Dolby Laboratories (NYSE:DLB) Reaches New 52-Week Low – What’s Next?

Dolby Laboratories (NYSE:DLB) shares reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $58.13 and last traded at $58.6210, with a volume of 697088 shares. The stock had previously closed at $58.87.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. Rosenblatt Securities restated a “buy” rating and set a $85.00 target price on shares of Dolby Laboratories in a report on Friday, January 30th. Barrington Research decreased their price target on shares of Dolby Laboratories from $95.00 to $90.00 and set an “outperform” rating for the company in a research note on Monday, January 26th. Weiss Ratings reissued a “hold (c-)” rating on shares of Dolby Laboratories in a research report on Monday, December 29th. Finally, Wall Street Zen lowered shares of Dolby Laboratories from a “buy” rating to a “hold” rating in a research note on Saturday, January 31st. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, Dolby Laboratories currently has a consensus rating of “Moderate Buy” and an average target price of $90.75.

Dolby Laboratories Price Performance

The company has a market cap of $5.60 billion, a P/E ratio of 23.64 and a beta of 0.84. The company’s 50-day moving average is $63.50 and its two-hundred day moving average is $66.23.

Dolby Laboratories (NYSE:DLB) last released its quarterly earnings data on Thursday, January 29th. The electronics maker reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.99 by $0.07. Dolby Laboratories had a return on equity of 11.50% and a net margin of 17.97%.The business had revenue of $346.71 million for the quarter, compared to analysts’ expectations of $341.26 million. During the same period in the prior year, the firm posted $1.14 EPS. The firm’s quarterly revenue was down 2.8% on a year-over-year basis. Equities research analysts anticipate that Dolby Laboratories will post 2.94 EPS for the current year.

Dolby Laboratories Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, February 18th. Stockholders of record on Tuesday, February 10th were issued a dividend of $0.36 per share. This represents a $1.44 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend was Tuesday, February 10th. Dolby Laboratories’s dividend payout ratio is presently 58.06%.

Insider Buying and Selling at Dolby Laboratories

In other Dolby Laboratories news, SVP Shriram Revankar sold 3,000 shares of the company’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $66.14, for a total transaction of $198,420.00. Following the transaction, the senior vice president owned 83,218 shares in the company, valued at approximately $5,504,038.52. This represents a 3.48% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Ryan Nicholson sold 2,667 shares of the firm’s stock in a transaction dated Friday, February 13th. The shares were sold at an average price of $66.38, for a total transaction of $177,035.46. Following the sale, the chief accounting officer directly owned 36,956 shares in the company, valued at approximately $2,453,139.28. The trade was a 6.73% decrease in their position. The SEC filing for this sale provides additional information. Company insiders own 37.93% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in DLB. First Horizon Corp purchased a new stake in Dolby Laboratories in the third quarter worth approximately $25,000. Hantz Financial Services Inc. grew its position in Dolby Laboratories by 166.7% in the 3rd quarter. Hantz Financial Services Inc. now owns 352 shares of the electronics maker’s stock worth $25,000 after purchasing an additional 220 shares during the period. Mather Group LLC. purchased a new stake in Dolby Laboratories during the 3rd quarter valued at $38,000. Rothschild Investment LLC raised its stake in Dolby Laboratories by 4,046.7% during the 3rd quarter. Rothschild Investment LLC now owns 622 shares of the electronics maker’s stock valued at $45,000 after buying an additional 607 shares during the last quarter. Finally, Fifth Third Bancorp lifted its holdings in shares of Dolby Laboratories by 34.7% during the 4th quarter. Fifth Third Bancorp now owns 746 shares of the electronics maker’s stock valued at $48,000 after buying an additional 192 shares during the period. 58.56% of the stock is owned by hedge funds and other institutional investors.

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.