Zacks Investment Research Lowers Donaldson (DCI) to Hold

Donaldson (NYSE:DCI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.

According to Zacks, “Donaldson has an impressive earnings surprise history, having beaten estimates thrice in the trailing four quarters. Donaldson’s Engine Products segment has been exhibiting great momentum, benefiting from stabilization in market conditions. The company’s strategy of winning first-fit programs, aftermarket growth, constant geographic expansion and fostering innovative technology are likely to act as growth catalysts going forward. Over the past three months, the company shares have outperformed the industry average. However, Donaldson’s sales continue to be hurt by prolonged weakness in the gas turbine market. The sales continue to be hurt by prolonged weakness in the gas turbine market. Poor performance from Aerospace and Defense is making matters worse. This apart, currency risks, intensifying competition and commodity price fluctuations add to concerns.”

DCI has been the topic of a number of other research reports. SunTrust Banks reaffirmed a “hold” rating and issued a $50.00 target price on shares of Donaldson in a research report on Friday, December 1st. Stifel Nicolaus reaffirmed a “hold” rating on shares of Donaldson in a research report on Thursday, October 19th. Oppenheimer reissued a “hold” rating on shares of Donaldson in a research report on Monday, December 18th. Finally, Jefferies Group reissued a “buy” rating and set a $57.00 price target on shares of Donaldson in a research report on Friday, December 1st. Five research analysts have rated the stock with a hold rating and two have issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $52.60.

Shares of Donaldson (NYSE DCI) traded down $0.48 during trading on Monday, hitting $48.69. The stock had a trading volume of 210,954 shares, compared to its average volume of 439,333. The company has a market capitalization of $6,387.56, a price-to-earnings ratio of 27.65, a price-to-earnings-growth ratio of 2.22 and a beta of 1.10. Donaldson has a 12 month low of $41.46 and a 12 month high of $52.20. The company has a current ratio of 2.90, a quick ratio of 2.13 and a debt-to-equity ratio of 0.72.

Donaldson (NYSE:DCI) last issued its quarterly earnings results on Thursday, November 30th. The industrial products company reported $0.46 EPS for the quarter, beating analysts’ consensus estimates of $0.42 by $0.04. The company had revenue of $644.80 million for the quarter, compared to analyst estimates of $602.02 million. Donaldson had a return on equity of 28.49% and a net margin of 9.57%. The company’s quarterly revenue was up 16.6% compared to the same quarter last year. During the same period in the previous year, the company posted ($0.05) earnings per share. analysts expect that Donaldson will post 2 earnings per share for the current fiscal year.

In other Donaldson news, insider Melissa A. Osland sold 1,453 shares of the business’s stock in a transaction that occurred on Thursday, December 14th. The stock was sold at an average price of $48.26, for a total transaction of $70,121.78. Following the transaction, the insider now owns 4,174 shares of the company’s stock, valued at $201,437.24. The sale was disclosed in a document filed with the SEC, which is available through this link. 1.09% of the stock is owned by insiders.

A number of hedge funds and other institutional investors have recently made changes to their positions in DCI. CIBC Asset Management Inc bought a new stake in shares of Donaldson during the third quarter worth approximately $201,000. Magnetar Financial LLC bought a new stake in Donaldson during the third quarter worth $201,000. BB&T Corp bought a new stake in Donaldson during the fourth quarter worth $210,000. Verition Fund Management LLC bought a new stake in Donaldson during the second quarter worth $221,000. Finally, DekaBank Deutsche Girozentrale bought a new stake in Donaldson during the third quarter worth $226,000. 77.84% of the stock is currently owned by hedge funds and other institutional investors.

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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 44 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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Analyst Recommendations for Donaldson (NYSE:DCI)

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