Barclays Forecasts Strong Price Appreciation for Eaton (NYSE:ETN) Stock

Key Points

• Barclays has raised Eaton's price target from $340.00 to $344.00, maintaining an "equal weight" rating, which indicates a potential downside of 4.35% from the current stock price.
• Recent earnings reports showed Eaton's EPS at $2.95, surpassing expectations, with quarterly revenue of $7.03 billion, reflecting a 10.7% year-over-year increase.
• A majority of analysts have a consensus rating of "Moderate Buy" for Eaton, with 14 ratings for buy and 7 for hold.

Eaton (NYSE:ETN - Get Free Report) had its target price raised by Barclays from $340.00 to $344.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has an "equal weight" rating on the industrial products company's stock. Barclays's price objective points to a potential downside of 5.20% from the company's current price.

Several other analysts have also commented on the stock. Citigroup raised their price objective on shares of Eaton from $351.00 to $420.00 and gave the stock a "buy" rating in a report on Monday, July 14th. Morgan Stanley upped their price target on Eaton from $375.00 to $425.00 and gave the stock an "overweight" rating in a research note on Wednesday. BNP Paribas Exane initiated coverage on shares of Eaton in a report on Thursday, May 15th. They set an "outperform" rating and a $380.00 target price on the stock. BNP Paribas began coverage on shares of Eaton in a research report on Thursday, May 15th. They set an "outperform" rating and a $380.00 price target for the company. Finally, Royal Bank Of Canada increased their price objective on shares of Eaton from $336.00 to $356.00 and gave the company an "outperform" rating in a research report on Monday, May 5th. Seven analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. Based on data from MarketBeat, Eaton presently has an average rating of "Moderate Buy" and an average price target of $383.63.

Eaton Price Performance

Shares of ETN traded up $2.70 during midday trading on Wednesday, hitting $362.86. 444,000 shares of the company traded hands, compared to its average volume of 3,069,155. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.24 and a quick ratio of 0.84. Eaton has a one year low of $231.85 and a one year high of $399.56. The firm has a market cap of $141.99 billion, a P/E ratio of 36.53, a PEG ratio of 2.70 and a beta of 1.18. The stock has a 50-day moving average of $354.13 and a 200-day moving average of $318.34.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $2.95 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.92 by $0.03. Eaton had a net margin of 15.11% and a return on equity of 23.91%. The business had revenue of $7.03 billion for the quarter, compared to analyst estimates of $6.93 billion. During the same quarter last year, the firm earned $2.73 EPS. The company's revenue was up 10.7% on a year-over-year basis. As a group, sell-side analysts predict that Eaton will post 12.02 EPS for the current fiscal year.

Insiders Place Their Bets

In other Eaton news, insider Craig Arnold sold 103,486 shares of the stock in a transaction dated Monday, May 12th. The stock was sold at an average price of $322.75, for a total value of $33,400,106.50. Following the completion of the sale, the insider directly owned 490,208 shares in the company, valued at approximately $158,214,632. This trade represents a 17.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Eaton

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC grew its holdings in shares of Eaton by 1.4% during the fourth quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company's stock valued at $1,109,000 after buying an additional 45 shares during the last quarter. Revolve Wealth Partners LLC lifted its position in Eaton by 17.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company's stock worth $303,000 after acquiring an additional 136 shares during the period. Bank Pictet & Cie Europe AG purchased a new stake in Eaton during the 4th quarter valued at about $42,839,000. Dynamic Technology Lab Private Ltd acquired a new position in shares of Eaton in the fourth quarter valued at about $233,000. Finally, FIL Ltd raised its stake in shares of Eaton by 210.2% in the fourth quarter. FIL Ltd now owns 95,086 shares of the industrial products company's stock worth $31,556,000 after purchasing an additional 64,434 shares during the last quarter. 82.97% of the stock is owned by hedge funds and other 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.