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Dolby Laboratories (DLB) Stock Analysis

Falling Knife setup

SellVALUE-TRAP 2/5High Confidence

Industrials · Specialty Business Services

Sell if holding. Momentum 1.7/10 is below the 5.0 floor at $54.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Product: Licensing (93.0%); Sector modifier (Industrials): -0.7.

Dolby Laboratories licenses audio and video technologies (DD+, Dolby Atmos, Dolby Vision, patent pools) to ~1,000 device manufacturers globally and sells cinema hardware and services to exhibitors. Licensing generates 93% of revenues with broadcast (34%), mobile (22%), CE (12%),... Read more

$54.21+22.8% A.UpsideScore 5.3/10#10 of 21 Specialty Business Services
QualityF-score8 / 9FCF yield5.64%
IncomeYield2.60%(5y avg 1.44%)Payout54.76%sustainable
Stop $51.85Target $66.58(analyst − 15%)A.R:R 2.8:1
Analyst target$78.33+44.5%3 analysts
$66.58our TP
$54.21price
$78.33mean
$90

Sell if holding. Momentum 1.7/10 is below the 5.0 floor at $54.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Product: Licensing (93.0%); Sector modifier (Industrials): -0.7. Chart setup: Death cross, below all MAs, RSI 23, MACD bearish. Score 5.3/10, high confidence.

Passes 7/9 gates (favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 80d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.

Recent Developments — Dolby Laboratories

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
V7 quality resilience bonus: +0.2 (Q=7.3 in RISK_OFF)
Strong earnings beat streak (4/4)
High-quality business
Risks
Concentration risk — Product: Licensing (93.0%)
Sector modifier (Industrials): -0.7
Leverage penalty (D/E 1.9): -1.0

Key Metrics

P/E (TTM)21.5
P/E (Fwd)11.8
Mkt Cap$5.1B
EV/EBITDA12.7
Profit Mgn17.9%
ROE9.4%
Rev Growth7.1%
Beta0.86
Dividend2.60%
Rating analysts11

Quality Signals

Piotroski F8/9MoatNarrow

Concentration Risks(10-K Item 1A)

  • HIGHProductLicensing93%
    10-K Item 1: 'Licensing ... 93%... Products and services ... 7%... Total ... 100%'

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

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

Macd
0.0
Obv
1.0
Ma Position
1.0
Rsi
3.0
Volume
3.7
Capitulation risk (RSI 23, below 200MA)Volume distribution (falling OBV)Below 200-MA, MA slope -2.9%/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 1.7<4.5Death cross (50MA < 200MA)A.R:R 2.8 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 80d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARFalling KnifeSuitability: Moderate
RSI
23 · Oversold
20D MA 50D MA 200D MADEATH CROSSSupport $53.45Resistance $65.24

Price Targets

$52
$67
A.Upside+22.8%
A.R:R2.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Risk Alerts

! Momentum score 1.7/10 — below 4.5 minimum
! Death cross — 50-day MA below 200-day MA

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-05 (80d)

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 1.7/10 is below the 5.0 floor at $54.21 — engine's falling-knife protection flags exit rather than catching a breakdown. Specifics: Concentration risk — Product: Licensing (93.0%); Sector modifier (Industrials): -0.7. Chart setup: Death cross, below all MAs, RSI 23, MACD bearish. Prior stop was $51.85. Score 5.3/10, high confidence.

What is the DLB stock price target?

Take-profit target: $66.58 (+22.8% upside). Prior stop was $51.85. Stop-loss: $51.85.

What are the risks of investing in DLB?

Concentration risk — Product: Licensing (93.0%); Sector modifier (Industrials): -0.7; Leverage penalty (D/E 1.9): -1.0.

Is DLB overvalued or undervalued?

Dolby Laboratories trades at a P/E of 21.5 (forward 11.8). TrendMatrix value score: 6.6/10. Verdict: Sell.

What do analysts say about DLB?

11 analysts cover DLB with a consensus score of 4.0/5. Average price target: $78.

What does Dolby Laboratories do?Dolby Laboratories licenses audio and video technologies (DD+, Dolby Atmos, Dolby Vision, patent pools) to ~1,000...

Dolby Laboratories licenses audio and video technologies (DD+, Dolby Atmos, Dolby Vision, patent pools) to ~1,000 device manufacturers globally and sells cinema hardware and services to exhibitors. Licensing generates 93% of revenues with broadcast (34%), mobile (22%), CE (12%), and PC (12%) as primary end markets. Revenue is predominantly royalty-based per-unit arrangements.

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