A significant insider transaction involving the exercise of company stock options was reported on December 10, by Bradley J Pogalz, Chief Financial Officer at Donaldson (NYSE:DCI), as per the latest SEC filing.
What Happened: Pogalz, Chief Financial Officer at Donaldson, made a strategic move by exercising stock options for 1,000 shares of DCI as detailed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission. The transaction value amounted to $64,150.
As of Thursday morning, Donaldson shares are down by 0.0%, with a current price of $92.15. This implies that Pogalz's 1,000 shares have a value of $64,150.
Get to Know Donaldson Better
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 $3.7 billion in revenue in its fiscal 2025.
Unraveling the Financial Story of Donaldson
Revenue Growth: Donaldson displayed positive results in 3 months. As of 31 October, 2025, the company achieved a solid revenue growth rate of approximately 3.92%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Profitability Metrics: Unlocking Value
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Gross Margin: The company shows a low gross margin of 35.15%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Donaldson's EPS is below the industry average. The company faced challenges with a current EPS of 0.98. This suggests a potential decline in earnings.
Debt Management: Donaldson's debt-to-equity ratio is below the industry average. With a ratio of 0.45, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Valuation Metrics:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 28.71 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: The current P/S ratio of 2.95 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 17.52, Donaldson's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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Why Insider Transactions Are Important
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.
Deciphering Transaction Codes in Insider Filings
Investors 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.
Check Out The Full List Of Donaldson's Insider Trades.
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