S&P 500 may face selling pressure as systematic funds reach full exposure
Kevin J. Yeaman, President and CEO of Dolby Laboratories , Inc. (NYSE:DLB), sold 25,000 shares of Class A Common Stock on June 24, 2025, for a total of $1.85 million. The shares were sold in multiple transactions at prices ranging from $73.34 to $74.33. The transaction occurred as Dolby maintains strong financial health with impressive gross profit margins of 89%. According to InvestingPro analysis, the stock appears undervalued, with analyst price targets ranging from $95 to $112.
On the same day, Yeaman also exercised options to acquire 25,000 shares of Dolby Laboratories’ Class A Common Stock at a price of $45.5 per share, for a total value of $1.13 million. InvestingPro data reveals that Dolby holds more cash than debt on its balance sheet, indicating strong financial positioning. Get access to 8 more exclusive ProTips and comprehensive analysis with an InvestingPro subscription.
Following these transactions, Yeaman directly holds 127,735 shares of Class A Common Stock, which includes 127,735 shares underlying restricted stock units, and indirectly holds 114,725 shares through a family trust. He also indirectly holds 2.5592 shares by a son. These holdings represent a significant stake in the $7.19 billion market cap company, which has maintained consistent dividend payments for 12 consecutive years.
In other recent news, Dolby Laboratories reported their second-quarter earnings for 2025, revealing a non-GAAP earnings per share (EPS) of $1.34, which exceeded the forecasted $1.27. However, the company’s revenue fell slightly short of expectations, reaching $370 million compared to the anticipated $376.38 million. Despite this, Dolby adjusted its full-year revenue guidance to between $1.31 billion and $1.38 billion. Additionally, Tigress Financial Partners reinstated coverage on Dolby with a Buy rating and set a price target of $112.00, citing the company’s advanced audio and video technologies as drivers for potential growth. Dolby’s robust financial health, including a strong balance sheet and cash flow, was also highlighted by the firm. Meanwhile, Lenovo, in collaboration with Google (NASDAQ:GOOGL) and Dolby, introduced the Lenovo Chromebook Plus, the first Chromebook featuring Dolby Atmos sound technology. This development marks a significant milestone in Dolby’s efforts to expand its immersive audio experiences to a broader audience.
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