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

Key Points

• Eaton has an average broker rating of "Moderate Buy" from 21 analysts, with 15 Buy ratings and 2 Strong Buy ratings. The average 12-month price target is $420.95.
• The company recently posted better-than-expected Q1 earnings, reporting EPS of $2.81 versus $2.73 expected and revenue of $7.45 billion versus $7.14 billion estimated. Eaton also raised its guidance for Q2 2026 and FY 2026.
• Several insiders sold shares in recent weeks, including Heath B. Monesmith and Peter Denk, totaling 21,028 shares sold over the last three months. Despite that, institutional investors still hold a large majority of the stock at 82.97%.

Eaton Corporation, PLC (NYSE:ETN - Get Free Report) has earned an average rating of "Moderate Buy" from the twenty-one research firms that are presently covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating, fifteen have given a buy rating and two have assigned a strong buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $420.95.

ETN has been the topic of a number of recent research reports. Royal Bank Of Canada lifted their target price on Eaton from $457.00 to $484.00 and gave the company an "outperform" rating in a research report on Wednesday, May 6th. KeyCorp lifted their price target on Eaton from $420.00 to $480.00 and gave the stock an "overweight" rating in a report on Wednesday, May 6th. Morgan Stanley reiterated an "overweight" rating and set a $500.00 price target on shares of Eaton in a report on Sunday, May 10th. Jefferies Financial Group assumed coverage on Eaton in a report on Monday, March 16th. They set a "buy" rating and a $430.00 price target for the company. Finally, Barclays lifted their price target on Eaton from $340.00 to $392.00 and gave the stock an "equal weight" rating in a report on Wednesday, May 6th.

Insider Buying and Selling at Eaton

In related news, insider Heath B. Monesmith sold 18,367 shares of Eaton stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $409.11, for a total transaction of $7,514,123.37. Following the completion of the transaction, the insider owned 49,822 shares in the company, valued at approximately $20,382,678.42. This trade represents a 26.94% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Peter Denk sold 2,000 shares of Eaton stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $417.94, for a total value of $835,880.00. Following the transaction, the insider owned 7,102 shares of the company's stock, valued at $2,968,209.88. The trade was a 21.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 21,028 shares of company stock valued at $8,614,793 in the last three months. Corporate insiders own 0.10% of the company's stock.

Institutional Investors Weigh In On Eaton

Institutional investors have recently made changes to their positions in the company. Hilton Head Capital Partners LLC bought a new stake in shares of Eaton during the fourth quarter worth approximately $26,000. Sfam LLC bought a new stake in shares of Eaton during the fourth quarter worth approximately $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in shares of Eaton during the fourth quarter worth approximately $28,000. Eagle Bay Advisors LLC bought a new stake in shares of Eaton during the fourth quarter worth approximately $29,000. Finally, Boreal Capital Management LLC bought a new stake in shares of Eaton during the first quarter worth approximately $33,000. Institutional investors own 82.97% of the company's stock.

Eaton Price Performance

NYSE:ETN opened at $406.03 on Thursday. The company has a debt-to-equity ratio of 0.94, a quick ratio of 0.75 and a current ratio of 1.19. The stock's 50-day simple moving average is $390.12 and its 200 day simple moving average is $362.49. The company has a market cap of $157.66 billion, a P/E ratio of 39.69, a P/E/G ratio of 2.59 and a beta of 1.24. Eaton has a 52-week low of $311.90 and a 52-week high of $435.43.

Eaton (NYSE:ETN - Get Free Report) last released its earnings results on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.73 by $0.08. The business had revenue of $7.45 billion for the quarter, compared to the consensus estimate of $7.14 billion. Eaton had a return on equity of 24.72% and a net margin of 13.99%.Eaton's quarterly revenue was up 16.8% on a year-over-year basis. During the same quarter in the previous year, the business earned $2.72 earnings per share. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS. As a group, sell-side analysts forecast that Eaton will post 13.32 EPS for the current fiscal year.

Eaton Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Investors of record on Friday, May 8th will be issued a dividend of $1.10 per share. The ex-dividend date is Friday, May 8th. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. Eaton's dividend payout ratio (DPR) is presently 43.01%.

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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