Donaldson (NYSE:DCI) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $53.00 price target on the industrial products company’s stock. Zacks Investment Research‘s price target would suggest a potential upside of 13.30% from the company’s previous close.
According to Zacks, “Donaldson has an impressive earnings surprise history, having beaten estimates thrice in the trailing four quarters. Its Engine Products segment has been showing great momentum, benefiting from stabilization in market conditions and robust sales of replacement parts. 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. Donaldson is committed to achieve sustained improvement in operational efficiency through strategic restructuring actions and improved customer relations. 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. Soft demand for industrial filtration solutions could also hamper growth.”
Several other research firms have also commented on DCI. Jefferies Group reissued a “buy” rating and issued a $57.00 target price on shares of Donaldson in a report on Friday, December 1st. Stifel Nicolaus reissued a “hold” rating and issued a $53.00 target price (up previously from $50.00) on shares of Donaldson in a report on Tuesday, January 16th. Oppenheimer reissued a “hold” rating on shares of Donaldson in a report on Friday, December 1st. Finally, SunTrust Banks reissued a “hold” rating and issued a $46.00 target price on shares of Donaldson in a report on Friday, October 27th. Four equities research analysts have rated the stock with a hold rating and three have issued a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $52.00.
Donaldson (NYSE:DCI) last posted its quarterly earnings data on Thursday, November 30th. The industrial products company reported $0.46 earnings per share for the quarter, topping analysts’ consensus estimates of $0.42 by $0.04. Donaldson had a return on equity of 28.49% and a net margin of 9.57%. The business had revenue of $644.80 million for the quarter, compared to analyst estimates of $602.02 million. During the same quarter in the prior year, the company earned ($0.05) earnings per share. The company’s revenue was up 16.6% on a year-over-year basis. equities research analysts expect that Donaldson will post 2 EPS for the current year.
In other Donaldson news, insider Melissa A. Osland sold 1,453 shares of the company’s stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $48.26, for a total value of $70,121.78. Following the completion of the transaction, the insider now owns 4,174 shares in the company, valued at $201,437.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 1.09% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Fuller & Thaler Asset Management Inc. boosted its stake in Donaldson by 51.5% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 3,235 shares of the industrial products company’s stock valued at $158,000 after acquiring an additional 1,100 shares in the last quarter. CIBC Asset Management Inc acquired a new position in Donaldson in the third quarter valued at $201,000. Magnetar Financial LLC acquired a new position in Donaldson in the third quarter valued at $201,000. BB&T Corp acquired a new position in Donaldson in the fourth quarter valued at $210,000. Finally, Baird Financial Group Inc. acquired a new position in Donaldson in the fourth quarter valued at $219,000. Institutional investors own 77.23% of the company’s stock.
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Donaldson Company Profile
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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