Skip to main content

Dolby Laboratories (DLB) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 1/5Moderate Confidence

Industrials · Specialty Business Services

Sell if holding. Momentum 2.9/10 is below the 5.0 floor at $58.03 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 1.9): -1.0; Weak growth.

Dolby Laboratories licenses audio and video technology (Dolby Atmos, Dolby Vision, codecs) to ~1,000 device manufacturers representing 93% of fiscal 2025 revenue, and sells cinema products to exhibitors. Revenue protected by 28,400+ issued patents enabling entertainment... Read more

$58.03+19.9% A.UpsideScore 5.5/10#5 of 21 Specialty Business Services
Stop $55.34Target $68.85(analyst − 15%)A.R:R 3.2:1
Analyst target$81.00+39.6%3 analysts
$68.85our TP
$58.03price
$81.00mean
$90

Sell if holding. Momentum 2.9/10 is below the 5.0 floor at $58.03 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 1.9): -1.0; Weak growth. Chart setup: Death cross, below all MAs, RSI 37, MACD bearish. Score 5.5/10, moderate confidence.

Passes 5/7 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, earnings proximity no date, semi cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (4/4)
High-quality business
Risks
Leverage penalty (D/E 1.9): -1.0
Weak growth
Negative momentum

Key Metrics

P/E (TTM)26.0
P/E (Fwd)13.8
Mkt Cap$6.1B
EV/EBITDA15.4
Profit Mgn17.9%
ROE9.4%
Rev Growth7.1%
Beta
Dividend2.15%
Rating analysts11

Quality Signals

Piotroski F8/9

Options Flow

P/C1.54bearish
IV54%elevated

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomersmall number of key licensees
    10-K Item 1A: 'A small number of our licensees or other customers may represent a significant percentage of our Licensing, Products, or Services revenue'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static

Macd
0.0
Volume
0.0
Ma Position
1.0
Rsi
3.5
Obv
10.0
Volume accumulation (rising OBV)Below 200-MA, MA slope -2.6%/30d — confirmed downtrend

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
3.1
Revenue Growth
4.3
GatesMomentum 2.9<4.5Death cross (50MA < 200MA)A.R:R 3.2 ≥ 1.5Insider activity: OKNo SEC red flagsEARNINGS PROXIMITY NO DATESEMI CYCLE PEAK CLEARFalling KnifeSuitability: Moderate
RSI
37 · Neutral
20D MA 50D MA 200D MADEATH CROSSSupport $57.05Resistance $65.65

Price Targets

$55
$69
A.Upside+18.6%
A.R:R3.2:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeCautious

Risk Alerts

! Momentum score 2.9/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-04-30 (nulld)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is DLB stock a buy right now?

Sell if holding. Momentum 2.9/10 is below the 5.0 floor at $58.03 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Leverage penalty (D/E 1.9): -1.0; Weak growth. Chart setup: Death cross, below all MAs, RSI 37, MACD bearish. Prior stop was $55.34. Score 5.5/10, moderate confidence.

What is the DLB stock price target?

Take-profit target: $68.85 (+19.9% upside). Prior stop was $55.34. Stop-loss: $55.34.

What are the risks of investing in DLB?

Leverage penalty (D/E 1.9): -1.0; Weak growth; Negative momentum.

Is DLB overvalued or undervalued?

Dolby Laboratories trades at a P/E of 26.0 (forward 13.8). TrendMatrix value score: 5.9/10. Verdict: Sell.

What do analysts say about DLB?

11 analysts cover DLB with a consensus score of 4.0/5. Average price target: $81.

What does Dolby Laboratories do?Dolby Laboratories licenses audio and video technology (Dolby Atmos, Dolby Vision, codecs) to ~1,000 device...

Dolby Laboratories licenses audio and video technology (Dolby Atmos, Dolby Vision, codecs) to ~1,000 device manufacturers representing 93% of fiscal 2025 revenue, and sells cinema products to exhibitors. Revenue protected by 28,400+ issued patents enabling entertainment experiences across TVs, PCs, mobile devices, gaming, and streaming.

Related stocks: CBZ (CBIZ, Inc.) · FA (First Advantage Corporation) · ABM (ABM Industries Incorporated) · MMS (Maximus, Inc.) · CMPR (Cimpress PLC)