Zacks Investment Research cut shares of Donaldson (NYSE:DCI) from a hold rating to a sell rating in a report issued on Wednesday, Zacks.com reports.

According to Zacks, “Over the past three months, Donaldson's shares have underperformed the industry. Also, it looks significantly overvalued compared with the industry over the same time frame. Rising costs of revenues on account of material price inflation and soaring freight charges remain concerns for near-term margins. It anticipates that continued material price inflation and soaring freight charges will hurt gross profit by $30 million in fiscal 2019. Weakening Gas Turbine Systems business is also weighing on the company. Donaldson perceives that this issue will continue to weigh over the top-line performance of its Industrial Products segment in fiscal 2019. Moreover, increase in debt levels can increase financial obligations. In the past 30 days, earnings estimates for the company have declined for fiscal 2020.”

Shares of NYSE DCI opened at $48.19 on Wednesday. The company has a market capitalization of $6.15 billion, a P/E ratio of 24.10, a PEG ratio of 1.97 and a beta of 1.44. Donaldson has a 52 week low of $40.27 and a 52 week high of $59.43. The company has a debt-to-equity ratio of 0.72, a current ratio of 2.35 and a quick ratio of 1.61.

Donaldson (NYSE:DCI) last announced its quarterly earnings results on Wednesday, March 6th. The industrial products company reported $0.47 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.51 by ($0.04). Donaldson had a net margin of 10.82% and a return on equity of 32.75%. The firm had revenue of $703.70 million during the quarter, compared to the consensus estimate of $719.40 million. During the same period in the previous year, the firm posted $0.43 EPS. The company’s quarterly revenue was up 5.9% compared to the same quarter last year. As a group, equities analysts forecast that Donaldson will post 2.33 earnings per share for the current year.

In related news, Director Willard D. Oberton sold 14,400 shares of the business’s stock in a transaction that occurred on Thursday, March 28th. The stock was sold at an average price of $49.10, for a total value of $707,040.00. Following the completion of the sale, the director now directly owns 33,172 shares in the company, valued at approximately $1,628,745.20. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Chairman Tod E. Carpenter sold 4,000 shares of the business’s stock in a transaction that occurred on Friday, March 29th. The stock was sold at an average price of $50.02, for a total value of $200,080.00. Following the completion of the sale, the chairman now owns 102,037 shares of the company’s stock, valued at $5,103,890.74. The disclosure for this sale can be found here. 1.35% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Impax Asset Management Group plc lifted its holdings in shares of Donaldson by 22.0% during the fourth quarter. Impax Asset Management Group plc now owns 719,290 shares of the industrial products company’s stock worth $31,210,000 after buying an additional 129,898 shares during the last quarter. Amalgamated Bank lifted its holdings in shares of Donaldson by 52.5% during the fourth quarter. Amalgamated Bank now owns 29,843 shares of the industrial products company’s stock worth $1,295,000 after buying an additional 10,268 shares during the last quarter. Harvey Investment Co. LLC lifted its holdings in shares of Donaldson by 1.7% during the first quarter. Harvey Investment Co. LLC now owns 216,903 shares of the industrial products company’s stock worth $10,858,000 after buying an additional 3,725 shares during the last quarter. Thrivent Financial for Lutherans lifted its holdings in shares of Donaldson by 4.6% during the fourth quarter. Thrivent Financial for Lutherans now owns 32,764 shares of the industrial products company’s stock worth $1,422,000 after buying an additional 1,442 shares during the last quarter. Finally, Louisiana State Employees Retirement System lifted its holdings in shares of Donaldson by 0.9% during the first quarter. Louisiana State Employees Retirement System now owns 34,200 shares of the industrial products company’s stock worth $1,712,000 after buying an additional 300 shares during the last quarter. Hedge funds and other institutional investors own 80.58% of the company’s stock.

Donaldson Company Profile

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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