Donaldson Company, Inc. (NYSE:DCI) Receives Consensus Rating of “Moderate Buy” from Brokerages

Donaldson Company, Inc. (NYSE:DCI) has received a consensus recommendation of “Moderate Buy” from the five ratings firms that are presently covering the company, MarketBeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month price target among brokerages that have issued ratings on the stock in the last year is $100.60.

DCI has been the subject of several research reports. Jefferies Financial Group upped their price objective on shares of Donaldson to $123.00 and gave the stock a “buy” rating in a report on Monday, February 2nd. Weiss Ratings restated a “buy (b)” rating on shares of Donaldson in a report on Friday, January 9th. Morgan Stanley raised Donaldson from an “underweight” rating to an “equal weight” rating and lifted their price objective for the company from $72.00 to $84.00 in a research report on Monday, November 24th. Robert W. Baird decreased their target price on Donaldson from $110.00 to $104.00 and set an “outperform” rating for the company in a research report on Friday. Finally, Stifel Nicolaus raised their target price on Donaldson from $90.00 to $96.00 and gave the company a “hold” rating in a research note on Friday, December 5th.

Insider Transactions at Donaldson

In other Donaldson news, CFO Bradley J. Pogalz sold 566 shares of the firm’s stock in a transaction that occurred on Tuesday, December 9th. The shares were sold at an average price of $91.57, for a total transaction of $51,828.62. Following the completion of the transaction, the chief financial officer owned 434 shares of the company’s stock, valued at approximately $39,741.38. This trade represents a 56.60% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Ajita G. Rajendra sold 19,800 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The stock was sold at an average price of $92.04, for a total value of $1,822,392.00. Following the completion of the sale, the director directly owned 43,993 shares in the company, valued at approximately $4,049,115.72. This represents a 31.04% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 2.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Verdence Capital Advisors LLC grew its stake in shares of Donaldson by 1.2% in the fourth quarter. Verdence Capital Advisors LLC now owns 8,603 shares of the industrial products company’s stock worth $763,000 after acquiring an additional 101 shares during the last quarter. TIAA Trust National Association grew its position in Donaldson by 2.0% during the 4th quarter. TIAA Trust National Association now owns 5,589 shares of the industrial products company’s stock valued at $496,000 after purchasing an additional 108 shares during the last quarter. Perigon Wealth Management LLC increased its stake in Donaldson by 3.6% during the 4th quarter. Perigon Wealth Management LLC now owns 3,440 shares of the industrial products company’s stock valued at $305,000 after purchasing an additional 118 shares in the last quarter. Signaturefd LLC raised its holdings in Donaldson by 9.6% in the fourth quarter. Signaturefd LLC now owns 1,403 shares of the industrial products company’s stock worth $124,000 after buying an additional 123 shares during the last quarter. Finally, Quadrant Capital Group LLC lifted its stake in shares of Donaldson by 2.4% in the fourth quarter. Quadrant Capital Group LLC now owns 5,645 shares of the industrial products company’s stock worth $500,000 after buying an additional 132 shares in the last quarter. Hedge funds and other institutional investors own 82.81% of the company’s stock.

Donaldson Stock Up 0.7%

Shares of NYSE:DCI opened at $92.84 on Friday. The stock’s 50-day moving average is $100.00 and its 200 day moving average is $89.25. The company has a market cap of $10.71 billion, a PE ratio of 29.01, a P/E/G ratio of 2.32 and a beta of 1.00. The company has a debt-to-equity ratio of 0.44, a current ratio of 2.15 and a quick ratio of 1.39. Donaldson has a 1 year low of $57.45 and a 1 year high of $112.84.

Donaldson (NYSE:DCI) last issued its quarterly earnings data on Thursday, February 26th. The industrial products company reported $0.83 earnings per share for the quarter, missing analysts’ consensus estimates of $0.90 by ($0.07). Donaldson had a return on equity of 30.34% and a net margin of 10.09%.The business had revenue of $896.30 million during the quarter, compared to the consensus estimate of $898.64 million. During the same quarter in the prior year, the business posted $0.83 earnings per share. Donaldson’s quarterly revenue was up 3.0% compared to the same quarter last year. Donaldson has set its FY 2026 guidance at 3.930-4.010 EPS. Sell-side analysts anticipate that Donaldson will post 3.64 EPS for the current year.

Donaldson Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Shareholders of record on Thursday, February 12th were given a dividend of $0.30 per share. The ex-dividend date of this dividend was Thursday, February 12th. This represents a $1.20 annualized dividend and a yield of 1.3%. Donaldson’s dividend payout ratio (DPR) is currently 37.38%.

Donaldson News Summary

Here are the key news stories impacting Donaldson this week:

• Positive Sentiment: Q2 revenue grew ~3% year‑over‑year and management set FY‑2026 sales guidance that implies up to ~5% organic sales growth, giving investors some top‑line visibility. Donaldson’s Q2 Earnings Miss Estimates, Revenues Increase Y/Y
• Neutral Sentiment: Management will present at the Raymond James Institutional Investors Conference on March 4, giving investors an opportunity for direct Q&A and more color on demand and margins. Donaldson Company to Present at the Raymond James 47th Annual Institutional Investors Conference
• Neutral Sentiment: Robert W. Baird trimmed its price target from $110 to $104 but kept an Outperform rating — a slight analytical downgrade but still constructive relative to the market. Price target lowered by Robert W. Baird
• Negative Sentiment: Q2 EPS missed consensus (reported ~$0.78–0.83 vs. ~$0.90 expected) and margins compressed, driven by cost/inflation and weaker aftermarket demand — the primary catalyst for the selloff. Donaldson Company, Inc. Q2 2026 Earnings Call Transcript
• Negative Sentiment: Management trimmed EPS guidance for FY‑2026 (guidance band modestly below consensus), and commentary flagged softer demand after tariff front‑loading — investors reacted to the lowered profit outlook. Donaldson shares sink after revenue miss, lowered profit outlook
• Negative Sentiment: Recent acquisition (Facet Filtration) raised leverage (management flagged higher net debt/EBITDA near ~1.8–2.0x) and is expected to be accretive only later (FY‑2027), creating near‑term earnings pressure and valuation concerns. Rich Multiple And Weak Results Put Donaldson In The Penalty Box
• Negative Sentiment: Short interest rose meaningfully in February (≈25% increase month‑over‑month), signaling growing bearish positioning that can amplify downside on negative headlines. (Data summary from recent market reports.)

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.