Donaldson (NYSE:DCI) Reaches New 12-Month High Following Analyst Upgrade

Key Points

• Donaldson's stock reached a new 12-month high of $83.41 following an upgrade from Wall Street Zen from a hold to a buy rating.
• Multiple analysts have adjusted their price targets for Donaldson, with Robert W. Baird increasing their target to $85.00 and Morgan Stanley raising theirs to $72.00.
• The company's recent quarterly earnings exceeded expectations with an EPS of $1.03, and it announced a $0.30 dividend, resulting in a yield of 1.4%.

Donaldson Company, Inc. (NYSE:DCI - Get Free Report)'s stock price hit a new 52-week high during trading on Monday after Wall Street Zen upgraded the stock from a hold rating to a buy rating. The company traded as high as $83.36 and last traded at $83.41, with a volume of 92371 shares traded. The stock had previously closed at $82.61.

A number of other research firms also recently issued reports on DCI. Morgan Stanley lifted their price objective on shares of Donaldson from $69.00 to $72.00 and gave the company an "underweight" rating in a report on Tuesday, September 2nd. Robert W. Baird lifted their price target on shares of Donaldson from $78.00 to $85.00 and gave the company an "outperform" rating in a research note on Friday, August 29th. Stifel Nicolaus increased their price objective on shares of Donaldson from $69.00 to $84.00 and gave the stock a "hold" rating in a research note on Thursday, August 28th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Donaldson in a report on Saturday, September 27th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Donaldson presently has an average rating of "Hold" and a consensus price target of $80.33.

Insider Transactions at Donaldson

In other Donaldson news, President Guillermo Briseno sold 13,500 shares of the company's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $79.03, for a total transaction of $1,066,905.00. Following the transaction, the president owned 25,309 shares in the company, valued at approximately $2,000,170.27. This represents a 34.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Amy C. Becker sold 18,500 shares of Donaldson stock in a transaction on Thursday, August 28th. The stock was sold at an average price of $81.71, for a total transaction of $1,511,635.00. Following the transaction, the insider directly owned 44,645 shares in the company, valued at $3,647,942.95. This represents a 29.30% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 63,900 shares of company stock valued at $5,129,264 in the last quarter. 2.70% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Donaldson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Kingstone Capital Partners Texas LLC bought a new stake in shares of Donaldson during the 2nd quarter valued at about $679,475,000. Kayne Anderson Rudnick Investment Management LLC lifted its position 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 valued at $223,350,000 after purchasing an additional 1,430,120 shares during the last quarter. Norges Bank purchased a new position in Donaldson in the 2nd quarter worth approximately $68,759,000. Carnegie Investment Counsel bought a new position in shares of Donaldson in the 1st quarter worth $23,147,000. Finally, Fiduciary Management Inc. WI raised its position in shares of Donaldson by 13.1% during the 1st quarter. Fiduciary Management Inc. WI now owns 2,499,756 shares of the industrial products company's stock valued at $167,634,000 after buying an additional 290,477 shares in the last quarter. 82.81% of the stock is currently owned by hedge funds and other institutional investors.

Donaldson Price Performance

The company has a market capitalization of $9.65 billion, a PE ratio of 27.32, a price-to-earnings-growth ratio of 1.96 and a beta of 0.99. The company has a quick ratio of 1.25, a current ratio of 1.93 and a debt-to-equity ratio of 0.43. The firm's 50-day moving average is $77.57 and its 200-day moving average is $71.28.

Donaldson (NYSE:DCI - Get Free Report) last announced its quarterly earnings data on Wednesday, August 27th. The industrial products company reported $1.03 EPS for the quarter, beating the consensus estimate of $1.02 by $0.01. The firm had revenue of $980.70 million for the quarter, compared to analyst estimates of $951.59 million. Donaldson had a return on equity of 29.50% and a net margin of 9.94%.The company's revenue was up 4.8% on a year-over-year basis. During the same period in the prior year, the company earned $0.94 EPS. Donaldson has set its FY 2026 guidance at 3.920-4.080 EPS. Equities analysts predict that Donaldson Company, Inc. will post 3.64 earnings per share for the current fiscal year.

Donaldson Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 27th. Shareholders of record on Tuesday, August 12th were issued a $0.30 dividend. The ex-dividend date was Tuesday, August 12th. This represents a $1.20 annualized dividend and a yield of 1.4%. Donaldson's dividend payout ratio (DPR) is 39.34%.

About Donaldson

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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