Eaton (NYSE:ETN) Raised to “Buy” at StockNews.com

StockNews.com upgraded shares of Eaton (NYSE:ETN) from a hold rating to a buy rating in a research report report published on Sunday.

ETN has been the subject of a number of other research reports. Wells Fargo & Company reissued an “overweight” rating and set a $355.00 price objective on shares of Eaton in a research report on Monday, May 5th. Royal Bank of Canada lifted their price objective on Eaton from $336.00 to $356.00 and gave the company an “outperform” rating in a research report on Monday, May 5th. Jefferies Financial Group reduced their price objective on Eaton from $390.00 to $335.00 and set a “buy” rating for the company in a research report on Wednesday, March 12th. Melius cut Eaton from a “buy” rating to a “hold” rating and set a $373.00 price objective for the company. in a research report on Tuesday, January 28th. Finally, Melius Research restated a “hold” rating and set a $373.00 target price on shares of Eaton in a report on Tuesday, January 28th. Five research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $366.56.

Eaton Stock Performance

Shares of Eaton stock opened at $329.40 on Friday. The stock has a market cap of $128.89 billion, a PE ratio of 34.67, a price-to-earnings-growth ratio of 2.64 and a beta of 1.14. The business has a fifty day simple moving average of $287.40 and a 200-day simple moving average of $319.47. The company has a quick ratio of 0.96, a current ratio of 1.50 and a debt-to-equity ratio of 0.46. Eaton has a 12 month low of $231.85 and a 12 month high of $379.99.

Eaton (NYSE:ETN) last released its quarterly earnings data on Friday, May 2nd. The industrial products company reported $2.72 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.70 by $0.02. The firm had revenue of $6.38 billion during the quarter, compared to analysts’ expectations of $6.26 billion. Eaton had a return on equity of 22.62% and a net margin of 15.25%. The business’s revenue for the quarter was up 7.3% on a year-over-year basis. During the same quarter last year, the firm earned $2.40 earnings per share. On average, sell-side analysts anticipate that Eaton will post 12.02 EPS for the current fiscal year.

Eaton Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 23rd. Stockholders of record on Monday, May 5th will be paid a $1.04 dividend. The ex-dividend date of this dividend is Monday, May 5th. This represents a $4.16 dividend on an annualized basis and a dividend yield of 1.26%. Eaton’s payout ratio is presently 41.98%.

Insider Transactions at Eaton

In related news, insider Craig Arnold sold 51,054 shares of the business’s stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $305.43, for a total transaction of $15,593,423.22. Following the transaction, the insider now directly owns 489,444 shares in the company, valued at $149,490,880.92. The trade was a 9.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Michael Yelton sold 2,120 shares of the business’s stock in a transaction dated Tuesday, May 6th. The shares were sold at an average price of $296.87, for a total value of $629,364.40. Following the transaction, the insider now owns 3,382 shares in the company, valued at $1,004,014.34. This represents a 38.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 156,660 shares of company stock worth $49,622,894. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Eaton

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. IMA Advisory Services Inc. bought a new stake in shares of Eaton in the 1st quarter valued at approximately $25,000. Capital A Wealth Management LLC bought a new stake in shares of Eaton in the 4th quarter valued at approximately $26,000. Flagship Wealth Advisors LLC bought a new stake in shares of Eaton in the 4th quarter valued at approximately $27,000. Creative Financial Designs Inc. ADV grew its stake in shares of Eaton by 102.0% in the 1st quarter. Creative Financial Designs Inc. ADV now owns 101 shares of the industrial products company’s stock valued at $27,000 after purchasing an additional 51 shares during the period. Finally, Noble Wealth Management PBC bought a new stake in shares of Eaton in the 4th quarter valued at approximately $30,000. 82.97% of the stock is currently owned by institutional investors.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.