Donaldson (DCI) Shares Down 9.5% on Disappointing Earnings

Donaldson Company, Inc. (NYSE:DCI)’s share price traded down 9.5% on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $49.64 and last traded at $51.29. 1,745,060 shares traded hands during mid-day trading, an increase of 261% from the average session volume of 483,169 shares. The stock had previously closed at $56.68.

The industrial products company reported $0.56 earnings per share for the quarter, missing analysts’ consensus estimates of $0.57 by ($0.01). Donaldson had a net margin of 6.59% and a return on equity of 31.09%. The business had revenue of $701.40 million during the quarter, compared to analysts’ expectations of $700.98 million. During the same period last year, the business posted $0.46 earnings per share. The company’s revenue for the quarter was up 8.8% compared to the same quarter last year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 21st. Investors of record on Tuesday, December 11th will be issued a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 1.48%. The ex-dividend date of this dividend is Monday, December 10th. Donaldson’s dividend payout ratio (DPR) is presently 38.00%.

A number of research analysts recently weighed in on the stock. Oppenheimer reissued a “hold” rating on shares of Donaldson in a report on Tuesday. Zacks Investment Research lowered shares of Donaldson from a “buy” rating to a “hold” rating in a research note on Tuesday, November 13th. Stifel Nicolaus lifted their price objective on shares of Donaldson from $54.00 to $60.00 and gave the stock a “hold” rating in a research note on Friday, September 14th. Finally, ValuEngine raised shares of Donaldson from a “hold” rating to a “buy” rating in a research note on Friday, September 7th. Three investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus price target of $60.00.

In other Donaldson news, Director Willard D. Oberton sold 14,400 shares of Donaldson stock in a transaction on Wednesday, September 12th. The shares were sold at an average price of $56.85, for a total transaction of $818,640.00. Following the completion of the transaction, the director now directly owns 30,451 shares of the company’s stock, valued at $1,731,139.35. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Richard Brent Lewis sold 3,209 shares of Donaldson stock in a transaction on Friday, September 14th. The stock was sold at an average price of $58.99, for a total transaction of $189,298.91. Following the transaction, the vice president now directly owns 4,000 shares of the company’s stock, valued at $235,960. The disclosure for this sale can be found here. 1.35% of the stock is owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Schwab Charles Investment Management Inc. boosted its stake in Donaldson by 7.0% during the second quarter. Schwab Charles Investment Management Inc. now owns 502,748 shares of the industrial products company’s stock worth $22,684,000 after buying an additional 32,890 shares during the period. BNP Paribas Arbitrage SA boosted its stake in shares of Donaldson by 134.1% during the second quarter. BNP Paribas Arbitrage SA now owns 12,187 shares of the industrial products company’s stock valued at $550,000 after purchasing an additional 6,981 shares during the period. Arizona State Retirement System boosted its stake in shares of Donaldson by 1.6% during the third quarter. Arizona State Retirement System now owns 91,581 shares of the industrial products company’s stock valued at $5,336,000 after purchasing an additional 1,413 shares during the period. Mutual of America Capital Management LLC boosted its stake in shares of Donaldson by 3.8% during the second quarter. Mutual of America Capital Management LLC now owns 111,320 shares of the industrial products company’s stock valued at $5,023,000 after purchasing an additional 4,100 shares during the period. Finally, Swiss National Bank boosted its stake in shares of Donaldson by 4.4% during the second quarter. Swiss National Bank now owns 226,200 shares of the industrial products company’s stock valued at $10,206,000 after purchasing an additional 9,500 shares during the period. 81.42% of the stock is owned by institutional investors.

The company has a market cap of $7.18 billion, a PE ratio of 25.65, a price-to-earnings-growth ratio of 2.08 and a beta of 1.25. The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.69 and a current ratio of 2.40.

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Donaldson Company Profile (NYSE:DCI)

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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