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Donaldson

Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.

Donaldson Co Inc

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Management

Donaldson Company Announced CFO Scott Robinson Will Retire On October 31, 2024 And Brad Pogalz Will Assume The Role

A significant insider transaction involving the exercise of company stock options was reported on October 8, by Willard D Oberton, Director at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>), as per the latest SEC filing.
What Happened: In an insider options sale disclosed in a Form 4 filing on Tuesday with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000162//Archives/edgar/data/29644/000002964424000162/0000029644-24-000162-index.htm">U.S. Securities and Exchange Commission</a>, Oberton, Director at Donaldson, exercised stock options for 2,700 shares of DCI. The transaction value amounted to $119,907.
As of Wednesday morning, Donaldson shares are down by 0.0%, with a current price of $72.84. This implies that Oberton's 2,700 shares have a value of $119,907.
<h3>Delving into Donaldson's Background</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Unraveling the Financial Story of Donaldson</h3>
Revenue Growth: Donaldson displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 6.36%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Industrials sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company faces challenges with a low gross margin of 35.79%, suggesting potential difficulties in cost control and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Donaldson's EPS reflects a decline, falling below the industry average with a current EPS of 0.91.
</li>
</ul>
Debt Management: Donaldson's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.36.
Insights into Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.55, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 2.49 is lower than the industry average, implying a discounted valuation for Donaldson's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Donaldson's EV/EBITDA ratio at 13.78 suggests potential undervaluation, falling below industry averages.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Exploring the Significance of Insider Trading</h3>
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
<h3>Unlocking the Meaning of Transaction Codes</h3>
In the domain of transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Trading Ideas

Willard D Oberton Exercises Options, Realizes $119K

On September 30, it was revealed in an SEC filing that Scott Robinson, Chief Financial Officer at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) executed a significant exercise of company stock options.
What Happened: Robinson, Chief Financial Officer at Donaldson, made a strategic move by exercising stock options for 83,600 shares of DCI as detailed in a Form 4 filing on Monday with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000113//Archives/edgar/data/29644/000002964424000113/0000029644-24-000113-index.htm">U.S. Securities and Exchange Commission</a>. The transaction value amounted to $1,551,494.
As of Tuesday morning, Donaldson shares are down by 0.0%, with a current price of $73.7. This implies that Robinson's 83,600 shares have a value of $1,551,494.
<h3>Unveiling the Story Behind Donaldson</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Unraveling the Financial Story of Donaldson</h3>
Revenue Growth: Donaldson's remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 6.36%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Industrials sector.
Holistic Profitability Examination:
<ul>
<li>
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 35.79%, indicating potential difficulties in maintaining profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Donaldson's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.91.
</li>
</ul>
Debt Management: With a below-average debt-to-equity ratio of 0.36, Donaldson adopts a prudent financial strategy, indicating a balanced approach to debt management.
Navigating Market Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: The current P/E ratio of 21.8 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 2.52 is lower than the industry average, implying a discounted valuation for Donaldson's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio 13.93 is below the industry average, indicating that it may be relatively undervalued compared to peers.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Delving Into the Significance of Insider Transactions</h3>
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
<h3>Transaction Codes Worth Your Attention</h3>
When it comes to transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Strategic Sale: Scott Robinson Decides To Exercise Options Worth $1.55M At Donaldson

On September 30, it was revealed in an SEC filing that Scott Robinson, Chief Financial Officer at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) executed a significant exercise of company stock options.
What Happened: Robinson, Chief Financial Officer at Donaldson, exercised stock options for 83,600 shares of DCI stock. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000113//Archives/edgar/data/29644/000002964424000113/0000029644-24-000113-index.htm">U.S. Securities and Exchange Commission</a> on Monday. The exercise price of the options was $55.14 per share.
During Monday's morning session, Donaldson shares down by 0.0%, currently priced at $73.82. Considering the current price, Robinson's 83,600 shares have a total value of $1,567,378.
<h3>About Donaldson</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Donaldson's Financial Performance</h3>
Positive Revenue Trend: Examining Donaldson's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.81% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Navigating Financial Profits:
<ul>
<li>
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 35.79%, indicating potential difficulties in maintaining profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Donaldson's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.91.
</li>
</ul>
Debt Management: Donaldson's debt-to-equity ratio is below the industry average at 0.36, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics: A Closer Look
<ul>
<li>
Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 21.84, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.52, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 13.96, Donaldson presents an attractive value opportunity.
</li>
</ul>
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Illuminating the Importance of Insider Transactions</h3>
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>Cracking Transaction Codes</h3>
In the domain of transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Decision: Scott Robinson Exercises Options At Donaldson For $1.57M

Donaldson Company, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dci#NYSE">DCI</a>) recently unveiled its filtration services in France, Germany and Austria. The company plans to expand its presence in the food and beverage markets through this move.
Donaldson&#39;s filtration services will help manufacturers operate their filtration system, providing on-site help and customized solutions to achieve their sustainability, efficiency and effectiveness goals. DCI&#39;s services include testing the integrity of sterile air and liquid filters, calibrating equipment, measuring compressed air quality and managing filters through exchange, maintenance and setup.
With the launch of filtration services for food and beverage in France, Germany and Austria, DCI&#39;s customers will benefit from service teams that work closely with its network of more than 1,000 engineers, scientists and specialists worldwide. The new filtration services for the Life Sciences sector are based on a century of dependable service. The company had been planning to expand into the food and beverage markets in France, Germany and Austria, with goals for growth across Europe.
<h2>DCI&#39;s Zacks Rank and Price Performance</h2>
DCI currently carries a Zacks Rank #4 (Sell). In the year-to-date period, the company&#39;s shares have gained 11.1% compared with the industry&#39;s 25.3% growth.
<img alt="Zacks Investment Research" src="https://staticx-tuner.zacks.com/images/articles/charts/81/79027.jpg?v=1736680807" />
Image Source: Zacks Investment Research
Donaldson has been witnessing weakness in the on-road and off-road businesses. Lower levels of equipment production owing to softness in industrial markets, particularly in the United States and China, are affecting the on-road business. Weakness in agriculture markets and soft end-market demand in China have been impacting the off-road business. Also, challenged market conditions in dust collection and power generation verticals within the industrial filtration solutions business remain concerning.
<h2>Stocks to Consider</h2>
Some better-ranked companies are discussed below.
Tetra Tech, Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/ttek#NASDAQ">TTEK</a>) presently carries a Zacks Rank #2 (Buy).
The company delivered a trailing four-quarter average earnings surprise of 9.5%. In the past 60 days, the Zacks Consensus Estimate for TTEK&#39;s fiscal 2024 earnings has increased 0.8%.
Atmus Filtration Technologies Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/atmu#NYSE">ATMU</a>) currently carries a Zacks Rank of 2. ATMU delivered a trailing four-quarter average earnings surprise of 13.4%.
In the past 60 days, the consensus estimate for Atmus&#39; 2024 earnings has increased 3.1%.
Parker-Hannifin Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ph#NYSE">PH</a>) currently carries a Zacks Rank of 2. PH delivered a trailing four-quarter average earnings surprise of 2.6%.
In the past 60 days, the consensus estimate for Parker-Hannifin&#39;s fiscal 2025 earnings has increased 1.3%.
<a href="https://www.zacks.com/stock/news/2340748/donaldson-introduces-filtration-services-for-life-sciences?cid=CS-BENZ-FT-analyst_blog|company_news_corporate_actions-2340748">To read this article on Zacks.com click here.</a>

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Donaldson Introduces Filtration Services for Life Sciences

On September 24, it was revealed in an SEC filing that Tod E Carpenter, Chairman at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) executed a significant exercise of company stock options.
What Happened: A Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000103//Archives/edgar/data/29644/000002964424000103/0000029644-24-000103-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday revealed that Carpenter, Chairman at Donaldson in the Industrials sector, exercised stock options for 55,000 shares of DCI stock. The exercise price of the options was $36.57 per share.
The Wednesday morning update indicates Donaldson shares up by 0.04%, currently priced at $73.5. At this value, Carpenter's 55,000 shares are worth $2,031,012.
<h3>Unveiling the Story Behind Donaldson</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Unraveling the Financial Story of Donaldson</h3>
Revenue Growth: Over the 3 months period, Donaldson showcased positive performance, achieving a revenue growth rate of 0.81% as of 31 July, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.
Holistic Profitability Examination:
<ul>
<li>
Gross Margin: With a low gross margin of 35.79%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Donaldson exhibits below-average bottom-line performance with a current EPS of 0.91.
</li>
</ul>
Debt Management: With a below-average debt-to-equity ratio of 0.36, Donaldson adopts a prudent financial strategy, indicating a balanced approach to debt management.
Financial Valuation Breakdown:
<ul>
<li>
Price to Earnings (P/E) Ratio: The P/E ratio of 21.74 is lower than the industry average, implying a discounted valuation for Donaldson's stock.
</li>
<li>
Price to Sales (P/S) Ratio: The current P/S ratio of 2.51 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With a below-average EV/EBITDA ratio of 13.97, Donaldson presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
</li>
</ul>
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>The Relevance of Insider Transactions</h3>
Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
<h3>Understanding Crucial Transaction Codes</h3>
Delving into transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Tod E Carpenter At Donaldson Executes Options Exercise, Realizing $2.03M

Highlighted on September 23, it was unveiled in an SEC filing that Becker, Chief Legal Officer at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>), executed a significant transaction involving the exercise of company stock options.
What Happened: In an insider options sale disclosed in a Form 4 filing on Monday with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000099//Archives/edgar/data/29644/000002964424000099/0000029644-24-000099-index.htm">U.S. Securities and Exchange Commission</a>, Becker, Chief Legal Officer at Donaldson, exercised stock options for 14,500 shares of DCI. The transaction value amounted to $498,074.
Donaldson shares are trading up 0.67% at $73.13 at the time of this writing on Tuesday morning. Since the current price is $73.13, this makes Becker's 14,500 shares worth $498,074.
<h3>About Donaldson</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Donaldson: Delving into Financials</h3>
Revenue Growth: Donaldson's remarkable performance in 3 months is evident. As of 31 July, 2024, the company achieved an impressive revenue growth rate of 0.81%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Analyzing Profitability Metrics:
<ul>
<li>
Gross Margin: The company issues a cost efficiency warning with a low gross margin of 35.79%, indicating potential difficulties in maintaining profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Donaldson's EPS is below the industry average. The company faced challenges with a current EPS of 0.91. This suggests a potential decline in earnings.
</li>
</ul>
Debt Management: With a below-average debt-to-equity ratio of 0.36, Donaldson adopts a prudent financial strategy, indicating a balanced approach to debt management.
Assessing Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Donaldson's P/E ratio of 21.49 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: With a P/S ratio of 2.48 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio 13.81 is below the industry average, indicating that it may be relatively undervalued compared to peers.
</li>
</ul>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Why Insider Activity Matters in Finance</h3>
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
<h3>Unlocking the Meaning of Transaction Codes</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Strategic Sale: Amy C Becker Decides To Exercise Options Worth $498K At Donaldson

On September 24, it was revealed in an SEC filing that Tod E Carpenter, Chairman at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) executed a significant exercise of company stock options.
What Happened: Carpenter, Chairman at Donaldson, made a strategic move by exercising stock options for 55,000 shares of DCI as detailed in a Form 4 filing on Tuesday with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000103//Archives/edgar/data/29644/000002964424000103/0000029644-24-000103-index.htm">U.S. Securities and Exchange Commission</a>. The transaction value amounted to $1,983,850.
The latest update on Tuesday morning shows Donaldson shares down by 0.0%, trading at $72.64. At this price, Carpenter's 55,000 shares are worth $1,983,850.
<h3>All You Need to Know About Donaldson</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Financial Milestones: Donaldson's Journey</h3>
Positive Revenue Trend: Examining Donaldson's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.81% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Insights into Profitability:
<ul>
<li>
Gross Margin: With a low gross margin of 35.79%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Donaldson's EPS is below the industry average. The company faced challenges with a current EPS of 0.91. This suggests a potential decline in earnings.
</li>
</ul>
Debt Management: Donaldson's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.36.
Exploring Valuation Metrics Landscape:
<ul>
<li>
Price to Earnings (P/E) Ratio: Donaldson's P/E ratio of 21.49 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 2.48, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With a below-average EV/EBITDA ratio of 13.81, Donaldson presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
</li>
</ul>
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
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<h3>Navigating the Impact of Insider Transactions on Investments</h3>
Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Cracking Transaction Codes</h3>
When it comes to transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
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This article was generated by Benzinga's automated content engine and reviewed by an editor.

Chairman At Donaldson Exercises Options Worth $1.98M

A substantial insider activity was disclosed on September 19, as Owens, Director at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>), reported the exercise of a large sell of company stock options.
What Happened: Owens, Director at Donaldson, exercised stock options for 14,000 shares of DCI stock. This information was disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000097//Archives/edgar/data/29644/000002964424000097/0000029644-24-000097-index.htm">U.S. Securities and Exchange Commission</a> on Thursday. The exercise price of the options was $38.47 per share.
The latest update on Friday morning shows Donaldson shares down by 0.0%, trading at $73.17. At this price, Owens's 14,000 shares are worth $485,800.
<h3>Get to Know Donaldson Better</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.6 billion in revenue and $544 million in operating income in its fiscal 2024.
<h3>Donaldson: Financial Performance Dissected</h3>
Positive Revenue Trend: Examining Donaldson's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 0.81% as of 31 July, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: With a low gross margin of 35.79%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Donaldson's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.91.
</li>
</ul>
Debt Management: Donaldson's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.36.
Market Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: Donaldson's P/E ratio of 21.65 is below the industry average, suggesting the stock may be undervalued.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 2.5 is lower than the industry average, implying a discounted valuation for Donaldson's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio lower than industry averages at 13.91, Donaldson could be considered undervalued.
</li>
</ul>
Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>The Relevance of Insider Transactions</h3>
While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>Cracking Transaction Codes</h3>
In the domain of transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. <a href="https://www.benzinga.com/premium/ideas/benzinga-edge-checkout/?t=Be8be9arja3be22in8&amp;utm_source=benzinga-insights">Click here for access</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Engaging In Options Activity, James Owens Exercises Options Valued At $485K In Donaldson

Stifel analyst Nathan Jones maintains Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) with a Hold and lowers the price target from $76 to $71.

Price Target

Stifel Maintains Hold on Donaldson, Lowers Price Target to $71

Wall Street faces a wave of risk-off sentiment on Wednesday, as traders adopt a cautious stance ahead of NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) earnings, which are set to be released <a href="https://www.benzinga.com/trading-ideas/24/08/40604296/nvidias-next-earnings-report-could-swing-its-market-cap-by-300-billion-and-increase-the-s-p-500-gai">after the market close.</a>
At midday trading in New York, all major equity indices were in the red, weighed down by broad declines in chipmakers and tech stocks.
The iShares Semiconductor ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SOXX#NYSE">SOXX</a>) fell 2%, underperforming the broader tech-heavy Nasdaq 100, down 1.1%. 
The CBOE Volatility Index or VIX, a key barometer of the fear in the market, rose 8%. 
As the last of the Magnificent Seven megacaps to report earnings, Nvidia&#8217;s results are viewed as a crucial indicator of whether the recent market rebound has more room to run, potentially pushing toward new all-time highs, or if it&#8217;s time for investors to dial back risk.
Key metrics to watch include whether Nvidia surpasses the projected $28.7 billion in quarterly revenue — a staggering 156% increase from the same quarter last year — and $0.645 earnings per share, more than triple from the same period in 2022. 
Nvidia&#8217;s forward guidance will also be critical, as investors seek insight into the demand for its leading AI-related chips and any challenges posed by China.
In a significant achievement during Wednesday&#8217;s session, Warren Buffett&#8217;s Berkshire Hathaway Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) reached <a href="https://www.benzinga.com/top-stories/24/08/40604676/warren-buffetts-berkshire-hathaway-breaks-1-trillion-poll-points-to-big-pharma-not-tech-as-next-cont">the milestone of a $1 trillion market valuation.</a>
The U.S. dollar is showing a modest recovery, up 0.4% after closing Tuesday at its lowest level since July 2023. Treasury yields remain stable, while gold is struggling, down 0.6%, with silver experiencing a sharper 2% decline.
Oil prices continue to fall, with WTI crude down 1.3%, as traders unload the risk premium amid easing geopolitical tensions in the Middle East and less concerning Libyan production disruptions than initially feared.
Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) remains under pressure, down 1% to $58,850, following a more than 7% decline over the past two sessions.
<h1 class="wp-block-heading">Wednesday&#8217;s Performance In Major U.S. Indices, ETFs</h1>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>Chg %</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>41,053.09</td>
<td>-0.5%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,592.49</td>
<td>-0.6%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,191.39</td>
<td>-0.6%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>19,362.15</td>
<td>-1.1%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:10 p.m. ET</figcaption></figure>
According to <a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent082824&amp;t=be2bearmibe3na1">Benzinga Pro</a> data:
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.7% down to $557.94.</li>
<li>The SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) eased down 0.4% to $411.11.</li>
<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) declined 1.2% to $470.98.</li>
<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) fell 0.7% to $217.34.</li>
<li>The Financials Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLF#NYSE">XLF</a>) outperformed, up by 0.2%. The Technology Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLK#NYSE">XLK</a>) lagged, down by 1.5%.</li>
</ul>
<h1 class="wp-block-heading">Wednesday&#8217;s Stock Movers</h1>
<ul>
<li>Super Micro Computer Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NYSE">SMCI</a>) plunged 26% after announcing it won&#8217;t meet the deadline to file its annual Form 10-K for the fiscal year ended June 30. This comes just a day after short-seller <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/08/40606308/super-micro-computer-short-report-shows-limited-evidence-of-accounting-wrongdoing-a">Hindenburg Research released</a> a report accusing the company of accounting manipulation.</li>
<li>Other crypto-related stocks weakened, with CleanSpark Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLSK#NASDAQ">CLSK</a>), Coinbase Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>), Marathon Digital Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) down 5.3%, 4.7% and 4.6% respectively. </li>
<li>Chewy Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CHWY#NYSE">CHWY</a>) rallied 14% in reaction to its upbeat quarterly earnings.</li>
<li>Other stocks reacting to company earnings were Abercrombie &amp; Fitch Co (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ANF#NYSE">ANF</a>) down 17%, Ambarella Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AMBA#NASDAQ">AMBA</a>) up 9%, Bath &amp; Body Works, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBWI#NYSE">BBWI</a>) down 6%, Box Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BOX#NYSE">BOX</a>) up 7.5%, Donaldson Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) down 4.3%, Foot Locker Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FL#NYSE">FL</a>) down 12%, Nordstrom Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JWN#NYSE">JWN</a>) up 4%, PVH Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PVH#NYSE">PVH</a>) up 6.6%, SentinelOne Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/S#NYSE">S</a>) down 2% and J.M. Smucker Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SJM#NYSE">SJM</a>) down 5.8%.</li>
<li>Companies reporting after the close included Nvidia Corp., Salesforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>), CrowdStrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>), HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>), Veeva Systems Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VEEV#NYSE">VEEV</a>), NetApp Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTAP#NASDAQ">NTAP</a>), Pure Storage Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PSTG#NYSE">PSTG</a>), Cooper Companies Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COO#NASDAQ">COO</a>), Okta Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/OKTA#NASDAQ">OKTA</a>), Nutanix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NTNX#NASDAQ">NTNX</a>), Affirm Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/AFRM#NASDAQ">AFRM</a>), Five Below Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FIVE#NASDAQ">FIVE</a>) and Victoria Secret &amp; Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/VSCO#NYSE">VSCO</a>).</li>
</ul>
Read Now:
<ul>
<li><a href="https://www.benzinga.com/markets/equities/24/08/40604424/10-etfs-poised-for-wild-swings-following-nvidia-earnings">10 ETFs Poised For Wild Swings Following Nvidia Earnings</a> Don&#8217;t miss the opportunity to dominate in a volatile market at the <a href="https://www.benzinga.com/events/small-cap/global-small-cap-conference-2024/" target="_blank" rel="noreferrer noopener">Benzinga SmallCAP Conference</a> on Oct. 9-10 at the Chicago Marriott Downtown Magnificent Mile. Get exclusive access to CEO presentations, 1:1 meetings with investors and valuable insights from top financial experts. Whether you&#8217;re a trader, entrepreneur or investor, this event offers unparalleled opportunities to grow your portfolio and network with industry leaders. Secure your spot and get your tickets today! Photo: Shutterstock</li>
</ul>

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BBWI

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CLSK

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SOXX

VEEV

VSCO

US Stocks, Chipmakers Fall Ahead Of Nvidia Earnings, Berkshire Hits $1 Trillion, Super Micro Computer Sinks: What's Driving Markets Wednesday?

Guidance

Donaldson Expects FY25 Adj. EPS Of $3.56-$3.72 Vs. Est. $3.68; Sales Projected To Increase 2%-6% YoY

Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) reported quarterly earnings of $0.94 per share which beat the analyst consensus estimate of $0.89 by 5.62 percent. The company reported quarterly sales of $935.400 million which missed the analyst consensus estimate of $942.845 million by 0.79 percent. This is a 6.36 percent increase over sales of $879.500 million the same period last year.

Earnings Beats

Earnings Misses

Donaldson Q4 2024 Adj. EPS $0.94 Beats $0.89 Estimate, Sales $935.400M Miss $942.845M Estimate

Donaldson's (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) short percent of float has fallen 5.58% since its last report. The company recently reported that it has 1.75 million shares sold short, which is 1.86% of all regular shares that are available for trading. Based on its trading volume, it would take traders 4.89 days to cover their short positions on average.
<h3>Why Short Interest Matters</h3>
Short interest is the number of shares that have been sold short but have not yet been covered or closed out. <a href="https://www.benzinga.com/money/how-to-short-a-stock/">Short selling</a> is when a trader sells shares of a company they do not own, with the hope that the price will fall. Traders make money from short selling if the price of the stock falls and they lose if it rises.
Short interest is important to track because it can act as an indicator of market sentiment towards a particular stock. An increase in short interest can signal that investors have become more bearish, while a decrease in short interest can signal they have become more bullish.
See Also: <a href="https://www.benzinga.com/short-interest">List of the most shorted stocks</a>
<h3>Donaldson Short Interest Graph (3 Months)</h3>
<img src="https://www.benzinga.com/files/images/story/2024/1721925020_0.png" alt="short_fig" />
As you can see from the chart above the percentage of shares that are sold short for Donaldson has declined since its last report. This does not mean that the stock is going to rise in the near-term but traders should be aware that less shares are being shorted.
<h3>Comparing Donaldson's Short Interest Against Its Peers</h3>
Peer comparison is a popular technique amongst analysts and investors for gauging how well a company is performing. A company's peer is another company that has similar characteristics to it, such as industry, size, age, and financial structure. You can find a company's peer group by reading its 10-K, proxy filing, or by doing your own similarity analysis.
According to <a href="https://pro.benzinga.com/">Benzinga Pro</a>, Donaldson's peer group average for short interest as a percentage of float is 3.28%, which means the company has less short interest than most of its peers.
Did you know that increasing short interest can actually be bullish for a stock? <a href="https://www.benzinga.com/money/how-to-make-money-on-a-short-squeeze/">This post by Benzinga Money explains how you can profit from it.</a>
This article was generated by Benzinga's automated content engine and was reviewed by an editor.

Short Sellers

Short Ideas

Looking Into Donaldson's Recent Short Interest

Major stock indices in the United States ended lower on Jul 17, 2024, pulled down by microchip stocks&#39; decline. Notably, microchip stocks sank following news reports that the Biden administration might impose severe trade restrictions against China in a bid to contain the availability of semiconductor technology to the latter. &nbsp;
Against this backdrop, stock market players might not feel confident in making investments as trade tensions between these two economic giants sometimes result in global market imbalance. However, a prudent investor knows that one can buy stocks that are safe bets in periods of market decline. To this end, we recommend stocks like Vital Farms (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/vitl#NASDAQ">VITL</a>), Donaldson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dci#NYSE">DCI</a>), Atmos Energy (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/ato#NYSE">ATO</a>), First Solar (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fslr#NASDAQ">FSLR</a>) and Skechers (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/skx#NYSE">SKX</a>) that have low leverage. Choosing them can shield investors from incurring huge losses in times of crisis.
Now, before selecting low-leverage stocks, let&#39;s explore what leverage is and how choosing a low-leverage stock helps investors.
In finance, leverage is a term used to denote the practice of borrowing capital by companies to run their operations smoothly and expand the same. Such borrowings are done through debt financing. But there remains an option for equity finance. This is probably due to the cheap and easy availability of debt over equity financing.
However, debt financing has its share of drawbacks. Particularly, it is desirable only as long as it successfully generates a higher rate of return compared to the interest rate. So, to avoid considerable losses in your portfolio, one should always avoid companies that resort to excessive debt financing.
The crux of safe investment lies in choosing a company that is not burdened with debt, as a debt-free stock is almost impossible to find.
The equity market can be volatile at times, and, as an investor, if you don&#39;t want to lose big time, we suggest you invest in stocks that bear low leverage and are, hence, less risky.
To identify such stocks, historically, several leverage ratios have been developed to measure the amount of debt a company bears. The debt-to-equity ratio is one of the most common ratios.
<h3>Analyzing Debt/Equity</h3>
Debt-to-Equity Ratio = Total Liabilities/Shareholders&#39; Equity
This metric is a liquidity ratio that indicates the amount of financial risk a company bears. A lower debt-to-equity ratio reflects improved solvency for a company.
With the start of the second-quarter earnings season, investors must be eyeing stocks that have exhibited solid earnings growth in the recent past. But if a stock bears a high debt-to-equity ratio in times of economic downturn, its so-called booming earnings picture might turn into a nightmare.
<h3>The Winning Strategy</h3>
Considering the factors above, it is prudent to choose stocks with a low debt-to-equity ratio to ensure steady returns.
Yet, an investment strategy based solely on the debt-to-equity ratio might not fetch the desired outcome. To choose stocks that have the potential to give you steady returns, we have expanded our screening criteria to include some other factors.
<h3>Here are the other parameters:</h3>
Debt/Equity less than X-Industry Median: Stocks that are less leveraged than their industry peers.
Current Price greater than or equal to 10: The stocks must be trading at a minimum of $10 or above.
Average 20-day Volume greater than or equal to 50000: A substantial trading volume ensures that the stock is easily tradable.
Percentage Change in EPS F(0)/F(-1) greater than X-Industry Median: Earnings growth adds to optimism, leading to a stock&#39;s price appreciation.
VGM Score of A or B: Our research shows that stocks with a VGM Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Estimated One-Year EPS Growth F(1)/F(0) greater than 5: This shows earnings growth expectation.
Zacks Rank #1 or 2: Irrespective of market conditions, stocks with a Zacks Rank #1 or 2 have a proven history of success.
Excluding stocks that have a negative or a zero debt-to-equity ratio, here we present our five picks out of the 23 stocks that made it through the screen.
Vital Farms: The company offers a range of produced pasture-raised foods, which include shell eggs, butter, hard-boiled eggs, ghee and liquid whole eggs. On Jun 26, 2024, Vital Farms revealed plans to expand its resilient supply chain with a second world-class egg washing and packing facility located in Seymour, IN. The new 72-acre facility will enable Vital Farms to continue growing its pasture-raised egg business and is expected to help generate more than $350 million in additional revenues.
VITL delivered an average four-quarter earnings surprise of 102.10%. It currently sports a Zacks Rank #1. The Zacks Consensus Estimate for VITL&#39;s 2024 sales suggests a solid 22.6% improvement from the 2023 reported figure.
Donaldson: It is engaged in the manufacturing and sale of filtration systems and replacement parts across the world. On Jul 3, 2024, Donaldson announced that through Its Univercells Technologies business, the company has expanded its relationship with the Gene Therapy Program at the University of Pennsylvania to evaluate certain bioreactors for scalable gene therapy production. Univercells Technologies developed the scale-X bioreactor, which was originally designed to lower the cost of viral vaccine production for critical public health vaccines. It is now being applied to enable viral vector accessibility for gene therapies.
DCI currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 10.5%. The Zacks Consensus Estimate for DCI&#39;s 2024 sales suggests a 4.6% improvement from the 2023 reported quarter.
Atmos Energy: It is engaged in regulated natural gas distribution and storage business. On May 8, 2024, Atmos Energy announced second-quarter fiscal 2024 results. Its earnings per share came in at $4.93, higher than the year-ago quarter&#39;s level of $4.40.
The company boasts a long-term earnings growth rate of 7%. The Zacks Consensus Estimate for ATO&#39;s fiscal 2024 sales implies an increase of 9.4% from fiscal 2023 sales. ATO currently carries a Zacks Rank #2.
First Solar: It is a leading global provider of comprehensive photovoltaic (PV) solar energy solutions and specializes in designing, manufacturing, and selling solar electric power modules using a proprietary thin-film semiconductor technology. On Jun 4, 2024, First Solar revealed that its Series 6 Plus and Series 7 TR1 products are the world&#39;s first PV solar modules to achieve the EPEAT Climate+ designation. This makes FSLR&#39;s modules the first to meet the global standard of ultra-low carbon threshold of less-than-equal-to 400 kg CO2e/kWp.
FSLR currently carries a Zacks Rank #2. The Zacks Consensus Estimate for 2024 sales implies an improvement of 36.5% from the 2023 reported sales figure. FSLR has a long-term earnings growth rate of 56.2%.
Skechers: It designs, develops, markets, and distributes footwear for men, women, and children in the United States and overseas under the SKECHERS name, as well as under several unique brand names. On Jul 4, 2024, Skechers announced that Mohammed Kudus, the Ghana national football team player, has been signed on as a Skechers athlete and is set to appear in multiplatform marketing campaigns supporting Skechers Football.
SKX currently holds a Zacks Rank #2. The company boasts a long-term earnings growth rate of 17.2%. The Zacks Consensus Estimate for SKX&#39;s 2024 sales suggests a 10.6% improvement from the 2023 reported figure.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material. An affiliated investment advisory firm may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
<a href="https://www.zacks.com/stock/news/2304156/5-low-leverage-stocks-to-buy-amid-u-s-china-trade-tension?cid=CS-BENZ-FT-analyst_blog|rw-2304156">To read this article on Zacks.com click here.</a>

Macro Economic Events

Economics

FSLR

VITL

5 Low-Leverage Stocks to Buy Amid U.S.-China Trade Tension

Program Led By James M. Wilson, MD, PhD, At Perelman School Of Medicine

Donaldson's Univercells Technologies Expands Evaluation Agreement With University Of Pennsylvania's Gene Therapy Program; Aims To Determine Scalability Of Gene Therapy Manufacturing Using Univercells' Bioreactors

A large exercise of company stock options by Scott Robinson, Chief Financial Officer at Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) was disclosed in a new SEC filing on July 3, as part of an insider exercise.
What Happened: Disclosed in a Form 4 filing on Wednesday with the <a href="https://www.sec.gov/Archives/edgar/data/0000029644/000002964424000078//Archives/edgar/data/29644/000002964424000078/0000029644-24-000078-index.htm">U.S. Securities and Exchange Commission</a>, Robinson, Chief Financial Officer at Donaldson, executed a strategic derivative sale. This involved exercising stock options for 37,600 shares of DCI, resulting in a transaction value of $956,919.
As of Wednesday morning, Donaldson shares are down by 0.0%, with a current price of $70.88. This implies that Robinson's 37,600 shares have a value of $956,919.
<h3>Unveiling the Story Behind Donaldson</h3>
Donaldson is a leading manufacturer of filtration systems and replacement parts (including air filtration systems, liquid filtration systems, and dust, fume, and mist collectors). The company serves a diverse range of end markets, including construction, mining, agriculture, truck, and industrial. Its business is organized into three segments: mobile solutions, industrial solutions, and life sciences. Donaldson generated approximately $3.4 billion in revenue and $480 million in operating income in its fiscal 2023.
<h3>Donaldson: A Financial Overview</h3>
Positive Revenue Trend: Examining Donaldson's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 5.96% as of 30 April, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.
Key Insights into Profitability Metrics:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 35.58%, suggesting potential challenges in cost control and profitability compared to its peers.
</li>
<li>
Earnings per Share (EPS): Donaldson's EPS reflects a decline, falling below the industry average with a current EPS of 0.94.
</li>
</ul>
Debt Management: Donaldson's debt-to-equity ratio is below the industry average. With a ratio of 0.37, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Market Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: The current P/E ratio of 22.01 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
</li>
<li>
Price to Sales (P/S) Ratio: The Price to Sales ratio is 2.46, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Donaldson's EV/EBITDA ratio, lower than industry averages at 14.01, indicates attractively priced shares.
</li>
</ul>
Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.
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<h3>The Relevance of Insider Transactions</h3>
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>Exploring Key Transaction Codes</h3>
<a href="https://www.benzinga.com/money/investing-tools">Investors</a> prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0000029644">Check Out The Full List Of Donaldson's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Decision: Scott Robinson Exercises Options At Donaldson For $956K

Raymond James analyst Tim Thein initiates coverage on Donaldson (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>) with a Market Perform rating.

Initiation

Raymond James Initiates Coverage On Donaldson with Market Perform Rating

Growth concerns dragged stocks lower on Tuesday, with all major indices trading in the red as investors took a cautious <a href="https://www.benzinga.com/economics/macro-economic-events/24/06/39165539/bond-market-rallies-as-recession-worries-mount-rate-cut-bets-gain-steam-ahead-of-">tone on riskier assets. </a>
The S&amp;P 500 faced selling pressure when attempting to break above 5,300 levels. It traded down 0.4% by midday in New York.
Major large-cap indices showed only marginal dips and small caps felt the brunt of the selloff while the iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) was down 1.4%.
<h3 class="wp-block-heading">On The Macro Front</h3>
Tuesday witnessed further indication of a potential slowing economic momentum, as already surfaced last week and on Monday. 
The number of job openings in April fell sharply by 296,000, reaching the lowest level since February 2021 and missing expectations.
In response, traders increased their bets on a Federal Reserve rate cut in September. The CME Group Fed Watch tool now shows a 65% chance of a cut, up significantly from 46% last week. 
The prospect of lower interest rates boosted bond prices, with the iShares 20+ Year Treasury Bond ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLT#NASDAQ">TLT</a>) rising 1%, on track for its fourth consecutive gain. 
This rally benefited interest-rate sensitive stocks like real estate, which outperformed in the S&amp;P 500.
Commodities took a tumble, with cyclical plays like copper, silver, and crude oil down 3%, 4% and 1.5%, respectively. 
Oil prices are now down for five straight days, with the WTI trading at about $72 a barrel and heading to the lowest close in four months. 
Bucking the overall bearish sentiment, Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) surged 3%, breaking above $70,000.
<h3 class="wp-block-heading">Tuesday&#8217;s Performance In Major US Indices, ETFs</h3>
<figure class="wp-block-table is-style-stripes"> 
<table>
<tbody>
<tr>
<td>Major Indices</td>
<td>Price</td>
<td>1-day (% Chg)</td>
</tr>
<tr>
<td>Dow Jones</td>
<td>38,491.46</td>
<td>-0.2%</td>
</tr>
<tr>
<td>Nasdaq 100</td>
<td>18,541.04</td>
<td>-0.3%</td>
</tr>
<tr>
<td>S&amp;P 500</td>
<td>5,261.48</td>
<td>-0.4%</td>
</tr>
<tr>
<td>Russell 2000</td>
<td>2,031.81</td>
<td>-1.4%</td>
</tr>
</tbody>
</table>
<figcaption class="wp-element-caption">Updated at 12:15 p.m. ET</figcaption></figure>
According to <a href="https://pro.benzinga.com/dashboard">Benzinga Pro</a> data: 
<ul>
<li>The&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>)&nbsp;was 0.5% lower to $525.</li>
<li>The&nbsp;SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>)&nbsp;fell 0.2% to $385.46.</li>
<li>The tech-heavy&nbsp;Invesco QQQ Trust&nbsp;(ARCA: <a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a><a href="https://www.benzinga.com/quote/qqq" target="_blank" rel="noreferrer noopener"></a>QQQ) fell 0.4% to $451.41</li>
<li>Sector-wise, the&nbsp;Real Estate Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLRE#NYSE">XLRE</a>)&nbsp;outperformed, up by 0.9%, while the&nbsp;Materials Select Sector SPDR Fund&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLB#NYSE">XLB</a>) lagged, down 1.6%.</li>
</ul>
<h3 class="wp-block-heading">Tuesday&#8217;s Stock Movers</h3>
<ul>
<li>Saia Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SAIA#NASDAQ">SAIA</a>) surged over 7% on strong less-than-truckload (LTL) shipment growth. The company reported an 18% increase in LTL shipments per workday in April year-over-year, and an even stronger 18.6% increase in May year-over-year.</li>
<li>Carnival Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CCL#NYSE">CCL</a>) jumped over 4% on Tuesday after the company announced a strategic move to absorb the P&amp;O Cruises Australia brand into Carnival Cruise Line starting in 2025. Industry-peer Norwegian Cruise Line Holdings Ltd. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/NCLH#NYSE">NCLH</a>) rose 3%. </li>
<li>Crypto-related stocks including Coinbase Global Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/COIN#NASDAQ">COIN</a>) and Marathon Digital Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) rose by 5.6% and 6.5% respectively, amid improving Bitcoin price momentum. </li>
<li>Energy-linked corporates faced losses amid weaker oil prices. Exxon Mobil Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XOM#NYSE">XOM</a>) fell 2.3%, while Chevron Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) eased 1.5%. </li>
<li>Bath &amp; Body Works Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBWI#NYSE">BBWI</a>) tumbled 13% in reactions to the company&#8217;s quarterly results. </li>
<li>Other stocks reacting to earnings were Ferguson plc (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/FERG#NYSE">FERG</a>) down 2%, Core &amp; Main Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CNM#NYSE">CNM</a>) down 16% and Donaldson Company Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DCI#NYSE">DCI</a>), up 1%. </li>
<li>Companies scheduled to report after the close include CrowdStrike Holdings Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CRWD#NASDAQ">CRWD</a>), Hewlett Packard Enterprise Company (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPE#NYSE">HPE</a>) and Guidewire Software Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GWRE#NYSE">GWRE</a>). </li>
</ul>
See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/24/06/39162932/indian-stocks-tumble-the-most-since-march-2020-with-modis-party-set-to-lose-majorit">Indian Stocks Tumble The Most Since March 2020 With Modi&#8217;s Party Set To Lose Majority</a>
Image: Midjourney

Macro Notification

Market Summary

REIT

Bonds

Treasuries

Econ #s

Federal Reserve

Tech

Real Estate

FERG

GWRE

NCLH

SAIA

iShares Trust Barclays 20+ Year Treasury Bond Fund

XLRE

Stocks Dip Even With Traders Hopeful For September Rate Cut; Bonds Extend Rally, Oil Plummets: What's Driving Markets Tuesday?

Donaldson (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/dci#NYSE">DCI</a>) came out with quarterly earnings of $0.92 per share, beating the Zacks Consensus Estimate of $0.84 per share. This compares to earnings of $0.76 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of 9.52%. A quarter ago, it was expected that this maker of filtration systems would post earnings of $0.73 per share when it actually produced earnings of $0.81, delivering a surprise of 10.96%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Donaldson, which belongs to the Zacks Pollution Control industry, posted revenues of $927.9 million for the quarter ended April 2024, surpassing the Zacks Consensus Estimate by 0.90%. This compares to year-ago revenues of $875.7 million. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock&#39;s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management&#39;s commentary on the earnings call.
Donaldson shares have added about 10.1% since the beginning of the year versus the S&amp;P 500&#39;s gain of 10.8%.
What&#39;s Next for Donaldson?
While Donaldson has underperformed the market so far this year, the question that comes to investors&#39; minds is: what&#39;s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company&#39;s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Donaldson: favorable. While the magnitude and direction of estimate revisions could change following the company&#39;s just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future.
It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.88 on $933.4 million in revenues for the coming quarter and $3.28 on $3.58 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Pollution Control is currently in the bottom 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the broader Zacks Industrial Products sector, Enerpac (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/epac#NYSE">EPAC</a>), has yet to report results for the quarter ended May 2024.
This industrial products company is expected to post quarterly earnings of $0.47 per share in its upcoming report, which represents a year-over-year change of +20.5%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Enerpac&#39;s revenues are expected to be $153.2 million, down 2% from the year-ago quarter.
<a href="https://www.zacks.com/stock/news/2283091/donaldson-dci-q3-earnings-and-revenues-beat-estimates?cid=CS-BENZ-FT-tale_of_the_tape|yseop_template_4-2283091">To read this article on Zacks.com click here.</a>

EPAC

Donaldson Q3 Earnings and Revenues Beat Estimates

35 "green" energy stocks for a new era of profitability - Citi

Morgan Stanley analyst Angel Castillo maintained a Sell rating on Donaldson Company (DCI – Research Report) today and set a price target of $67.00....

Donaldson Company (DCI) Receives a Sell from Morgan Stanley

RSPN: Industrials Dashboard For October

Donaldson Company ( ($DCI) ) has shared an update. Donaldson Company, Inc. has announced Brad Pogalz as their new Chief Financial Officer, effectiv...

Donaldson Company Names New CFO as Financial Strategy Shifts

Donaldson's Bullish Dividend Metrics Point To More Share Price Gains

Donaldson Company Shares Aren't Cheap Enough For An Upgrade

Powell Industries (POWL) reported solid financial results in the third quarter of 2024, easily beating analysts' expectations. While the industrial machinery company's long-term prospects are robust with a wide product portfolio, increasing demand, and market expansion, it faces short-term uncertainties amid upcoming earnings report and rigid competition. So, should you add this stock to your watchlist? Read more to find out... Powell Industries, Inc. (<a href="https://stocknews.com/stock/POWL/">POWL</a>) is a leading provider of custom-engineered equipment and systems. The company engaged in the designing, development, manufacturing, sale, and services of these systems. In the last reported quarter, the company's revenue of $288.17 million surpassed the analysts' expectations of $222.18 million. Also, its EPS of $3.79 was above the estimate of $2.16.
The revenue increase from the prior period was primarily driven by strong growth in the Oil and Gas sector, which increased 56% year-over-year to $114.3 million. Also, revenues from the Electric Utility sector amounted to $57 million, indicating an increase of 30%.
During the third quarter, POWL's new orders totaled $356 million, which were spread broadly across its key end markets, and its backlog was $1.30 billion as of June 30, 2024. The orders represent the estimated value of contracts added to the company's existing backlog and its continuous strides toward further expansion.
Amid the growth in the manufacturing industry and overall economic growth, the global industrial machinery market has grown strongly in recent years. The market is poised to grow to $777.35 billion by 2028, at a <a href="https://www.researchandmarkets.com/reports/5939714/industrial-machinery-global-market-report#:~:text=The%20industrial%20machinery%20market%20size,(CAGR)%20of%207.8%25.">CAGR of 7.2%</a>, driven by technological advances, market expansion, and adoption of robotics and automation.
Powell stands to capitalize on the industry's solid standing with its wide product portfolio. The company plays a crucial role in the industrial sector, especially with its electrical equipment products like electrical houses and medium-voltage circuit breakers.
Currently, a certain degree of uncertainty is lingering around the future prospects of POWL as it prepares to announce its financial results for the fiscal fourth quarter and year ended September 30, 2024, on November 19, 2024. Analysts have mostly projected optimistic expectations on its revenue and EPS for the quarter, with some alternate opinions.
Shares of POWL have gained 114.4% over the past six months and 317.3% over the past year to close its last trading session at $343.86.
Let's look at factors that could influence POWL's performance in the upcoming months.
Robust Financials
For the third quarter that ended June 30, 2024, POWL's revenues increased 49.8% year-over-year to $288.17 million. Its <a href="https://www.investopedia.com/terms/g/grossprofit.asp">gross profit</a> grew 91.6% from the year-ago value to $81.74 million. The company's operating income of $57.29 million indicates growth of 165.8% year-over-year.
Furthermore, the company reported net income and EPS of $46.22 million and $3.79, reflecting increases of 150.5% and 149.3% from the prior year's quarter, respectively. Also, POWL's total assets stood at $868.98 million as of June 30, 2024, compared to $752.24 million as of September 30, 2023.
Favorable Analyst Estimates
Analysts expect POWL's revenue for the fourth quarter (ended September 2024) to come in at $286.49 million, indicating an increase of 37.3% year-over-year. The consensus EPS estimate of $3.55 for the same period reflects an 82.1% year-over-year improvement. Further, the company has maintained an impressive earning history, having topped the consensus revenue and EPS estimates in each trailing four quarters.
For the fiscal year 2024, the company's revenue and EPS are anticipated to grow 50.2% and 185.9% year-over-year to $1.05 billion and $11.78, respectively. In addition, Street expects its revenue and EPS for the fiscal year 2025 to grow 6% and 4.9% from the prior year to $1.11 billion and $12.36, respectively.
Robust Profitability
POWL's trailing-12-month EBIT margin and net income margin of 16.12% and 13.77% are 56.3% and 114.2% higher than the 10.31% and 6.43% industry average, respectively. Its trailing-12-month Levered FCF margin of 16.81% is significantly higher than the industry average of 6.66%.
Elevated Valuation
In terms of forward non-GAAP P/E, POWL is currently trading at 29.19x, 36.4% higher than the industry average of 21.40x. The stock's forward EV/Sales and Price/Sales of 3.57x and 3.92x are considerably higher than the industry average of 2.04x and 1.64x, respectively.
Additionally, the stock's forward EV/EBITDA and Price/Book of 20.42x and 8.75x are currently 63.2% and 167% higher than the industry averages of 12.51x and 3.28x, respectively.
POWR Ratings Reflect Uncertainty
POWL's mixed fundamentals are reflected in its <a href="https://stocknews.com/powr-ratings/">POWR Ratings</a>. The stock has an overall rating of C, translating to a Neutral in our proprietary system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
Our proprietary rating system also evaluates each stock based on eight distinct categories. POWL has an A grade for Quality, consistent with its higher-than-industry profitability.
However, the company's elevated valuation has earned it a C grade for Value.
POWL is ranked #42 among the 79 stocks in the A-rated <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry.
Beyond what I have stated above, we have also given POWL grades for Momentum, Sentiment, Stability, and Growth. Get access to all the POWL ratings <a href="https://stocknews.com/stock/POWL/">here</a>.
Bottom Line
POWL reported solid financial results in the last reported quarter. Further, the company's long-term growth opportunities are solid, driven by the increasing number of new orders, innovative products, and widening sector scope. However, it continues to grapple with elevated valuation, short-term uncertainties, and rigid competition from its peers like Fluence Energy, Inc. (<a href="https://stocknews.com/stock/FLNC/">FLNC</a>) and Nextracker, Inc. (<a href="https://stocknews.com/stock/NXT/">NXT</a>).
Given POWL's elevated valuation and near-term prospects, waiting for a better entry point in this stock seems prudent.
Stocks to Consider Instead of Powell Industries, Inc. (POWL)
Given its near-term uncertain prospects, the odds of POWL outperforming in the weeks and months ahead are compromised. However, there are many industry peers with much more impressive POWR Ratings. So, consider these A (Strong Buy) or B (Buy) stocks from the <a href="https://stocknews.com/category/industrial-machinery/">Industrial - Machinery</a> industry instead:
Smiths Group PLC (<a href="https://stocknews.com/stock/SMGZY/">SMGZY</a>)
Donaldson Company, Inc. (<a href="https://stocknews.com/stock/DCI/">DCI</a>)
Techtronic Industries Co. Ltd. ADR (<a href="https://stocknews.com/stock/TTNDY/">TTNDY</a>)
For exploring more A and B-rated industrial stocks, <a href="https://stocknews.com/category/industrial-machinery/">click here</a>.
What To Do Next?
Get your hands on this special report with 3 low priced companies with tremendous upside potential even in today's volatile markets:
<a href="https://report.stocknews.com/free-report/3stocks/?formplacement=artbotad_3s">3 Stocks to DOUBLE This Year &gt;</a>

<hr />
POWL shares were trading at $317.63 per share on Wednesday afternoon, down $26.23 (-7.63%). Year-to-date, POWL has gained 261.12%, versus a 26.92% rise in the benchmark S&amp;P 500 index during the same period.
<hr><div style="clear:both;"></div> <h2>About the Author: Rjkumari Saxena</h2> <img src='https:/wp-content/uploads/2024/04/Rajkumari-Saxena_Image-1.jpeg' style="float:left; padding:5px;width:125px;">Rajkumari started her career as a writer but gradually shifted her focus to financial journalism, leveraging her educational background in Commerce. Fascinated by the interplay of business and economic shifts in equities, she aspires to evolve as an analyst. With a knack for simplifying complex financial concepts, her mission is to empower investors with insights that lead to profitable decisions.<a href="https://stocknews.com/authors/?author=rajkumari-saxena">More...</a>The post <a href=https://stocknews.com/news/powl-smgzy-dci-ttndy-flnc-nxt-should-you-watch-powell-industries-amidst-industrial-sector-growth/>Should You Watch Powell Industries Amidst Industrial Sector Growth?</a> appeared first on <a href=https://stocknews.com/>StockNews.com</a>

Should You Watch Powell Industries Amidst Industrial Sector Growth?

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Donaldson Announces Scott Robinson to Retire and Brad Pogalz to Become Chief Financial Officer

Donaldson Company to Present at the Gabelli Funds 48th Annual Automotive Aftermarket Symposium

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