Donaldson Co. (DCI) Upgraded to “Hold” by 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 lifted their target price on Donaldson from $36.00 to $39.00 and gave the company a neutral rating in a research note on Friday, September 9th. Four analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. The stock currently has an average rating of Hold and an average target price of $38.25.
Donaldson (NYSE:DCI) opened at 39.99 on Monday. Donaldson has a one year low of $25.21 and a one year high of $40.96. The company’s 50 day moving average price is $37.82 and its 200-day moving average price is $36.29. The company has a market cap of $5.31 billion, a P/E ratio of 28.16 and a beta of 0.93.
Donaldson (NYSE:DCI) last issued its earnings results on Thursday, September 8th. The company reported $0.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.49 by $0.03. The business had revenue of $593 million for the quarter, compared to the consensus estimate of $594.80 million. Donaldson had a net margin of 8.59% and a return on equity of 27.06%. The firm’s revenue for the quarter was down 2.8% compared to the same quarter last year. During the same period last year, the business posted $0.45 EPS. On average, analysts forecast that Donaldson will post $1.58 EPS for the current fiscal year.
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The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 21st. Stockholders of record on Tuesday, December 6th will be issued a $0.175 dividend. This represents a $0.70 dividend on an annualized basis and a dividend yield of 1.75%. The ex-dividend date of this dividend is Friday, December 2nd. Donaldson’s dividend payout ratio (DPR) is 49.30%.
In other news, Director John Wiehoff sold 14,400 shares of Donaldson stock in a transaction that occurred 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 completion of the transaction, the director now owns 56,877 shares in the company, valued at approximately $2,065,772.64. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.88% of the stock is owned by insiders.
Institutional investors have recently made changes to their positions in the company. American Century Companies Inc. boosted its position in shares of Donaldson by 9.9% in the second quarter. American Century Companies Inc. now owns 792,570 shares of the company’s stock worth $27,233,000 after buying an additional 71,300 shares during the period. Confluence Investment Management LLC boosted its position in shares of Donaldson by 57.6% in the second quarter. Confluence Investment Management LLC now owns 395,996 shares of the company’s stock worth $13,606,000 after buying an additional 144,809 shares during the period. Retirement Systems of Alabama boosted its position in Donaldson by 0.3% in the second quarter. Retirement Systems of Alabama now owns 159,483 shares of the company’s stock worth $5,480,000 after buying an additional 410 shares during the last quarter. Bank of Montreal Can acquired a new position in Donaldson during the second quarter worth about $2,930,000. Finally, LS Investment Advisors LLC boosted its position in Donaldson by 71.9% in the second quarter. LS Investment Advisors LLC now owns 7,625 shares of the company’s stock worth $262,000 after buying an additional 3,189 shares during the last quarter. Hedge funds and other institutional investors own 80.65% of the company’s stock.
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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