Ajita Rajendra, a director at Donaldson Company, Inc. (NYSE: DCI), sold 19,800 shares of the company’s stock on December 5, 2023. The shares were sold at an average price of $92.04, resulting in a total transaction value of $1,822,392.00. Following this sale, Rajendra now holds 43,993 shares, which are valued at approximately $4,049,115.72. This sale represents a significant 31.04% decrease in Rajendra’s ownership stake in the company.
The transaction was disclosed in a filing with the Securities and Exchange Commission (SEC), which provides transparency regarding insider trading activities.
Stock Performance and Company Financials
On the day following the sale, shares of Donaldson Company traded down by $0.46, closing at $91.98 during Monday’s session. The trading volume reached 358,701 shares, noticeably lower than the average volume of 604,575 shares. Donaldson currently boasts a market capitalization of $10.61 billion, with a price-to-earnings ratio of 28.67 and a price-to-earnings-growth ratio of 2.29. The stock has fluctuated significantly over the past year, with a low of $57.45 and a high of $95.00.
In terms of financial health, Donaldson reported a quick ratio of 1.39, a current ratio of 2.15, and a debt-to-equity ratio of 0.44. The company last disclosed its earnings on December 4, 2023, announcing earnings per share (EPS) of $0.94 for the quarter, surpassing analysts’ expectations of $0.93. Donaldson’s net margin was recorded at 10.25%, and the return on equity stood at 30.24%. The firm’s revenue for the quarter was $935.40 million, exceeding the consensus estimate of $922.68 million.
Institutional Activity and Analyst Ratings
Recent changes among institutional investors reflect a growing interest in Donaldson. Focus Partners Wealth increased its holdings by 314.0% during the first quarter, acquiring an additional 43,254 shares and raising its total to 57,028 shares valued at $3,824,000. Similarly, Brandywine Global Investment Management LLC and Deutsche Bank AG made notable investments, with Deutsche Bank increasing its stake by 112.6%.
Overall, hedge funds and other institutional investors now own 82.81% of Donaldson’s stock, reflecting a solid institutional backing for the company.
Equities research analysts have also been bullish on the stock, with several upgrades in recent weeks. Morgan Stanley recently upgraded Donaldson from an “underweight” to an “equal weight” rating, raising its target price from $72.00 to $84.00. Other analysts, such as those from Robert W. Baird and Stifel Nicolaus, have set price objectives of $100.00 and $96.00, respectively. Currently, the stock holds an average rating of “Moderate Buy” with a target price of $93.33.
Donaldson Company, Inc. continues to be a significant player in the industrial products sector, specializing in filtration systems and replacement parts across three segments: Mobile Solutions, Industrial Solutions, and Life Sciences. The company’s robust financial performance and positive analyst outlook suggest a strong position in the market as it approaches the fiscal year ahead.
