourth quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker’s stock worth $48,000 after acquiring an additional 192 shares during the period. Aquatic Capital Management LLC acquired a new stake in Dolby Laboratories during the third quarter worth $56,000. iSAM Funds UK Ltd purchased a new stake in Dolby Laboratories in the third quarter valued at $68,000. Quarry LP raised its position in 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 purchasing an additional 1,115 shares during the period. Finally, Farther Finance Advisors LLC lifted its stake in shares of Dolby Laboratories by 48.4% in the 4th quarter. Farther Finance Advisors LLC now owns 1,232 shares of the electronics maker’s stock valued at $79,000 after purchasing an additional 402 shares during the last quarter. Hedge funds and other institutional investors own 58.56% of the company’s stock.

Key Headlines Impacting 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

Dolby Laboratories Company Profile

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.