Donaldson (NYSE:DCI) Hits New 12-Month High on Earnings Beat

Key Points

• Donaldson Company, Inc. shares reached a new 52-week high of $81.34 following an earnings report that beat expectations, posting $1.03 earnings per share versus the consensus estimate of $1.02.
• The company announced a quarterly dividend of $0.30 per share, with a record date of August 12th, representing an annualized dividend of $1.20 and a yield of 1.5%.
• Analyst sentiment is mixed, with one analyst maintaining a "Buy" rating while others have given "Hold" and "Sell" ratings, leading to an average target price of $70.00.

Donaldson Company, Inc. (NYSE:DCI - Get Free Report) shares reached a new 52-week high on Wednesday following a better than expected earnings announcement. The stock traded as high as $81.34 and last traded at $80.83, with a volume of 364286 shares. The stock had previously closed at $75.63.

The industrial products company reported $1.03 earnings per share for the quarter, beating the consensus estimate of $1.02 by $0.01. Donaldson had a return on equity of 28.86% and a net margin of 9.94%.The firm's revenue for the quarter was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.94 EPS. Donaldson has set its FY 2026 guidance at 3.920-4.080 EPS.

Donaldson Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Tuesday, August 12th will be given a dividend of $0.30 per share. The ex-dividend date is Tuesday, August 12th. This represents a $1.20 annualized dividend and a yield of 1.5%. Donaldson's payout ratio is 40.27%.

Wall Street Analyst Weigh In

DCI has been the topic of several analyst reports. Morgan Stanley reiterated an "underweight" rating and set a $69.00 target price (up from $65.00) on shares of Donaldson in a research report on Friday, June 6th. Robert W. Baird boosted their price objective on Donaldson from $76.00 to $78.00 and gave the company an "outperform" rating in a research report on Wednesday, June 4th. Finally, Wall Street Zen downgraded Donaldson from a "buy" rating to a "hold" rating in a research report on Saturday, July 5th. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $70.00.

Institutional Investors Weigh In On Donaldson

Several large investors have recently made changes to their positions in DCI. Kingstone Capital Partners Texas LLC bought a new stake in shares of Donaldson in the second quarter worth about $679,475,000. Kayne Anderson Rudnick Investment Management LLC increased its stake in Donaldson by 75.3% during the first quarter. Kayne Anderson Rudnick Investment Management LLC now owns 3,330,602 shares of the industrial products company's stock worth $223,350,000 after acquiring an additional 1,430,120 shares during the last quarter. Norges Bank bought a new stake in Donaldson during the second quarter worth approximately $68,759,000. Carnegie Investment Counsel bought a new stake in Donaldson during the first quarter worth approximately $23,147,000. Finally, Fiduciary Management Inc. WI increased its stake in Donaldson by 13.1% during the first quarter. Fiduciary Management Inc. WI now owns 2,499,756 shares of the industrial products company's stock worth $167,634,000 after acquiring an additional 290,477 shares during the last quarter. 82.81% of the stock is owned by institutional investors.

Donaldson Stock Up 6.9%

The company has a 50 day simple moving average of $71.60 and a two-hundred day simple moving average of $68.94. The company has a quick ratio of 1.24, a current ratio of 1.94 and a debt-to-equity ratio of 0.44. The company has a market capitalization of $9.42 billion, a P/E ratio of 27.09, a PEG ratio of 1.84 and a beta of 0.99.

Donaldson Company Profile

Donaldson Company, Inc manufactures and sells filtration systems and replacement parts worldwide. The company operates through three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. Its Mobile Solutions segment provides replacement filters for air and liquid filtration applications, such as air filtration systems; liquid filtration systems for fuel, lube, and hydraulic applications; exhaust and emissions systems and sensors; indicators; and monitoring systems.

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