Donaldson Company, Inc. (NYSE:DCI) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Donaldson has a “Moderate Buy” consensus rating among five analysts, with three buys and two holds. The average 12-month price target is $97.83, above the reported share price of $93.18.
• Donaldson exceeded quarterly expectations, reporting $1.06 in EPS versus the $1.05 consensus and revenue of $995.1 million, up 5.9% year over year.
• The company increased its quarterly dividend from $0.30 to $0.32 per share, representing an annualized payout of $1.28 and a 1.4% yield; institutional investors own 82.81% of the stock.

Donaldson Company, Inc. (NYSE:DCI - Get Free Report) has been given an average rating of "Moderate Buy" by the five ratings firms that are presently covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12 month price objective among analysts that have issued ratings on the stock in the last year is $97.8333.

Several analysts have recently weighed in on DCI shares. Weiss Ratings upgraded shares of Donaldson from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Wednesday, June 3rd. Wells Fargo & Company set a $91.00 price target on Donaldson in a research note on Thursday, June 4th. Wall Street Zen upgraded Donaldson from a "hold" rating to a "buy" rating in a report on Sunday, July 12th. Stifel Nicolaus cut their price target on Donaldson from $96.00 to $91.00 and set a "hold" rating for the company in a research note on Thursday, June 4th. Finally, Robert W. Baird cut their price objective on shares of Donaldson from $104.00 to $95.00 and set an "outperform" rating on the stock in a report on Monday, March 30th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Verdence Capital Advisors LLC grew its holdings in Donaldson by 1.2% during the fourth quarter. Verdence Capital Advisors LLC now owns 8,603 shares of the industrial products company's stock valued at $763,000 after purchasing an additional 101 shares during the period. TIAA Trust National Association grew its holdings in Donaldson by 2.0% during the 4th quarter. TIAA Trust National Association now owns 5,589 shares of the industrial products company's stock valued at $496,000 after buying an additional 108 shares in the last quarter. Perigon Wealth Management LLC increased its position in shares of Donaldson by 3.6% during the fourth quarter. Perigon Wealth Management LLC now owns 3,440 shares of the industrial products company's stock valued at $305,000 after buying an additional 118 shares during the period. Signaturefd LLC lifted its holdings in shares of Donaldson by 9.6% in the fourth quarter. Signaturefd LLC now owns 1,403 shares of the industrial products company's stock worth $124,000 after buying an additional 123 shares in the last quarter. Finally, HB Wealth Management LLC lifted its holdings in shares of Donaldson by 3.8% in the first quarter. HB Wealth Management LLC now owns 3,502 shares of the industrial products company's stock worth $297,000 after buying an additional 129 shares in the last quarter. 82.81% of the stock is owned by institutional investors.

Donaldson Stock Performance

Shares of DCI opened at $93.18 on Tuesday. The company has a current ratio of 2.35, a quick ratio of 1.55 and a debt-to-equity ratio of 0.35. The firm's fifty day simple moving average is $86.94 and its two-hundred day simple moving average is $91.24. Donaldson has a 12 month low of $70.17 and a 12 month high of $112.84. The stock has a market capitalization of $10.80 billion, a P/E ratio of 25.05, a price-to-earnings-growth ratio of 2.35 and a beta of 0.93.

Donaldson (NYSE:DCI - Get Free Report) last posted its quarterly earnings data on Monday, June 1st. The industrial products company reported $1.06 earnings per share for the quarter, topping the consensus estimate of $1.05 by $0.01. Donaldson had a return on equity of 29.17% and a net margin of 11.52%.The firm had revenue of $995.10 million during the quarter, compared to analyst estimates of $973.65 million. During the same period last year, the company posted $0.99 EPS. The business's quarterly revenue was up 5.9% on a year-over-year basis. As a group, analysts predict that Donaldson will post 3.96 EPS for the current year.

Donaldson Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 15th were paid a $0.32 dividend. This is a boost from Donaldson's previous quarterly dividend of $0.30. The ex-dividend date was Monday, June 15th. This represents a $1.28 dividend on an annualized basis and a yield of 1.4%. Donaldson's dividend payout ratio is currently 34.41%.

About Donaldson

Donaldson Company, Inc NYSE: DCI is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson's product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.

Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.

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