Donaldson (NYSE:DCI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Donaldson has a choppy earnings surprise history, having beaten estimates twice in the trailing four quarters for as many beats. Donaldson’s Engine Products segment has been showing great momentum, benefiting from strength in original equipment business, stabilization in market conditions and robust sales of replacement parts. A rebound in heavy duty truck production, past and new program wins and strong demand in the massive Chinese market are adding to Donaldson’s growth. However, on the flip side, the company’s operations remain vulnerable to weakness in the gas turbine market. Also, Donaldson’s gross margins are being compressed due to inflation, which is affecting the outlay on wages and raw materials like steel. Over the past year, the company’s shares have underperformed the industry average.”

Several other brokerages also recently commented on DCI. Gabelli upgraded shares of Donaldson from a “neutral” rating to a “buy” rating in a research note on Wednesday, March 7th. They noted that the move was a valuation call. Stifel Nicolaus reduced their target price on shares of Donaldson from $53.00 to $51.00 and set a “hold” rating on the stock in a research note on Wednesday, March 7th. TheStreet downgraded shares of Donaldson from an “a-” rating to a “c+” rating in a research note on Tuesday, March 6th. Finally, Edward Jones upgraded shares of Donaldson from a “hold” rating to a “buy” rating in a research note on Wednesday, March 28th. Five investment analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company currently has an average rating of “Hold” and an average price target of $51.60.

Shares of NYSE:DCI opened at $47.20 on Wednesday. Donaldson has a 52 week low of $42.59 and a 52 week high of $52.20. The company has a debt-to-equity ratio of 0.81, a quick ratio of 2.15 and a current ratio of 2.94. The firm has a market capitalization of $6.09 billion, a PE ratio of 27.93, a PEG ratio of 2.05 and a beta of 1.15.

Donaldson (NYSE:DCI) last issued its earnings results on Wednesday, May 30th. The industrial products company reported $0.53 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.52 by $0.01. Donaldson had a net margin of 5.29% and a return on equity of 29.25%. The company had revenue of $700.00 million for the quarter, compared to the consensus estimate of $682.68 million. During the same quarter in the previous year, the company earned $0.45 EPS. The firm’s revenue for the quarter was up 15.1% compared to the same quarter last year. sell-side analysts forecast that Donaldson will post 1.98 EPS for the current year.

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. BlackRock Inc. lifted its position in Donaldson by 3.8% during the 1st quarter. BlackRock Inc. now owns 11,182,902 shares of the industrial products company’s stock worth $503,789,000 after buying an additional 404,365 shares in the last quarter. Atlanta Capital Management Co. L L C lifted its position in Donaldson by 13.1% during the 4th quarter. Atlanta Capital Management Co. L L C now owns 3,407,450 shares of the industrial products company’s stock worth $166,794,000 after buying an additional 393,830 shares in the last quarter. Kayne Anderson Rudnick Investment Management LLC lifted its position in Donaldson by 6.7% during the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,099,219 shares of the industrial products company’s stock worth $94,570,000 after buying an additional 132,476 shares in the last quarter. Arrowstreet Capital Limited Partnership lifted its position in Donaldson by 8.5% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,231,453 shares of the industrial products company’s stock worth $60,280,000 after buying an additional 96,015 shares in the last quarter. Finally, Artisan Partners Limited Partnership lifted its position in Donaldson by 5.4% during the 1st quarter. Artisan Partners Limited Partnership now owns 1,162,608 shares of the industrial products company’s stock worth $52,376,000 after buying an additional 59,962 shares in the last quarter. Institutional investors and hedge funds own 77.35% 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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Analyst Recommendations for Donaldson (NYSE:DCI)

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