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

According to Zacks, “In first-quarter fiscal 2019, Donaldson's earnings and revenues grew 21.7% and 8.8%, respectively. Over the past six months, the company's shares have outperformed the industry.The company perceives that stronger top-line performance, as well as ongoing price realization and cost reduction moves will likely continue to boost up its profitability in the quarters ahead. Moreover, new innovation investments and increased capital expenditure projects will likely aid in boosting up its revenues and profitability going forward.However, over the past six-month period the stock looks overvalued compared to its industry. Also, material price inflation and soaring freight charges is predicted to weigh over Donaldson's near-term margins. Weakening Gas Turbine Systems business also remains a major cause of concern for the company. In the past 7 days, earnings estimates on the stock improved for fiscal 2019 and remained stable for fiscal 2020.”

DCI has been the topic of a number of other research reports. Oppenheimer reiterated a “hold” rating on shares of Donaldson in a research note on Thursday, September 6th. Stifel Nicolaus reiterated a “hold” rating and set a $54.00 target price (up previously from $46.00) on shares of Donaldson in a research note on Thursday, September 6th. Finally, ValuEngine upgraded Donaldson from a “hold” rating to a “buy” rating in a research note on Friday, September 7th. Four equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus target price of $56.33.

DCI opened at $48.92 on Thursday. Donaldson has a 12-month low of $43.35 and a 12-month high of $59.43. The company has a market capitalization of $6.59 billion, a PE ratio of 24.46, a price-to-earnings-growth ratio of 1.87 and a beta of 1.25. The company has a quick ratio of 1.69, a current ratio of 2.40 and a debt-to-equity ratio of 0.74.

Donaldson (NYSE:DCI) last released its quarterly earnings data on Tuesday, December 4th. The industrial products company reported $0.56 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.57 by ($0.01). Donaldson had a net margin of 6.92% and a return on equity of 32.75%. The business had revenue of $701.40 million during the quarter, compared to analyst estimates of $700.98 million. During the same period in the previous year, the business earned $0.46 earnings per share. The business’s quarterly revenue was up 8.8% on a year-over-year basis. As a group, equities research analysts anticipate that Donaldson will post 2.39 earnings per share for the current fiscal year.

In other Donaldson news, Director Willard D. Oberton sold 14,400 shares of the firm’s stock in a transaction on Wednesday, September 12th. The stock was sold at an average price of $56.85, for a total transaction of $818,640.00. Following the transaction, the director now owns 30,451 shares in the company, valued at approximately $1,731,139.35. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP Richard Brent Lewis sold 3,209 shares of the firm’s stock in a transaction on Friday, September 14th. The stock was sold at an average price of $58.99, for a total value of $189,298.91. Following the transaction, the vice president now owns 4,000 shares in the company, valued at approximately $235,960. The disclosure for this sale can be found here. 1.35% of the stock is currently owned by company insiders.

A number of institutional investors have recently bought and sold shares of the business. Great Lakes Advisors LLC increased its stake in Donaldson by 51.8% during the 3rd quarter. Great Lakes Advisors LLC now owns 13,555 shares of the industrial products company’s stock worth $790,000 after acquiring an additional 4,623 shares during the period. Vanguard Group Inc. increased its stake in Donaldson by 0.7% during the 3rd quarter. Vanguard Group Inc. now owns 12,475,701 shares of the industrial products company’s stock worth $726,835,000 after acquiring an additional 84,864 shares during the period. Morgan Stanley increased its stake in Donaldson by 95.8% during the 3rd quarter. Morgan Stanley now owns 615,574 shares of the industrial products company’s stock worth $35,863,000 after acquiring an additional 301,214 shares during the period. Meristem Family Wealth LLC bought a new position in Donaldson during the 3rd quarter worth $237,000. Finally, Teachers Advisors LLC increased its stake in Donaldson by 2.9% during the 3rd quarter. Teachers Advisors LLC now owns 163,797 shares of the industrial products company’s stock worth $9,543,000 after acquiring an additional 4,650 shares during the period. Hedge funds and other institutional investors own 81.42% of the company’s stock.

About Donaldson

Donaldson Company, Inc manufactures and sells filtration systems and replacement parts worldwide. It operates through Engine Products and Industrial Products segments. The Engine Products segment offers replacement filters for air and liquid filtration applications, air filtration systems, liquid filtration systems for fuel, lube and hydraulic applications, and exhaust and emissions systems.

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