Donaldson Co. (NYSE:DCI) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Tuesday.

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 raised their price objective on shares of Donaldson from $36.00 to $39.00 and gave the company a “neutral” rating in a research report on Friday, September 9th. Five research analysts have rated the stock with a hold rating and two have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $38.25.

Analyst Recommendations for Donaldson (NYSE:DCI)

Donaldson (NYSE:DCI) traded up 1.1798% during mid-day trading on Tuesday, reaching $40.2999. 201,027 shares of the company traded hands. The firm has a market cap of $5.35 billion, a PE ratio of 28.3802 and a beta of 0.93. The stock’s 50-day moving average price is $37.37 and its 200-day moving average price is $36.03. Donaldson has a one year low of $25.21 and a one year high of $40.96.

Donaldson (NYSE:DCI) last announced its earnings results on Thursday, September 8th. The company reported $0.46 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.49 by $0.03. The firm had revenue of $593 million for the quarter, compared to analyst estimates of $594.80 million. Donaldson had a return on equity of 27.06% and a net margin of 8.59%. The company’s revenue for the quarter was down 2.8% compared to the same quarter last year. During the same quarter last year, the business earned $0.45 EPS. Analysts forecast that Donaldson will post $1.58 earnings per share for the current fiscal year.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 21st. Stockholders of record on Tuesday, December 6th will be paid a $0.175 dividend. This represents a $0.70 annualized dividend and a dividend yield of 1.76%. The ex-dividend date is Friday, December 2nd. Donaldson’s dividend payout ratio (DPR) is presently 49.30%.

In other news, Director John Wiehoff sold 14,400 shares of the firm’s stock in a transaction dated Wednesday, September 14th. The shares were sold at an average price of $36.32, for a total value of $523,008.00. Following the transaction, the director now owns 56,877 shares of the company’s stock, valued at approximately $2,065,772.64. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.88% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of DCI. Goldman Sachs Group Inc. raised its position in shares of Donaldson by 32.3% in the first quarter. Goldman Sachs Group Inc. now owns 137,100 shares of the company’s stock valued at $4,375,000 after buying an additional 33,478 shares during the period. Geode Capital Management LLC raised its position in shares of Donaldson by 3.1% in the first quarter. Geode Capital Management LLC now owns 757,628 shares of the company’s stock valued at $24,175,000 after buying an additional 23,069 shares during the period. Envestnet Asset Management Inc. raised its position in shares of Donaldson by 3.4% in the first quarter. Envestnet Asset Management Inc. now owns 31,005 shares of the company’s stock valued at $989,000 after buying an additional 1,013 shares during the period. Metropolitan Life Insurance Co. NY raised its position in shares of Donaldson by 2.8% in the first quarter. Metropolitan Life Insurance Co. NY now owns 117,818 shares of the company’s stock valued at $3,760,000 after buying an additional 3,162 shares during the period. Finally, Arizona State Retirement System raised its position in shares of Donaldson by 3.3% in the first quarter. Arizona State Retirement System now owns 62,447 shares of the company’s stock valued at $1,993,000 after buying an additional 2,000 shares during the period. 81.69% of the stock is currently owned by institutional investors.

About Donaldson

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.

5 Day Chart for NYSE:DCI

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