Zacks Investment Research Downgrades Donaldson Co. (DCI) to Sell
Donaldson Co. (NYSE:DCI) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
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. 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 expected to act as major headwinds going forward. This apart, currency fluctuations, intensifying competition and commodity price fluctuations add to the company’s concerns. On account of these weaknesses, the company expects full-year sales in between a 2% decline and a 2% increase from 2016. Both Engine Products and Industrial Products sales are expected to bear the brunt of sluggish end markets. However, the company’s strategy of winning first-fit programs, aftermarket growth and continued geographic expansion is expected to combat some of these weaknesses and drive growth in the coming quarters. “
Separately, Robert W. Baird raised their price target on Donaldson from $36.00 to $39.00 and gave the company a “neutral” rating in a report on Friday, September 9th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the stock. The stock has an average rating of “Hold” and an average price target of $38.25.
Shares of Donaldson (NYSE:DCI) opened at 40.10 on Wednesday. The firm has a market cap of $5.32 billion, a P/E ratio of 28.24 and a beta of 0.93. The stock has a 50 day moving average of $37.14 and a 200 day moving average of $35.84. Donaldson has a 52 week low of $25.21 and a 52 week high of $40.96.
Donaldson (NYSE:DCI) last released its quarterly earnings data on Thursday, September 8th. The company reported $0.46 EPS for the quarter, missing the consensus estimate of $0.49 by $0.03. The company earned $593 million during the quarter, compared to analyst estimates of $594.80 million. Donaldson had a net margin of 8.59% and a return on equity of 27.06%. The company’s quarterly revenue was down 2.8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.45 EPS. Analysts anticipate that Donaldson will post $1.58 earnings per share for the current fiscal year.
In other news, Director John Wiehoff sold 14,400 shares of Donaldson stock in a transaction on Wednesday, September 14th. The stock was sold at an average price of $36.32, for a total transaction of $523,008.00. Following the completion of the sale, the director now owns 56,877 shares of the company’s stock, valued at $2,065,772.64. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 0.88% of the company’s stock.
Large investors have recently bought and sold shares of the company. Ledyard National Bank increased its stake in Donaldson by 105.7% in the third quarter. Ledyard National Bank now owns 3,503 shares of the company’s stock worth $131,000 after buying an additional 1,800 shares in the last quarter. Mosaic Family Wealth LLC boosted its position 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 worth $153,000 after buying an additional 369 shares during the last quarter. Zurcher Kantonalbank Zurich Cantonalbank boosted its position 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 worth $156,000 after buying an additional 475 shares during the last quarter. Independent Portfolio Consultants Inc. boosted its position 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 worth $180,000 after buying an additional 455 shares during the last quarter. Finally, Washington Trust Bank boosted its position in shares of Donaldson by 0.5% in the third quarter. Washington Trust Bank now owns 5,024 shares of the company’s stock worth $188,000 after buying an additional 24 shares during the last quarter. 82.31% of the stock is 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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