Eaton Corporation, PLC (NYSE:ETN) Receives Average Rating of "Moderate Buy" from Analysts

Key Points

• Eaton has a consensus analyst rating of “Moderate Buy”, with 14 buy ratings, 2 strong buy ratings, and 4 hold ratings across 20 research firms. The average 12-month price target is $423.
• Several brokerages recently raised their price targets on ETN, including JPMorgan, KeyCorp, and Citigroup, reflecting continued optimism around the stock. One firm, Weiss Ratings, slightly downgraded its view.
• The company’s latest earnings beat expectations, with EPS of $2.81 and revenue of $7.45 billion, while management also reiterated strong forward guidance. Eaton additionally paid a quarterly dividend of $1.10 per share, equal to a 1.1% annual yield.

Eaton Corporation, PLC (NYSE:ETN - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty research firms that are presently covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation, fourteen have given a buy recommendation and two have issued a strong buy recommendation on the company. The average twelve-month price objective among brokerages that have updated their coverage on the stock in the last year is $423.00.

Several brokerages have recently weighed in on ETN. JPMorgan Chase & Co. upped their target price on Eaton from $406.00 to $445.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 6th. Evercore set a $453.00 price target on shares of Eaton in a report on Monday, May 11th. KeyCorp increased their price objective on shares of Eaton from $420.00 to $480.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Citigroup lifted their target price on shares of Eaton from $464.00 to $471.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Finally, Weiss Ratings downgraded shares of Eaton from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, May 18th.

Insiders Place Their Bets

In other news, insider Antonio Galvao sold 494 shares of Eaton stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $405.86, for a total value of $200,494.84. Following the sale, the insider directly owned 9,175 shares of the company's stock, valued at $3,723,765.50. The trade was a 5.11% 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, Director Dorothy C. Thompson sold 167 shares of the business's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $385.00, for a total value of $64,295.00. Following the sale, the director owned 1,096 shares of the company's stock, valued at $421,960. The trade was a 13.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 21,028 shares of company stock valued at $8,614,793. 0.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Eaton

Hedge funds and other institutional investors have recently modified their holdings of the business. Rise Advisors LLC grew its stake in Eaton by 3.9% during the 2nd quarter. Rise Advisors LLC now owns 1,359 shares of the industrial products company's stock valued at $579,000 after acquiring an additional 51 shares in the last quarter. Stonekeep Investments LLC acquired a new position in shares of Eaton during the 2nd quarter worth approximately $213,000. Allied Private Wealth LLC purchased a new stake in shares of Eaton in the second quarter valued at approximately $81,000. Valeo Financial Advisors LLC increased its holdings in shares of Eaton by 6.8% in the second quarter. Valeo Financial Advisors LLC now owns 9,793 shares of the industrial products company's stock valued at $4,170,000 after purchasing an additional 623 shares during the last quarter. Finally, Red Spruce Capital LLC boosted its stake in Eaton by 0.9% during the second quarter. Red Spruce Capital LLC now owns 15,567 shares of the industrial products company's stock worth $6,633,000 after buying an additional 132 shares during the last quarter. 82.97% of the stock is owned by hedge funds and other institutional investors.

Key Eaton News

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Multiple articles highlighted Eaton as a beneficiary of the AI data center power buildout, reinforcing the view that demand for electrical equipment, power management, cooling, and backup systems remains strong. 3 Stocks Riding the AI Data Center Power Buildout in July
• Positive Sentiment: Eaton appointed Dan Simpson as President of Global Energy Infrastructure Solutions, a move that supports its strategy in a segment benefiting from accelerating energy and infrastructure spending. Eaton (ETN) Names New Energy Infrastructure Chief as Demand Accelerates
• Positive Sentiment: Near-term earnings expectations remain constructive, with Wall Street forecasting double-digit profit growth for Eaton’s upcoming second-quarter report. Here's What to Expect From Eaton Corporation's Next Earnings Report
• Neutral Sentiment: Investor attention has increased around ETN, suggesting the stock is on traders’ radar, but this is more a visibility signal than a clear fundamental catalyst. Eaton Corporation, PLC (ETN) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Recent coverage also noted that Eaton fell more than the broader market in the latest session, but did not point to a new company-specific negative development. Eaton (ETN) Declines More Than Market: Some Information for Investors

Eaton Stock Down 4.0%

ETN stock opened at $396.37 on Friday. Eaton has a one year low of $311.92 and a one year high of $436.74. 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 firm's fifty day moving average is $404.12 and its 200 day moving average is $379.73. The firm has a market cap of $153.91 billion, a PE ratio of 38.75, a P/E/G ratio of 2.65 and a beta of 1.18.

Eaton (NYSE:ETN - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share for the quarter, topping analysts' consensus estimates of $2.73 by $0.08. The business had revenue of $7.45 billion during the quarter, compared to the consensus estimate of $7.14 billion. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The company's revenue was up 16.8% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $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. On average, research analysts forecast that Eaton will post 13.35 EPS for the current year.

Eaton Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 8th were paid a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a yield of 1.1%. The ex-dividend date was Friday, May 8th. Eaton's payout ratio is 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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