Rosenblatt Securities Reiterates Buy Rating for Dolby Laboratories (NYSE:DLB)

Dolby Laboratories (NYSE:DLB)‘s stock had its “buy” rating reissued by investment analysts at Rosenblatt Securities in a research note issued on Friday,Benzinga reports. They currently have a $85.00 price target on the electronics maker’s stock. Rosenblatt Securities’ target price would suggest a potential upside of 64.44% from the company’s current price.

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

Dolby Laboratories Trading Down 1.6%

Shares of Dolby Laboratories stock opened at $51.69 on Friday. The firm has a market capitalization of $4.89 billion, a PE ratio of 20.43 and a beta of 0.81. Dolby Laboratories has a 12 month low of $48.26 and a 12 month high of $75.80. The business’s 50-day moving average price is $52.21 and its 200-day moving average price is $58.58.

Dolby Laboratories (NYSE:DLB) last issued 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 business had revenue of $305.00 million during the quarter, compared to analyst estimates of $311.96 million. Dolby Laboratories had a return on equity of 11.47% and a net margin of 17.85%.Dolby Laboratories’s revenue for the quarter was down 3.3% on a year-over-year basis. During the same quarter in the prior year, the firm 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. As a group, analysts predict that Dolby Laboratories will post 3.21 earnings per share for the current fiscal year.

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

Insiders Place Their Bets

In related news, SVP Shriram Revankar sold 3,000 shares of Dolby Laboratories stock in a transaction on Friday, May 15th. The shares were sold at an average price of $54.90, for a total value of $164,700.00. Following the sale, 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. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, 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 sale, the senior vice president directly owned 118,727 shares in the company, valued at $6,316,276.40. The trade was a 6.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 47,458 shares of company stock worth $2,639,537. Insiders own 37.93% of the company’s stock.

Hedge Funds Weigh In On Dolby Laboratories

Institutional investors have recently added to or reduced their stakes in the company. Wedge Capital Management L L P NC boosted its holdings in shares of Dolby Laboratories by 53.2% during the 2nd quarter. Wedge Capital Management L L P NC now owns 77,380 shares of the electronics maker’s stock valued at $4,069,000 after acquiring an additional 26,860 shares during the last quarter. Handelsbanken Fonder AB increased its position in Dolby Laboratories by 31.0% during the second quarter. Handelsbanken Fonder AB now owns 23,216 shares of the electronics maker’s stock valued at $1,221,000 after acquiring an additional 5,500 shares during the last quarter. Assenagon Asset Management S.A. grew its stake in shares of Dolby Laboratories by 88.9% during the 2nd quarter. Assenagon Asset Management S.A. now owns 104,202 shares of the electronics maker’s stock valued at $5,479,000 after purchasing an additional 49,044 shares during the period. CX Institutional grew its position in Dolby Laboratories by 14.4% during the second quarter. CX Institutional now owns 12,727 shares of the electronics maker’s stock valued at $669,000 after buying an additional 1,605 shares during the period. Finally, Pacer Advisors Inc. boosted its stake in shares of Dolby Laboratories by 8.0% during the 1st quarter. Pacer Advisors Inc. now owns 516,292 shares of the electronics maker’s stock worth $31,008,000 after acquiring an additional 38,389 shares during the last quarter. Institutional investors own 58.56% of the company’s stock.

Key Stories Impacting Dolby Laboratories

Here are the key news stories impacting Dolby Laboratories this week:

• Positive Sentiment: Dolby reported adjusted EPS of $0.69, exceeding the $0.67 analyst consensus. However, this was down from $0.78 in the prior-year quarter. Dolby Laboratories Q3 Earnings Beat Estimates
• Positive Sentiment: Management raised or reaffirmed an encouraging outlook: fiscal 2026 EPS guidance of $4.25–$4.40 is above the $4.10 consensus, while fourth-quarter revenue guidance of $362 million–$392 million also exceeds expectations. Dolby Laboratories Reports Third Quarter 2026 Financial Results
• Positive Sentiment: The board authorized a $350 million share-repurchase program, potentially covering up to 7% of outstanding shares. Buybacks can support EPS and signal that management considers the shares undervalued.
• Positive Sentiment: Dolby declared a quarterly dividend of $0.36 per share, payable August 19 to shareholders of record August 11, representing an annualized yield of approximately 2.8%.
• Neutral Sentiment: Operating cash flow improved substantially to approximately $167.5 million, and Dolby ended the quarter with about $669 million in cash, strengthening its ability to fund dividends and buybacks.
• Negative Sentiment: Third-quarter revenue declined 3.3% year over year to $305 million and missed estimates near $312 million–$315 million. Lower revenue and profitability remain the main concerns for investors.
• Negative Sentiment: Reported operating profit and net income fell from the prior year, while diluted GAAP EPS was reported at approximately $0.30. Separate reports also noted that Dolby insiders have recorded selling activity without recent open-market purchases, a potentially negative sentiment signal.

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.