Eaton (NYSE:ETN) Shares Gap Down - Here's What Happened

Key Points

• Eaton Corporation's stock gapped down significantly, opening at $360.94 after closing at $384.76, with shares trading at $360.87 during the day.
• Analysts have mixed ratings on Eaton, with new price targets ranging from $300.00 to $410.00, resulting in a consensus rating of "Moderate Buy" and a target price of $377.89.
• The company reported a quarterly EPS of $2.95, exceeding estimates, alongside a revenue growth of 10.7% year-over-year, and announced a quarterly dividend of $1.04.

Eaton Corporation, PLC (NYSE:ETN - Get Free Report)'s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $384.76, but opened at $360.94. Eaton shares last traded at $360.87, with a volume of 803,484 shares trading hands.

Analysts Set New Price Targets

Several equities analysts have issued reports on the stock. JPMorgan Chase & Co. upped their price objective on shares of Eaton from $300.00 to $360.00 and gave the company an "overweight" rating in a research note on Friday, May 16th. Wall Street Zen cut shares of Eaton from a "buy" rating to a "hold" rating in a report on Saturday. Morgan Stanley cut their price target on shares of Eaton from $385.00 to $375.00 and set an "overweight" rating for the company in a report on Tuesday, May 6th. Royal Bank Of Canada increased their target price on shares of Eaton from $336.00 to $356.00 and gave the company an "outperform" rating in a report on Monday, May 5th. Finally, KeyCorp raised their price objective on shares of Eaton from $355.00 to $410.00 and gave the stock an "overweight" rating in a research note on Tuesday, July 15th. Seven equities research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $377.89.

Eaton Price Performance

The firm has a market cap of $140.78 billion, a price-to-earnings ratio of 36.35, a price-to-earnings-growth ratio of 2.88 and a beta of 1.18. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.84 and a current ratio of 1.31. The company's fifty day moving average is $352.19 and its two-hundred day moving average is $317.69.

Eaton (NYSE:ETN - Get Free Report) last released its quarterly earnings results on Tuesday, August 5th. The industrial products company reported $2.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.92 by $0.03. The firm had revenue of $7.03 billion for the quarter, compared to the consensus estimate of $6.93 billion. Eaton had a net margin of 15.55% and a return on equity of 23.41%. The firm's quarterly revenue was up 10.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.73 EPS. Equities research analysts forecast that Eaton Corporation, PLC will post 12.02 EPS for the current year.

Eaton Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Stockholders of record on Thursday, August 7th will be given a $1.04 dividend. The ex-dividend date of this dividend is Thursday, August 7th. This represents a $4.16 annualized dividend and a dividend yield of 1.2%. Eaton's payout ratio is presently 41.98%.

Insider Activity at Eaton

In other news, insider Craig Arnold sold 103,486 shares of Eaton stock in a transaction dated Monday, May 12th. The shares were sold at an average price of $322.75, for a total value of $33,400,106.50. Following the completion of the transaction, the insider directly owned 490,208 shares of the company's stock, valued at approximately $158,214,632. The trade was a 17.43% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. IMA Advisory Services Inc. acquired a new stake in shares of Eaton in the 1st quarter worth approximately $25,000. Capital A Wealth Management LLC acquired a new stake in shares of Eaton in the 4th quarter worth approximately $26,000. Creative Financial Designs Inc. ADV lifted its stake in shares of Eaton by 102.0% in the 1st quarter. Creative Financial Designs Inc. ADV now owns 101 shares of the industrial products company's stock worth $27,000 after acquiring an additional 51 shares during the period. Vermillion Wealth Management Inc. acquired a new stake in shares of Eaton in the 4th quarter worth approximately $33,000. Finally, Abound Wealth Management lifted its stake in shares of Eaton by 73.8% in the 1st quarter. Abound Wealth Management now owns 146 shares of the industrial products company's stock worth $40,000 after acquiring an additional 62 shares during the period. 82.97% of the stock is owned by institutional investors and hedge funds.

Eaton Company Profile

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.

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