Eaton Corporation, PLC (NYSE:ETN) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• Eaton has a “Moderate Buy” consensus rating from 20 analysts: 14 rate it a buy, four recommend holding, and two assign a strong-buy rating. The average one-year price target is $431.78.
• Eaton’s latest quarterly results exceeded expectations, with adjusted EPS of $3.15 versus the $3.08 consensus and revenue of $8.53 billion, up 21.4% year over year. Management guided for third-quarter EPS of $3.46–$3.56 and full-year EPS of $13.40–$13.60.
• The company declared a quarterly dividend of $1.10 per share, equivalent to an annualized $4.40 payout and a 1.0% yield. Institutional investors own approximately 82.97% of Eaton’s stock, while insiders sold shares totaling about $496,000 over the past three months.

Eaton Corporation, PLC (NYSE:ETN - Get Free Report) has received a consensus rating of "Moderate Buy" from the twenty research firms that are currently covering the stock, MarketBeat.com reports. Four research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and two have assigned a strong buy rating to the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $431.7778.

ETN has been the topic of a number of research reports. Sanford C. Bernstein restated an "outperform" rating on shares of Eaton in a report on Monday, August 3rd. JPMorgan Chase & Co. increased their price target on shares of Eaton from $406.00 to $445.00 and gave the company an "overweight" rating in a report on Wednesday, May 6th. Evercore raised Eaton from an "in-line" rating to an "outperform" rating and set a $502.00 price objective on the stock in a research note on Monday, August 3rd. KeyCorp upped their price objective on Eaton from $420.00 to $480.00 and gave the company an "overweight" rating in a research report on Wednesday, May 6th. Finally, Wall Street Zen raised Eaton from a "hold" rating to a "buy" rating in a research note on Saturday.

Eaton Stock Down 0.8%

NYSE ETN opened at $444.98 on Tuesday. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.79 and a current ratio of 1.24. The company has a market capitalization of $172.83 billion, a P/E ratio of 45.27, a P/E/G ratio of 2.84 and a beta of 1.18. Eaton has a one year low of $311.92 and a one year high of $457.78. The stock has a 50 day moving average price of $410.26 and a 200-day moving average price of $390.12.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share for the quarter, topping the consensus estimate of $3.08 by $0.07. The company had revenue of $8.53 billion for the quarter, compared to analysts' expectations of $8.16 billion. Eaton had a net margin of 12.75% and a return on equity of 24.58%. Eaton's quarterly revenue was up 21.4% on a year-over-year basis. During the same quarter in the previous year, the business posted $2.95 earnings per share. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS. As a group, equities analysts predict that Eaton will post 13.51 EPS for the current fiscal year.

Eaton Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Investors of record on Friday, August 7th will be given a $1.10 dividend. The ex-dividend date is Friday, August 7th. This represents a $4.40 dividend on an annualized basis and a yield of 1.0%. Eaton's dividend payout ratio (DPR) is currently 44.76%.

Insiders Place Their Bets

In other Eaton news, insider Antonio Galvao sold 494 shares of Eaton stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $405.86, for a total transaction of $200,494.84. Following the completion of the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Dorothy C. Thompson sold 167 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $385.00, for a total transaction of $64,295.00. Following the completion of the sale, the director directly owned 1,096 shares in the company, valued at approximately $421,960. This represents a 13.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 1,186 shares of company stock valued at $496,073 over the last three months. 0.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Brighton Jones LLC raised its holdings in shares of Eaton by 1.4% in the fourth quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company's stock worth $1,109,000 after buying an additional 45 shares during the period. Revolve Wealth Partners LLC boosted its holdings in Eaton by 17.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company's stock valued at $303,000 after acquiring an additional 136 shares during the period. Empowered Funds LLC boosted its holdings in Eaton by 5.6% during the 1st quarter. Empowered Funds LLC now owns 9,402 shares of the industrial products company's stock valued at $2,556,000 after acquiring an additional 496 shares during the period. Vista Capital Partners Inc. bought a new position in Eaton in the 2nd quarter valued at $259,000. Finally, Tandem Wealth Advisors LLC increased its stake in Eaton by 70.1% in the second quarter. Tandem Wealth Advisors LLC now owns 2,216 shares of the industrial products company's stock worth $791,000 after purchasing an additional 913 shares during the period. Hedge funds and other institutional investors own 82.97% of the company's stock.

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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