Zacks Investment Research upgraded shares of Donaldson Co. (NYSE:DCI) from a sell rating to a hold rating in a research note issued to investors on Tuesday morning.
According to Zacks, “Donaldson has had a choppy earnings history in recent times, having beaten estimates twice in the trailing four quarters for as many misses. Of late, the company’s strategy of winning first-fit programs, aftermarket growth and constant geographic expansion has been acting as strong growth drivers. Also, Donaldson is committed to achieve sustained improvement in operational efficiency through strategic restructuring actions and improved customer relations. Donaldson has completed its ERP implementation program that is expected to be conducive to expense run rate by a few millions. However, issues like persistent weakness in key markets, including agriculture, oil and gas, mining equipment, decline in the disk drive business and volatility in sales of Gas Turbines, are anticipated to act as major headwinds going forward. Also, currency fluctuations, intensifying competition and commodity price fluctuations add to the company’s concerns.”
Separately, Robert W. Baird increased their price objective on shares of Donaldson from $36.00 to $39.00 and gave the company a neutral rating in a research note on Friday, September 9th. Four investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company. The stock presently has an average rating of Hold and an average price target of $38.25.
Shares of Donaldson (NYSE:DCI) opened at 40.80 on Tuesday. The firm’s 50-day moving average is $37.72 and its 200-day moving average is $36.18. The stock has a market capitalization of $5.41 billion, a price-to-earnings ratio of 28.73 and a beta of 0.93. Donaldson has a 52 week low of $25.21 and a 52 week high of $40.96.
Donaldson (NYSE:DCI) last issued its earnings results on Thursday, September 8th. The company reported $0.46 EPS for the quarter, missing the Zacks’ consensus estimate of $0.49 by $0.03. The company had revenue of $593 million for the quarter, compared to analysts’ expectations of $594.80 million. Donaldson had a return on equity of 27.06% and a net margin of 8.59%. The business’s revenue was down 2.8% compared to the same quarter last year. During the same period last year, the business posted $0.45 earnings per share. Analysts forecast that Donaldson will post $1.58 earnings per share for the current fiscal year.
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 21st. Stockholders of record on Tuesday, December 6th will be paid a dividend of $0.175 per share. The ex-dividend date is Friday, December 2nd. This represents a $0.70 dividend on an annualized basis and a dividend yield of 1.72%. Donaldson’s dividend payout ratio is presently 49.30%.
In other news, Director John Wiehoff sold 14,400 shares of the stock in a transaction that occurred on Wednesday, September 14th. The shares were sold at an average price of $36.32, for a total transaction of $523,008.00. Following the transaction, the director now directly owns 56,877 shares in the company, valued at $2,065,772.64. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.88% of the company’s stock.
A number of large investors have recently made changes to their positions in DCI. Ledyard National Bank increased its stake in shares of Donaldson by 105.7% in the third quarter. Ledyard National Bank now owns 3,503 shares of the company’s stock valued at $131,000 after buying an additional 1,800 shares during the period. Mosaic Family Wealth LLC increased its stake in shares of Donaldson by 9.9% in the third quarter. Mosaic Family Wealth LLC now owns 4,092 shares of the company’s stock valued at $153,000 after buying an additional 369 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Donaldson by 12.9% in the third quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,166 shares of the company’s stock valued at $156,000 after buying an additional 475 shares during the period. Washington Trust Bank increased its stake in shares of Donaldson by 0.5% in the third quarter. Washington Trust Bank now owns 5,024 shares of the company’s stock valued at $188,000 after buying an additional 24 shares during the period. Finally, Independent Portfolio Consultants Inc. increased its stake in shares of Donaldson by 9.5% in the second quarter. Independent Portfolio Consultants Inc. now owns 5,240 shares of the company’s stock valued at $180,000 after buying an additional 455 shares during the period. Institutional investors own 80.65% of the company’s stock.
Donaldson Company Profile
Donaldson Company, Inc is a manufacturer of filtration systems and replacement parts. The Company’s segments include Engine Products, Industrial Products and Corporate. The Company’s products are manufactured at approximately 42 plants around the world and through three joint ventures. The Company offers its products under the Ultra-Web, PowerCore and Donaldson brands.