Donaldson Co. (DCI) Upgraded at Zacks Investment Research
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. Going forward, the company's strategic restructuring actions and improved customer relations are expected to boost operational efficiency. Donaldson has completed its ERP implementation program that is expected to be conducive to expense run rate by a few millions. Moreover, first-fit program wins, aftermarket growth and constant geographic expansion are likely to act as catalysts in the coming quarters. However, on the flip side, 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. This apart, currency fluctuations, intensifying competition and commodity price fluctuations, add to the company’s concerns.”
Separately, Robert W. Baird increased their price target on Donaldson from $36.00 to $39.00 and gave the stock a neutral rating in a research note on Friday, September 9th. Four research analysts have rated the stock with a hold rating and two have given a buy rating to the company’s stock. The stock currently has a consensus rating of Hold and a consensus target price of $38.25.
Donaldson (NYSE:DCI) opened at 40.56 on Monday. The stock’s 50 day moving average price is $37.92 and its 200 day moving average price is $36.34. The firm has a market capitalization of $5.38 billion, a PE ratio of 28.56 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 quarterly earnings results on Thursday, September 8th. The company reported $0.46 earnings per share for the quarter, missing analysts’ consensus estimates of $0.49 by $0.03. Donaldson had a return on equity of 27.06% and a net margin of 8.59%. The business had revenue of $593 million for the quarter, compared to analysts’ expectations of $594.80 million. During the same period in the prior year, the company earned $0.45 EPS. The company’s revenue for the quarter was down 2.8% compared to the same quarter last year. Analysts expect that Donaldson will post $1.58 earnings per share for the current year.
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The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 21st. Investors of record on Tuesday, December 6th will be given a $0.175 dividend. This represents a $0.70 annualized dividend and a dividend yield of 1.73%. The ex-dividend date is Friday, December 2nd. Donaldson’s dividend payout ratio (DPR) is currently 49.30%.
In related news, Director John Wiehoff sold 14,400 shares of the stock in a transaction on Wednesday, September 14th. The stock was sold at an average price of $36.32, for a total value of $523,008.00. Following the transaction, the director now directly owns 56,877 shares of the company’s stock, valued at approximately $2,065,772.64. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.88% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its position in Donaldson by 4.1% in the second quarter. Vanguard Group Inc. now owns 10,339,630 shares of the company’s stock valued at $355,270,000 after buying an additional 406,407 shares during the period. Mairs & Power INC raised its position in Donaldson by 4.0% in the second quarter. Mairs & Power INC now owns 5,666,127 shares of the company’s stock valued at $194,688,000 after buying an additional 215,421 shares during the period. BlackRock Fund Advisors raised its position in Donaldson by 9.9% in the third quarter. BlackRock Fund Advisors now owns 4,762,214 shares of the company’s stock valued at $177,773,000 after buying an additional 430,663 shares during the period. BlackRock Institutional Trust Company N.A. raised its position in Donaldson by 3.7% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 3,803,320 shares of the company’s stock valued at $141,978,000 after buying an additional 135,971 shares during the period. Finally, Bank of New York Mellon Corp raised its position in Donaldson by 5.5% in the third quarter. Bank of New York Mellon Corp now owns 2,392,366 shares of the company’s stock valued at $89,307,000 after buying an additional 124,514 shares during the period. 80.65% of the stock is currently owned by institutional investors.
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.
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