Donaldson (NYSE:DCI) Hits New 12-Month High – Still a Buy?

Donaldson Company, Inc. (NYSE:DCI)’s share price hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $111.36 and last traded at $110.4550, with a volume of 32296 shares trading hands. The stock had previously closed at $109.57.

Analysts Set New Price Targets

DCI has been the subject of a number of research reports. Morgan Stanley raised Donaldson from an “underweight” rating to an “equal weight” rating and lifted their price target for the stock from $72.00 to $84.00 in a research report on Monday, November 24th. Weiss Ratings reiterated a “buy (b)” rating on shares of Donaldson in a research report on Friday, January 9th. Robert W. Baird set a $110.00 price objective on shares of Donaldson in a research note on Monday, February 2nd. Jefferies Financial Group increased their price objective on shares of Donaldson to $123.00 and gave the stock a “buy” rating in a research note on Monday, February 2nd. Finally, Stifel Nicolaus raised their target price on Donaldson from $90.00 to $96.00 and gave the stock a “hold” rating in a report on Friday, December 5th. Three investment analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $103.25.

Donaldson Stock Up 0.2%

The company has a current ratio of 2.15, a quick ratio of 1.39 and a debt-to-equity ratio of 0.44. The business has a fifty day moving average of $97.14 and a two-hundred day moving average of $86.73. The company has a market cap of $12.71 billion, a price-to-earnings ratio of 34.32, a PEG ratio of 2.73 and a beta of 1.00.

Donaldson (NYSE:DCI) last announced its earnings results on Wednesday, December 3rd. The industrial products company reported $0.94 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.93 by $0.01. The firm had revenue of $935.40 million for the quarter, compared to analyst estimates of $922.68 million. Donaldson had a return on equity of 30.24% and a net margin of 10.25%.The business’s revenue was up 3.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.83 EPS. As a group, equities analysts anticipate that Donaldson Company, Inc. will post 3.64 EPS for the current fiscal year.

Donaldson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, February 27th. Investors of record on Thursday, February 12th will be given a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Thursday, February 12th. Donaldson’s payout ratio is presently 37.38%.

Insiders Place Their Bets

In other news, Director Ajita G. Rajendra sold 19,800 shares of the firm’s stock in a transaction dated Friday, December 5th. The shares were sold at an average price of $92.04, for a total value of $1,822,392.00. Following the transaction, the director directly owned 43,993 shares of the company’s stock, valued at approximately $4,049,115.72. This trade represents a 31.04% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Bradley J. Pogalz sold 566 shares of the company’s stock in a transaction dated Tuesday, December 9th. The shares were sold at an average price of $91.57, for a total transaction of $51,828.62. Following the sale, the chief financial officer directly owned 434 shares of the company’s stock, valued at approximately $39,741.38. This represents a 56.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 2.20% of the company’s stock.

Institutional Trading of Donaldson

Several large investors have recently added to or reduced their stakes in the stock. William Blair Investment Management LLC boosted its position in shares of Donaldson by 26,235.7% during the 4th quarter. William Blair Investment Management LLC now owns 1,707,872 shares of the industrial products company’s stock valued at $151,420,000 after acquiring an additional 1,701,387 shares during the last quarter. Norges Bank acquired a new stake in Donaldson during the fourth quarter worth $120,186,000. Victory Capital Management Inc. raised its position in Donaldson by 6,069.9% in the third quarter. Victory Capital Management Inc. now owns 1,178,884 shares of the industrial products company’s stock valued at $96,492,000 after purchasing an additional 1,159,777 shares during the period. Fuller & Thaler Asset Management Inc. grew its holdings in shares of Donaldson by 22.0% during the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 2,109,595 shares of the industrial products company’s stock worth $187,037,000 after purchasing an additional 380,419 shares during the period. Finally, Arbejdsmarkedets Tillaegspension purchased a new position in shares of Donaldson during the 4th quarter worth $22,872,000. 82.81% of the stock is currently owned by hedge funds and other institutional investors.

Donaldson Company Profile

Donaldson Company, Inc (NYSE: DCI) is a global provider of filtration systems and replacement parts for a wide range of industries. The company develops and manufactures air, liquid and gas filtration solutions for engine and industrial applications, helping customers improve performance, lower emissions and extend equipment life. Donaldson’s product portfolio includes engine air intake filters, fuel filters, hydraulic filters, compressor filters, dust collection systems and gas turbine air intake systems.

Serving markets such as agriculture, construction, mining, power generation, aerospace and original equipment manufacturing, Donaldson operates through two primary business segments: Engine Products and Industrial Products.