Barclays Issues Pessimistic Forecast for Eaton (NYSE:ETN) Stock Price

Key Points

• Barclays cut its Eaton price target to $340 from $354 and kept an "equal weight" rating, implying roughly a 6.98% downside from the prior close.
• Most other analysts remain more bullish—multiple firms have buy/outperform calls and the consensus is a "Moderate Buy" with an average price target of $395.05.
• Eaton traded around $365.50 mid-day (market cap ~$141.8B) with a PE of ~35; the company reported $3.23 EPS and $7.06B revenue for the most recent quarter.

Eaton (NYSE:ETN - Get Free Report) had its target price decreased by equities researchers at Barclays from $354.00 to $340.00 in a research note issued on Wednesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the industrial products company's stock. Barclays's target price would indicate a potential downside of 6.98% from the company's previous close.

Several other equities research analysts have also issued reports on ETN. Morgan Stanley reissued an "overweight" rating and set a $425.00 price target on shares of Eaton in a research report on Wednesday, February 4th. Jefferies Financial Group started coverage on shares of Eaton in a research note on Monday, March 16th. They set a "buy" rating and a $430.00 target price for the company. BMO Capital Markets initiated coverage on shares of Eaton in a report on Friday, March 27th. They set an "outperform" rating and a $428.00 target price on the stock. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Eaton in a report on Tuesday, January 27th. Finally, Citigroup lowered their price objective on shares of Eaton from $442.00 to $435.00 and set a "buy" rating for the company in a research report on Monday, January 12th. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $395.05.

Eaton Stock Up 2.2%

ETN stock traded up $7.83 during mid-day trading on Wednesday, hitting $365.50. 823,867 shares of the company were exchanged, compared to its average volume of 2,908,763. The company has a market capitalization of $141.81 billion, a PE ratio of 34.95, a price-to-earnings-growth ratio of 2.37 and a beta of 1.17. The firm has a fifty day simple moving average of $362.80 and a 200 day simple moving average of $356.06. The company has a current ratio of 1.32, a quick ratio of 0.81 and a debt-to-equity ratio of 0.45. Eaton has a twelve month low of $231.85 and a twelve month high of $408.45.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings data on Thursday, February 26th. The industrial products company reported $3.23 earnings per share for the quarter. Eaton had a return on equity of 25.00% and a net margin of 14.89%.The firm had revenue of $7.06 billion during the quarter. On average, research analysts forecast that Eaton will post 12.02 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Sternadt Paulo Ruiz sold 10,707 shares of the company's stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $390.26, for a total transaction of $4,178,513.82. Following the completion of the transaction, the insider owned 27,729 shares in the company, valued at approximately $10,821,519.54. This represents a 27.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. PFA Pension Forsikringsaktieselskab acquired a new stake in shares of Eaton in the fourth quarter valued at approximately $97,989,000. SG Americas Securities LLC grew its holdings in Eaton by 438.9% in the 4th quarter. SG Americas Securities LLC now owns 364,877 shares of the industrial products company's stock worth $116,217,000 after buying an additional 297,166 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd increased its position in Eaton by 239,384.8% in the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 158,060 shares of the industrial products company's stock valued at $50,344,000 after acquiring an additional 157,994 shares during the period. Silvercrest Asset Management Group LLC raised its stake in Eaton by 23.1% during the 4th quarter. Silvercrest Asset Management Group LLC now owns 310,859 shares of the industrial products company's stock valued at $99,012,000 after acquiring an additional 58,281 shares in the last quarter. Finally, Entropy Technologies LP acquired a new position in Eaton during the 4th quarter worth $14,786,000. 82.97% of the stock is owned by institutional investors and hedge funds.

Eaton Company Profile

Eaton NYSE: ETN is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company's offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.

Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.

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