Donaldson (NYSE:DCI) Sets New 52-Week High on Better-Than-Expected Earnings

Shares of Donaldson Company, Inc. (NYSE:DCI) hit a new 52-week high during trading on Thursday following a better than expected earnings announcement. The stock traded as high as $93.48 and last traded at $93.7120, with a volume of 158333 shares. The stock had previously closed at $87.60.

The industrial products company reported $0.94 earnings per share for the quarter, beating the consensus estimate of $0.93 by $0.01. Donaldson had a return on equity of 29.50% and a net margin of 9.94%.The business had revenue of $935.40 million for the quarter, compared to the consensus estimate of $922.68 million. During the same quarter last year, the business posted $0.83 earnings per share. The business’s quarterly revenue was up 3.9% compared to the same quarter last year. Donaldson has set its FY 2026 guidance at 3.950-4.110 EPS.

Donaldson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 22nd. Stockholders of record on Friday, December 5th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Friday, December 5th. Donaldson’s dividend payout ratio (DPR) is currently 39.34%.

Wall Street Analysts Forecast Growth

DCI has been the subject of several research reports. Morgan Stanley raised shares of Donaldson from an “underweight” rating to an “equal weight” rating and upped their price objective for the company from $72.00 to $84.00 in a research note on Monday, November 24th. Robert W. Baird lifted their price objective on Donaldson from $85.00 to $96.00 and gave the stock an “outperform” rating in a research report on Wednesday. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Donaldson in a research note on Tuesday, October 14th. Wall Street Zen raised shares of Donaldson from a “hold” rating to a “buy” rating in a report on Friday, October 3rd. Finally, Stifel Nicolaus lifted their target price on shares of Donaldson from $84.00 to $90.00 and gave the stock a “hold” rating in a research note on Monday, November 24th. Two analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $90.00.

Institutional Trading of Donaldson

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Cetera Investment Advisers lifted its holdings in Donaldson by 6.0% during the first quarter. Cetera Investment Advisers now owns 11,274 shares of the industrial products company’s stock worth $756,000 after acquiring an additional 639 shares in the last quarter. LPL Financial LLC raised its holdings in Donaldson by 3.0% during the 1st quarter. LPL Financial LLC now owns 69,858 shares of the industrial products company’s stock worth $4,685,000 after buying an additional 2,053 shares during the period. XTX Topco Ltd acquired a new position in shares of Donaldson in the first quarter valued at approximately $268,000. Natixis Advisors LLC increased its position in shares of Donaldson by 9.1% during the first quarter. Natixis Advisors LLC now owns 21,007 shares of the industrial products company’s stock worth $1,409,000 after acquiring an additional 1,759 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. raised its holdings in shares of Donaldson by 2.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 778,962 shares of the industrial products company’s stock worth $52,237,000 after acquiring an additional 17,145 shares during the period. 82.81% of the stock is owned by institutional investors.

Donaldson Stock Performance

The stock’s 50 day moving average is $84.63 and its two-hundred day moving average is $77.16. The stock has a market capitalization of $10.84 billion, a price-to-earnings ratio of 30.77, a price-to-earnings-growth ratio of 2.19 and a beta of 0.99. The company has a current ratio of 1.93, a quick ratio of 1.25 and a debt-to-equity ratio of 0.43.

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.