Eaton (NYSE:ETN) Trading Up 4.5% - Still a Buy?

Key Points

• Eaton shares rose 4.5% to about $426.51, outperforming recent trading levels and moving above both its 50-day and 200-day averages.
• Wall Street sentiment remains constructive, with multiple firms recently initiating or reiterating Buy/Outperform ratings and a consensus Moderate Buy target of $420.95, though Morgan Stanley sees upside to $500.
• The company posted a strong quarter, beating EPS and revenue estimates, and also highlighted a quarterly dividend of $1.10 per share with an annualized yield of about 1.0%.

Shares of Eaton Corporation, PLC (NYSE:ETN - Get Free Report) shot up 4.5% on Tuesday . The stock traded as high as $427.93 and last traded at $426.5130. Approximately 2,517,141 shares traded hands during trading, a decline of 9% from the average daily volume of 2,761,272 shares. The stock had previously closed at $408.26.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on ETN shares. Erste Group Bank started coverage on shares of Eaton in a research note on Tuesday, May 5th. They issued a "buy" rating on the stock. Jefferies Financial Group started coverage on shares of Eaton in a research report on Monday, March 16th. They set a "buy" rating and a $430.00 price objective for the company. BMO Capital Markets started coverage on Eaton in a research report on Friday, March 27th. They issued an "outperform" rating and a $428.00 target price on the stock. Morgan Stanley restated an "overweight" rating and set a $500.00 price target on shares of Eaton in a research note on Sunday, May 10th. Finally, Weiss Ratings lowered Eaton from a "buy (b)" rating to a "buy (b-)" rating in a research report on Monday, May 18th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $420.95.

Eaton Price Performance

The company's 50-day moving average price is $406.24 and its 200-day moving average price is $372.51. The company has a quick ratio of 0.75, a current ratio of 1.19 and a debt-to-equity ratio of 0.94. The firm has a market cap of $165.61 billion, a price-to-earnings ratio of 41.69, a PEG ratio of 2.59 and a beta of 1.20.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share for the quarter, beating analysts' consensus estimates of $2.73 by $0.08. The firm had revenue of $7.45 billion during the quarter, compared to analysts' expectations of $7.14 billion. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The business's quarterly revenue was up 16.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $2.72 earnings per share. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS. On average, equities research analysts forecast that Eaton Corporation, PLC will post 13.33 EPS for the current year.

Eaton Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 8th were given a dividend of $1.10 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.0%. Eaton's dividend payout ratio is currently 43.01%.

Insiders Place Their Bets

In related news, insider Antonio Galvao sold 494 shares of Eaton stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $405.86, for a total value of $200,494.84. Following the completion of the transaction, the insider directly owned 9,175 shares in the company, valued at approximately $3,723,765.50. This trade represents a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Dorothy C. Thompson sold 167 shares of the business's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $385.00, for a total value of $64,295.00. Following the transaction, the director directly owned 1,096 shares of the company's stock, valued at $421,960. The trade was a 13.22% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 21,028 shares of company stock valued at $8,614,793. 0.10% of the stock is owned by company insiders.

Institutional Trading of Eaton

Several hedge funds have recently added to or reduced their stakes in ETN. Hilton Head Capital Partners LLC acquired a new position in Eaton during the 4th quarter worth approximately $26,000. Sfam LLC acquired a new stake in shares of Eaton in the 4th quarter valued at $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new stake in shares of Eaton during the 4th quarter worth $28,000. Eagle Bay Advisors LLC purchased a new stake in shares of Eaton during the 4th quarter worth $29,000. Finally, Boreal Capital Management LLC acquired a new position in shares of Eaton during the first quarter worth $33,000. Institutional investors and hedge funds 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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