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 note issued to investors on Wednesday.

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.”

Several other analysts also recently issued reports on the company. Stifel Nicolaus reissued a “hold” rating and issued a $53.00 price target (up previously from $50.00) on shares of Donaldson in a report on Tuesday, January 16th. Oppenheimer reaffirmed a “hold” rating on shares of Donaldson in a research note on Monday, December 18th. SunTrust Banks reaffirmed a “hold” rating and set a $50.00 target price on shares of Donaldson in a research note on Friday, December 1st. Finally, Jefferies Group reaffirmed a “buy” rating and set a $57.00 target price on shares of Donaldson in a research note on Friday, December 1st. Five equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. The company has an average rating of “Hold” and an average price target of $52.00.

Shares of Donaldson (DCI) traded up $0.02 during midday trading on Wednesday, hitting $46.80. The company had a trading volume of 88,291 shares, compared to its average volume of 456,584. The company has a market cap of $6,092.67, a P/E ratio of 26.39, a price-to-earnings-growth ratio of 2.12 and a beta of 1.10. Donaldson has a 1-year low of $41.71 and a 1-year 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 announced its quarterly earnings results on Thursday, November 30th. The industrial products company reported $0.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.42 by $0.04. The business had revenue of $644.80 million for the quarter, compared to the consensus estimate of $602.02 million. Donaldson had a return on equity of 28.49% and a net margin of 9.57%. The business’s revenue was up 16.6% on a year-over-year basis. During the same quarter last year, the business posted ($0.05) EPS. equities research analysts forecast that Donaldson will post 2 earnings per share for the current year.

In other Donaldson news, insider Melissa A. Osland sold 1,453 shares of the business’s stock in a transaction dated Thursday, December 14th. The stock was sold at an average price of $48.26, for a total value of $70,121.78. Following the transaction, the insider now owns 4,174 shares in the company, valued at $201,437.24. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.09% of the company’s stock.

Hedge funds and other institutional investors have recently modified their holdings of the business. Seven Eight Capital LP acquired a new stake in shares of Donaldson in the fourth quarter worth about $109,000. Clean Yield Group bought a new stake in shares of Donaldson in the 1st quarter valued at approximately $109,000. TrimTabs Asset Management LLC bought a new stake in shares of Donaldson in the 1st quarter valued at approximately $125,000. Ledyard National Bank grew its stake in shares of Donaldson by 105.7% in the 3rd quarter. Ledyard National Bank now owns 3,503 shares of the industrial products company’s stock valued at $131,000 after purchasing an additional 1,800 shares during the period. Finally, Mosaic Family Wealth LLC grew its stake in shares of Donaldson by 9.9% in the 3rd quarter. Mosaic Family Wealth LLC now owns 4,092 shares of the industrial products company’s stock valued at $153,000 after purchasing an additional 369 shares during the period. Hedge funds and other 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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Analyst Recommendations for Donaldson (NYSE:DCI)

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