Wall Street Zen Upgrades Donaldson (NYSE:DCI) to Buy

Key Points

• Wall Street Zen has upgraded Donaldson (NYSE:DCI) from a "hold" rating to a "buy" rating, indicating a more optimistic outlook for the stock.
• The company reported $1.03 earnings per share (EPS) for the last quarter, exceeding analysts' expectations and showing a revenue increase of 4.8% year-over-year.
• Insider trading activity reveals significant selling, with two insiders reporting a total of 63,900 shares sold in the last quarter, highlighting potential concerns about insider sentiment.

Donaldson (NYSE:DCI - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Friday.

Other equities analysts have also recently issued reports about the stock. Weiss Ratings restated a "buy (b-)" rating on shares of Donaldson in a research report on Saturday, September 27th. Morgan Stanley upped their price objective on shares of Donaldson from $69.00 to $72.00 and gave the company an "underweight" rating in a research note on Tuesday, September 2nd. Stifel Nicolaus upped their price objective on shares of Donaldson from $69.00 to $84.00 and gave the company a "hold" rating in a research note on Thursday, August 28th. Finally, Robert W. Baird upped their price objective 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. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $80.33.

Donaldson Price Performance

DCI stock traded down $0.12 during trading on Friday, reaching $82.60. 416,370 shares of the company were exchanged, compared to its average volume of 630,032. The company has a 50-day moving average of $77.57 and a two-hundred day moving average of $71.24. The company has a market capitalization of $9.57 billion, a price-to-earnings ratio of 27.08, a P/E/G ratio of 1.96 and a beta of 0.99. Donaldson has a twelve month low of $57.45 and a twelve month high of $83.31. The company has a debt-to-equity ratio of 0.43, a current ratio of 1.93 and a quick ratio of 1.25.

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

Insider Activity

In related news, insider Amy C. Becker sold 18,500 shares of the firm's stock in a transaction dated Thursday, August 28th. The shares were sold at an average price of $81.71, for a total transaction of $1,511,635.00. Following the completion of the sale, the insider owned 44,645 shares in the company, valued at approximately $3,647,942.95. This trade represents a 29.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Trudy A. Rautio sold 31,900 shares of the firm's stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $79.96, for a total transaction of $2,550,724.00. Following the sale, the director owned 29,330 shares of the company's stock, valued at $2,345,226.80. This trade represents a 52.10% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 63,900 shares of company stock worth $5,129,264 over the last quarter. Insiders own 2.70% of the company's stock.

Institutional Trading of Donaldson

A number of large investors have recently added to or reduced their stakes in DCI. Hantz Financial Services Inc. boosted its position in Donaldson by 5,112.5% during the second quarter. Hantz Financial Services Inc. now owns 417 shares of the industrial products company's stock worth $29,000 after purchasing an additional 409 shares during the period. Cullen Frost Bankers Inc. bought a new position in shares of Donaldson in the first quarter valued at approximately $29,000. NewSquare Capital LLC bought a new position in shares of Donaldson in the second quarter valued at approximately $34,000. Brooklyn Investment Group boosted its position in shares of Donaldson by 113.9% in the first quarter. Brooklyn Investment Group now owns 601 shares of the industrial products company's stock valued at $40,000 after acquiring an additional 320 shares during the period. Finally, Hoese & Co LLP boosted its position in shares of Donaldson by 266.7% in the second quarter. Hoese & Co LLP now owns 660 shares of the industrial products company's stock valued at $46,000 after acquiring an additional 480 shares during the period. Hedge funds and other institutional investors own 82.81% of the company's stock.

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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