Dolby Laboratories (NYSE:DLB) Shares Gap Up Following Dividend Announcement

Dolby Laboratories, Inc. (NYSE:DLB)’s share price gapped up prior to trading on Wednesday following a dividend announcement from the company. The stock had previously closed at $70.91, but opened at $75.50. Dolby Laboratories shares last traded at $77.89, with a volume of 199,003 shares trading hands.

The newly announced dividend which will be paid on Tuesday, December 10th. Investors of record on Tuesday, December 3rd will be issued a dividend of $0.33 per share. This represents a $1.32 dividend on an annualized basis and a yield of 1.61%. This is a positive change from Dolby Laboratories’s previous quarterly dividend of $0.30. The ex-dividend date is Tuesday, December 3rd. Dolby Laboratories’s dividend payout ratio (DPR) is presently 54.79%.

Analyst Upgrades and Downgrades

DLB has been the subject of a number of analyst reports. Barrington Research reissued an “outperform” rating and issued a $100.00 price target on shares of Dolby Laboratories in a report on Wednesday. Rosenblatt Securities raised their price target on shares of Dolby Laboratories from $98.00 to $100.00 and gave the stock a “buy” rating in a research report on Wednesday. Finally, StockNews.com raised shares of Dolby Laboratories from a “buy” rating to a “strong-buy” rating in a report on Monday.

Dolby Laboratories Price Performance

The firm has a market capitalization of $7.82 billion, a PE ratio of 37.45 and a beta of 0.98. The company has a fifty day moving average of $73.94 and a 200-day moving average of $76.05.

Dolby Laboratories announced that its board has authorized a share buyback program on Wednesday, August 7th that allows the company to buyback $350.00 million in outstanding shares. This buyback authorization allows the electronics maker to reacquire up to 5% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling at Dolby Laboratories

In related news, CEO Kevin J. Yeaman sold 28,512 shares of the company’s stock in a transaction dated Tuesday, October 15th. The stock was sold at an average price of $74.12, for a total value of $2,113,309.44. Following the completion of the sale, the chief executive officer now owns 83,721 shares in the company, valued at approximately $6,205,400.52. This represents a 25.40 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Company insiders own 39.54% of the company’s stock.

Hedge Funds Weigh In On Dolby Laboratories

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Blue Trust Inc. boosted its holdings in shares of Dolby Laboratories by 398.8% during the second quarter. Blue Trust Inc. now owns 414 shares of the electronics maker’s stock worth $35,000 after acquiring an additional 331 shares during the period. Point72 Hong Kong Ltd bought a new stake in shares of Dolby Laboratories during the 2nd quarter valued at about $37,000. GAMMA Investing LLC increased its stake in Dolby Laboratories by 64.6% in the second quarter. GAMMA Investing LLC now owns 489 shares of the electronics maker’s stock valued at $39,000 after purchasing an additional 192 shares in the last quarter. Whittier Trust Co. of Nevada Inc. raised its position in shares of Dolby Laboratories by 192.4% during the second quarter. Whittier Trust Co. of Nevada Inc. now owns 576 shares of the electronics maker’s stock worth $46,000 after purchasing an additional 379 shares during the period. Finally, First Horizon Advisors Inc. raised its holdings in shares of Dolby Laboratories by 22.7% in the third quarter. First Horizon Advisors Inc. now owns 790 shares of the electronics maker’s stock valued at $60,000 after purchasing an additional 146 shares during the last quarter. 58.56% of the stock is owned by institutional investors and hedge funds.

Dolby Laboratories Company Profile

Dolby Laboratories, Inc creates audio and imaging technologies that transform entertainment at the cinema, DTV transmissions and devices, mobile devices, OTT video and music services, home entertainment devices, and automobiles. The company develops and licenses its audio technologies, such as AAC & HE-AAC, a digital audio codec solution used for a range of media applications; AVC, a digital video codec with high bandwidth efficiency used in various media devices; Dolby AC-4, a digital audio coding technology that delivers new audio experiences to a range of playback devices; and Dolby Atmos technology for cinema and various media devices.