Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Dolby Laboratories (NASDAQ:DLB), a $6.9 billion market cap company with impressive gross profit margins of 88.5%, saw its President and CEO Kevin J. Yeaman sell 25,000 shares of Class A Common Stock on September 16, 2025, for approximately $1.79 million. The sales occurred at prices ranging from $71.285 to $71.88, near the stock’s 52-week low. According to InvestingPro analysis, the stock appears undervalued at current levels.
Yeaman also exercised options to acquire 25,000 shares of Dolby Laboratories Class A Common Stock at a price of $45.5, for a total value of $1,137,500. These options were fully vested and exercisable as of the transaction date. For comprehensive insider trading analysis and 8 additional key insights about Dolby Laboratories, visit InvestingPro.
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 by a trust. He also indirectly holds 2.5592 shares by a son. The company maintains strong financial health with more cash than debt on its balance sheet and has consistently paid dividends for 12 consecutive years.
In other recent news, Dolby Laboratories reported strong third-quarter earnings for 2025, surpassing both revenue and earnings per share forecasts. The company achieved an earnings per share of $0.78, exceeding the projected $0.71, and generated $316 million in revenue, surpassing the forecasted $305.23 million. Despite these positive results, Dolby’s stock showed mixed investor sentiment in after-hours trading. Additionally, Tigress Financial Partners raised its price target on Dolby Laboratories to $114.00 from its previous target, maintaining a Buy rating. The firm cited Dolby’s solid growth in licensing revenues and strong adoption across key markets as primary factors behind the increased target. Tigress Financial also highlighted the company’s resilient gross margins and ongoing innovation in immersive media. Meanwhile, Baird initiated coverage on Dolby Laboratories with a Neutral rating and a $74.00 price target. The research firm emphasized Dolby’s role in the media ecosystem and noted several growth opportunities.
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