Eaton Target of Unusually Large Options Trading (NYSE:ETN)

Eaton Corporation, PLC (NYSE:ETN - Get Free Report) saw unusually large options trading on Friday. Traders bought 52,258 call options on the company. This represents an increase of 917% compared to the average volume of 5,137 call options.

Eaton Trading Up 2.4%

Shares of NYSE:ETN traded up $8.24 during midday trading on Friday, reaching $356.38. The company had a trading volume of 1,247,117 shares, compared to its average volume of 2,654,881. The company has a fifty day simple moving average of $316.32 and a two-hundred day simple moving average of $312.86. The firm has a market cap of $139.45 billion, a price-to-earnings ratio of 35.92, a price-to-earnings-growth ratio of 2.65 and a beta of 1.16. Eaton has a 1-year low of $231.85 and a 1-year high of $379.99. The company has a debt-to-equity ratio of 0.41, a quick ratio of 0.84 and a current ratio of 1.31.

Eaton (NYSE:ETN - Get Free Report) last issued its quarterly earnings results on Friday, May 2nd. The industrial products company reported $2.72 EPS for the quarter, beating the consensus estimate of $2.70 by $0.02. The business had revenue of $6.38 billion during the quarter, compared to the consensus estimate of $6.26 billion. Eaton had a net margin of 15.55% and a return on equity of 23.41%. The firm's quarterly revenue was up 7.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $2.40 EPS. Research analysts predict that Eaton will post 12.02 earnings per share for the current year.

Eaton Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, May 23rd. Shareholders of record on Monday, May 5th were given a $1.04 dividend. This represents a $4.16 annualized dividend and a yield of 1.17%. The ex-dividend date was Monday, May 5th. Eaton's payout ratio is currently 41.98%.

Analyst Ratings Changes

Several brokerages have recently weighed in on ETN. JPMorgan Chase & Co. raised their target price on shares of Eaton from $300.00 to $360.00 and gave the stock an "overweight" rating in a research report on Friday, May 16th. Citigroup raised their price objective on Eaton from $323.00 to $351.00 and gave the stock a "buy" rating in a report on Monday, May 5th. Morgan Stanley reduced their price objective on Eaton from $385.00 to $375.00 and set an "overweight" rating on the stock in a research note on Tuesday, May 6th. BNP Paribas Exane assumed coverage on shares of Eaton in a research report on Thursday, May 15th. They set an "outperform" rating and a $380.00 target price for the company. Finally, Barclays raised their price target on shares of Eaton from $306.00 to $323.00 and gave the company an "equal weight" rating in a report on Monday, June 9th. Five research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the stock. Based on data from MarketBeat, Eaton has a consensus rating of "Moderate Buy" and an average target price of $368.78.

Insiders Place Their Bets

In other news, insider Craig Arnold sold 103,486 shares of the business's stock in a transaction that occurred on 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 now owns 490,208 shares of the company's stock, valued at $158,214,632. The trade was a 17.43% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Michael Yelton sold 2,120 shares of Eaton stock in a transaction that occurred on Tuesday, May 6th. The stock was sold at an average price of $296.87, for a total transaction of $629,364.40. Following the completion of the sale, the insider now directly owns 3,382 shares of the company's stock, valued at $1,004,014.34. The trade was a 38.53% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 156,660 shares of company stock worth $49,622,894. 0.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Eaton

Institutional investors have recently made changes to their positions in the company. Bearing Point Capital LLC bought a new position in shares of Eaton in the 4th quarter valued at approximately $2,713,000. Brighton Jones LLC boosted its holdings in shares of Eaton by 4.9% during the 1st quarter. Brighton Jones LLC now owns 3,505 shares of the industrial products company's stock worth $953,000 after buying an additional 164 shares during the period. Kennebec Savings Bank grew its stake in Eaton by 5.4% in the 1st quarter. Kennebec Savings Bank now owns 2,715 shares of the industrial products company's stock valued at $738,000 after buying an additional 139 shares during the last quarter. American National Bank & Trust raised its holdings in Eaton by 5.4% in the 1st quarter. American National Bank & Trust now owns 3,145 shares of the industrial products company's stock worth $855,000 after acquiring an additional 162 shares during the period. Finally, Castle Rock Wealth Management LLC lifted its position in Eaton by 7.0% during the 4th quarter. Castle Rock Wealth Management LLC now owns 8,330 shares of the industrial products company's stock worth $2,575,000 after acquiring an additional 543 shares during the last quarter. 82.97% of the stock is currently owned by institutional investors and hedge funds.

About Eaton

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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