Eaton (NYSE:ETN) Upgraded to Buy at Melius

Key Points

• Eaton has been upgraded to a "buy" rating by Melius, with a target price of $495.00, indicating a potential upside of 35.13% from its previous close.
• The stock has received varying target price adjustments from several analysts, with current consensus rating classified as "Moderate Buy" and an average target price of $385.14.
• Eaton reported a quarterly earnings per share of $2.95, exceeding expectations, with a revenue increase of 10.7% year-over-year amounting to $7.03 billion.

Eaton (NYSE:ETN - Get Free Report) was upgraded by stock analysts at Melius from a "hold" rating to a "buy" rating in a research note issued to investors on Monday, MarketBeat Ratings reports. The brokerage presently has a $495.00 target price on the industrial products company's stock. Melius' target price suggests a potential upside of 35.13% from the company's previous close.

A number of other equities research analysts also recently commented on the company. Sanford C. Bernstein reissued an "outperform" rating and issued a $396.00 target price on shares of Eaton in a report on Monday, July 14th. Barclays lifted their price target on Eaton from $340.00 to $344.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 6th. Raymond James Financial lifted their price target on Eaton from $380.00 to $415.00 and gave the stock an "outperform" rating in a research note on Thursday, August 7th. Daiwa America raised Eaton to a "strong-buy" rating in a research note on Thursday. Finally, Morgan Stanley lifted their price target on Eaton from $375.00 to $425.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and seven have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $385.14.

Eaton Stock Performance

Shares of ETN opened at $366.31 on Monday. The company's 50 day simple moving average is $362.13 and its 200-day simple moving average is $324.63. Eaton has a 12-month low of $231.85 and a 12-month high of $399.56. The company has a current ratio of 1.24, a quick ratio of 0.76 and a debt-to-equity ratio of 0.47. The firm has a market cap of $142.60 billion, a PE ratio of 36.85, a price-to-earnings-growth ratio of 2.61 and a beta of 1.17.

Eaton (NYSE:ETN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The industrial products company reported $2.95 earnings per share for the quarter, beating 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 firm had revenue of $7.03 billion for the quarter, compared to analyst estimates of $6.93 billion. During the same period last year, the firm posted $2.73 EPS. Eaton's quarterly revenue was up 10.7% on a year-over-year basis. Eaton has set its Q3 2025 guidance at 3.010-3.070 EPS. FY 2025 guidance at 11.970-12.170 EPS. As a group, equities analysts predict that Eaton will post 12.02 EPS for the current year.

Insider Buying and Selling

In related news, insider Olivier Leonetti sold 16,018 shares of Eaton stock in a transaction dated Thursday, August 7th. The stock was sold at an average price of $358.39, for a total transaction of $5,740,691.02. Following the completion of the sale, the insider owned 630 shares in the company, valued at approximately $225,785.70. This trade represents a 96.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.30% of the company's stock.

Institutional Trading of Eaton

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Capital A Wealth Management LLC purchased a new stake in Eaton in the 4th quarter valued at about $26,000. IMA Advisory Services Inc. purchased a new stake in Eaton in the 1st quarter valued at about $25,000. Vermillion Wealth Management Inc. purchased a new stake in Eaton in the 4th quarter valued at about $33,000. WFA of San Diego LLC purchased a new stake in Eaton in the 2nd quarter valued at about $36,000. Finally, Creative Financial Designs Inc. ADV grew its holdings in Eaton by 102.0% in the 1st quarter. Creative Financial Designs Inc. ADV now owns 101 shares of the industrial products company's stock valued at $27,000 after buying an additional 51 shares during the period. Hedge funds and other institutional investors own 82.97% of the company's stock.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.