Eaton Corporation, PLC (NYSE:ETN) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• "Moderate Buy" consensus from 21 analysts (14 buy, 5 hold, 2 strong buy) with an average 12‑month target of $395.05, though recent broker actions range from Barclays cutting its target to $340 to Jefferies initiating coverage at $430 and Morgan Stanley at $425.
• Eaton reported Q EPS of $3.23 on $7.06 billion in revenue, has a market cap of $143.0 billion and a P/E of 35.24, with analysts forecasting about $12.02 EPS for the current year and a 52‑week range of $245.30–$408.45.
• The company raised its quarterly dividend to $1.10 (annualized $4.40) for a ~1.2% yield and ~42% payout ratio; insiders sold shares recently while institutional investors own roughly 82.97% of the stock.

Eaton Corporation, PLC (NYSE:ETN - Get Free Report) has been given a consensus recommendation of "Moderate Buy" by the twenty-one analysts that are currently covering the firm, MarketBeat reports. Five research analysts have rated the stock with a hold rating, fourteen have given a buy rating and two have given a strong buy rating to the company. The average 1-year target price among analysts that have issued a report on the stock in the last year is $395.05.

A number of research firms recently issued reports on ETN. Barclays lowered their price target on Eaton from $354.00 to $340.00 and set an "equal weight" rating on the stock in a report on Wednesday, April 1st. HSBC raised Eaton from a "hold" rating to a "buy" rating and set a $400.00 price objective on the stock in a report on Friday, January 16th. Citigroup lowered their price objective on Eaton from $442.00 to $435.00 and set a "buy" rating on the stock in a report on Monday, January 12th. Jefferies Financial Group initiated coverage on Eaton in a report on Monday, March 16th. They issued a "buy" rating and a $430.00 price objective on the stock. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $425.00 price objective on shares of Eaton in a report on Wednesday, February 4th.

Eaton Stock Performance

NYSE ETN opened at $368.59 on Wednesday. The company has a quick ratio of 0.81, a current ratio of 1.32 and a debt-to-equity ratio of 0.45. Eaton has a 52-week low of $245.30 and a 52-week high of $408.45. The business's 50-day moving average price is $365.69 and its 200 day moving average price is $355.80. The firm has a market cap of $143.01 billion, a P/E ratio of 35.24, a P/E/G ratio of 2.49 and a beta of 1.17.

Eaton (NYSE:ETN - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The industrial products company reported $3.23 earnings per share (EPS) 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 for the quarter. On average, equities research analysts expect that Eaton will post 12.02 earnings per share for the current year.

Eaton Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Tuesday, March 10th were issued a $1.10 dividend. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $4.40 dividend on an annualized basis and a yield of 1.2%. This is a boost from Eaton's previous quarterly dividend of $1.04. Eaton's dividend payout ratio is presently 42.07%.

Insiders Place Their Bets

In other Eaton news, insider Sternadt Paulo Ruiz sold 10,707 shares of Eaton stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $390.26, for a total value of $4,178,513.82. Following the sale, the insider owned 27,729 shares of the company's stock, valued at approximately $10,821,519.54. The trade was a 27.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Eaton

A number of institutional investors have recently added to or reduced their stakes in ETN. Fayez Sarofim & Co boosted its stake in shares of Eaton by 3.4% during the 3rd quarter. Fayez Sarofim & Co now owns 1,256,177 shares of the industrial products company's stock worth $474,444,000 after acquiring an additional 40,792 shares in the last quarter. Williams Jones Wealth Management LLC. boosted its stake in shares of Eaton by 3.3% during the 3rd quarter. Williams Jones Wealth Management LLC. now owns 515,587 shares of the industrial products company's stock worth $192,958,000 after acquiring an additional 16,422 shares in the last quarter. SG Americas Securities LLC boosted its stake in shares of Eaton by 438.9% during the 4th quarter. SG Americas Securities LLC now owns 364,877 shares of the industrial products company's stock worth $116,217,000 after acquiring an additional 297,166 shares in the last quarter. Silvercrest Asset Management Group LLC boosted its stake in shares of 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 worth $99,012,000 after acquiring an additional 58,281 shares in the last quarter. Finally, PFA Pension Forsikringsaktieselskab purchased a new stake in shares of Eaton during the 4th quarter worth approximately $97,989,000. Hedge funds and other institutional investors own 82.97% of the company's stock.

About Eaton

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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