Eaton (NYSE:ETN) Shares Up 4% - Still a Buy?

Key Points

• Eaton shares rose 4% on Monday, trading as high as $412.04 after closing at $391.39, with volume running below the recent average.
• Wall Street sentiment remains positive: multiple firms have recently raised targets, and the stock carries a Moderate Buy consensus with an average price target of $420.95.
• The company posted strong quarterly results, beating EPS and revenue estimates, and it also declared a $1.10 quarterly dividend, equal to a 1.1% annualized yield.

Eaton Corporation, PLC (NYSE:ETN - Get Free Report)'s stock price shot up 4% during trading on Monday . The stock traded as high as $412.04 and last traded at $407.1290. 2,240,585 shares changed hands during mid-day trading, a decline of 19% from the average session volume of 2,765,346 shares. The stock had previously closed at $391.39.

Analyst Upgrades and Downgrades

Several brokerages recently commented on ETN. BMO Capital Markets began coverage on shares of Eaton in a research report on Friday, March 27th. They issued an "outperform" rating and a $428.00 price target for the company. Jefferies Financial Group started coverage on shares of Eaton in a research report on Monday, March 16th. They issued a "buy" rating and a $430.00 price target for the company. Wells Fargo & Company increased their target price on shares of Eaton from $350.00 to $425.00 and gave the stock an "equal weight" rating in a research report on Wednesday, May 6th. KeyCorp increased their target price on shares of Eaton from $420.00 to $480.00 and gave the stock an "overweight" 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. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $420.95.

Eaton Trading Up 4.0%

The company has a current ratio of 1.19, a quick ratio of 0.75 and a debt-to-equity ratio of 0.94. The company has a market cap of $158.09 billion, a PE ratio of 39.80, a P/E/G ratio of 2.52 and a beta of 1.20. The business's 50-day simple moving average is $400.01 and its 200-day simple moving average is $366.81.

Eaton (NYSE:ETN - Get Free Report) last released its earnings results on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.73 by $0.08. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The company had revenue of $7.45 billion during the quarter, compared to the consensus estimate of $7.14 billion. During the same quarter in the prior year, the firm earned $2.72 EPS. The company's revenue was up 16.8% compared to the same quarter last year. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS. As a group, analysts expect that Eaton Corporation, PLC will post 13.32 EPS for the current fiscal year.

Eaton Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 8th were issued a dividend of $1.10 per share. The ex-dividend date was Friday, May 8th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.1%. Eaton's dividend payout ratio (DPR) is currently 43.01%.

Insider Buying and Selling at Eaton

In other news, Director Dorothy C. Thompson sold 167 shares of the firm's 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 transaction, the director owned 1,096 shares in the company, valued at approximately $421,960. This trade represents a 13.22% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gerald Johnson purchased 746 shares of the business's stock in a transaction dated Friday, May 8th. The shares were acquired at an average price of $402.29 per share, for a total transaction of $300,108.34. Following the acquisition, the director directly owned 1,414 shares in the company, valued at $568,838.06. This represents a 111.68% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold 21,028 shares of company stock worth $8,614,793 in the last ninety days. Company insiders own 0.10% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Farmers National Bank raised its holdings in shares of Eaton by 78.4% during the 1st quarter. Farmers National Bank now owns 12,360 shares of the industrial products company's stock valued at $4,421,000 after purchasing an additional 5,433 shares in the last quarter. Evansbrook LLC bought a new position in shares of Eaton during the 1st quarter valued at $778,000. Parallel Advisors LLC raised its holdings in shares of Eaton by 5.3% during the 1st quarter. Parallel Advisors LLC now owns 9,156 shares of the industrial products company's stock valued at $3,275,000 after purchasing an additional 459 shares in the last quarter. Glenmede Trust Co. NA grew its stake in Eaton by 1.1% in the 1st quarter. Glenmede Trust Co. NA now owns 108,949 shares of the industrial products company's stock valued at $38,968,000 after buying an additional 1,199 shares during the last quarter. Finally, Argent Capital Management LLC grew its stake in Eaton by 33.6% in the 1st quarter. Argent Capital Management LLC now owns 162,990 shares of the industrial products company's stock valued at $58,297,000 after buying an additional 40,985 shares during the last quarter. 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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