Daiwa America Upgrades Eaton (NYSE:ETN) to Strong-Buy

Key Points

• Daiwa America has upgraded Eaton (NYSE:ETN) to a "strong-buy" rating, indicating strong confidence in the company's stock.
• Multiple analysts have raised their price targets for Eaton, with Morgan Stanley setting the new target at $425.00 and a consensus rating of "Moderate Buy" across 24 analysts.
• Eaton reported earnings of $2.95 per share for the quarter, exceeding expectations with a revenue of $7.03 billion, reflecting a 10.7% increase compared to the same quarter the previous year.

Daiwa America upgraded shares of Eaton (NYSE:ETN - Free Report) to a strong-buy rating in a research report report published on Thursday,Zacks.com reports.

Several other research firms also recently issued reports on ETN. Raymond James Financial boosted their price target on Eaton from $380.00 to $415.00 and gave the company an "outperform" rating in a research note on Thursday, August 7th. Evercore ISI boosted their price target on Eaton from $326.00 to $349.00 and gave the company an "in-line" rating in a research note on Monday, May 19th. Wall Street Zen upgraded Eaton from a "hold" rating to a "buy" rating in a research note on Saturday, August 30th. Morgan Stanley boosted their price target on Eaton from $375.00 to $425.00 and gave the company an "overweight" rating in a research note on Wednesday, August 6th. Finally, The Goldman Sachs Group boosted their price target on Eaton from $345.00 to $382.00 and gave the company a "buy" rating in a research note on Tuesday, July 8th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have given a Hold rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $390.68.

Eaton Stock Performance

Shares of ETN stock traded up $10.09 during trading on Thursday, reaching $375.99. 3,030,475 shares of the company's stock were exchanged, compared to its average volume of 2,943,101. The company has a quick ratio of 0.76, a current ratio of 1.24 and a debt-to-equity ratio of 0.47. The stock has a market capitalization of $146.37 billion, a PE ratio of 37.83, a PEG ratio of 2.61 and a beta of 1.17. Eaton has a twelve month low of $231.85 and a twelve month high of $399.56. The firm's fifty day moving average price is $362.13 and its 200-day moving average price is $324.63.

Eaton (NYSE:ETN - Get Free Report) last posted its earnings results on Tuesday, August 5th. The industrial products company reported $2.95 earnings per share for the quarter, topping analysts' consensus estimates of $2.92 by $0.03. The business had revenue of $7.03 billion for the quarter, compared to analyst estimates of $6.93 billion. Eaton had a return on equity of 23.91% and a net margin of 15.11%.The firm's revenue was up 10.7% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.73 EPS. Eaton has set its Q3 2025 guidance at 3.010-3.070 EPS. FY 2025 guidance at 11.970-12.170 EPS. As a group, sell-side analysts anticipate that Eaton will post 12.02 EPS for the current year.

Eaton Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Thursday, August 7th were given a dividend of $1.04 per share. This represents a $4.16 annualized dividend and a dividend yield of 1.1%. The ex-dividend date was Thursday, August 7th. Eaton's dividend payout ratio is currently 41.85%.

Insider Buying and Selling at Eaton

In related news, insider Olivier Leonetti sold 16,018 shares of the company's stock in a transaction on Thursday, August 7th. The stock was sold at an average price of $358.39, for a total transaction of $5,740,691.02. Following the completion of the sale, the insider directly owned 630 shares in the company, valued at $225,785.70. This represents a 96.22% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.30% of the stock is currently owned by corporate insiders.

Institutional Trading of Eaton

Institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC lifted its position in shares of Eaton by 0.7% during the 1st quarter. GAMMA Investing LLC now owns 13,219 shares of the industrial products company's stock worth $3,593,000 after buying an additional 96 shares during the last quarter. Brighton Jones LLC increased its holdings in Eaton by 4.9% in the 1st quarter. Brighton Jones LLC now owns 3,505 shares of the industrial products company's stock worth $953,000 after purchasing an additional 164 shares in the last quarter. Kennebec Savings Bank increased its holdings in Eaton by 5.4% in the 1st quarter. Kennebec Savings Bank now owns 2,715 shares of the industrial products company's stock worth $738,000 after purchasing an additional 139 shares in the last quarter. American National Bank & Trust increased its holdings in Eaton by 5.4% in the 1st quarter. American National Bank & Trust now owns 3,145 shares of the industrial products company's stock worth $855,000 after purchasing an additional 162 shares in the last quarter. Finally, Castle Rock Wealth Management LLC increased its holdings in Eaton by 7.0% in the 4th quarter. Castle Rock Wealth Management LLC now owns 8,330 shares of the industrial products company's stock worth $2,575,000 after purchasing an additional 543 shares in the last quarter. 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.