Eaton (NYSE:ETN) Receives "Buy" Rating from Jefferies Financial Group

Key Points

• Jefferies reaffirmed a Buy rating on Eaton with a $430 price target, implying about a 17.75% upside from the prior close.
• Analyst sentiment is broadly positive—two Strong Buy, thirteen Buy and five Hold ratings—giving Eaton a MarketBeat consensus of "Moderate Buy" and a consensus price target of $394.89.
• Eaton traded at $365.19 (up $9.79) with a $141.66B market cap and a P/E of 34.91; the company reported $3.23 EPS last quarter and analysts expect about 12.02 EPS for the current year, while an insider recently sold 10,707 shares.

Eaton (NYSE:ETN - Get Free Report)'s stock had its "buy" rating reaffirmed by analysts at Jefferies Financial Group in a report issued on Monday,Benzinga reports. They currently have a $430.00 target price on the industrial products company's stock. Jefferies Financial Group's target price suggests a potential upside of 17.75% from the company's previous close.

Other research analysts have also issued research reports about the company. Wolfe Research upgraded Eaton from a "peer perform" rating to an "outperform" rating and set a $413.00 target price for the company in a research report on Tuesday, December 9th. Royal Bank Of Canada reiterated an "outperform" rating and issued a $407.00 price target on shares of Eaton in a report on Wednesday, February 4th. Sanford C. Bernstein restated an "outperform" rating on shares of Eaton in a report on Tuesday, January 27th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Eaton in a research report on Wednesday, January 21st. Finally, Morgan Stanley reiterated an "overweight" rating and set a $425.00 target price on shares of Eaton in a research report on Wednesday, February 4th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, Eaton currently has an average rating of "Moderate Buy" and a consensus price target of $394.89.

Eaton Price Performance

ETN stock traded up $9.79 during mid-day trading on Monday, hitting $365.19. The company had a trading volume of 220,155 shares, compared to its average volume of 2,962,967. The company has a 50-day moving average price of $355.74 and a 200 day moving average price of $355.34. Eaton has a 12-month low of $231.85 and a 12-month high of $408.45. The company has a market capitalization of $141.66 billion, a price-to-earnings ratio of 34.91, a P/E/G ratio of 2.45 and a beta of 1.17. 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 (NYSE:ETN - Get Free Report) last announced its quarterly earnings results on Thursday, February 26th. The industrial products company reported $3.23 earnings per share for the quarter. Eaton had a net margin of 14.89% and a return on equity of 25.00%. On average, research analysts anticipate that Eaton will post 12.02 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Sternadt Paulo Ruiz sold 10,707 shares of the firm's stock in a transaction 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 completion of the transaction, the insider owned 27,729 shares in the company, valued at $10,821,519.54. This trade represents a 27.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.30% of the stock is owned by company insiders.

Institutional Trading of Eaton

Hedge funds have recently modified their holdings of the stock. PFA Pension Forsikringsaktieselskab purchased a new position in Eaton during the fourth quarter worth approximately $97,989,000. SG Americas Securities LLC raised 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 buying an additional 297,166 shares during the period. Clal Insurance Enterprises Holdings Ltd lifted its position in shares of Eaton by 239,384.8% during the 4th quarter. Clal Insurance Enterprises Holdings Ltd now owns 158,060 shares of the industrial products company's stock valued at $50,344,000 after buying an additional 157,994 shares in the last quarter. Silvercrest Asset Management Group LLC increased its holdings in Eaton by 23.1% in 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, Mediolanum International Funds Ltd increased its holdings in Eaton by 93.4% in the 2nd quarter. Mediolanum International Funds Ltd now owns 106,114 shares of the industrial products company's stock worth $37,483,000 after acquiring an additional 51,255 shares in the last quarter. 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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