Advent Capital Management DE Acquires Shares of 10,000 Eaton Corporation, PLC (NYSE:ETN)

Key Points

• Advent Capital Management DE acquired 10,000 shares of Eaton Corporation, valued at approximately $2.718 million, during the first quarter.
• Eaton reported a 10.7% year-over-year revenue increase reaching $7.03 billion, and its recent earnings per share surpassed estimates by $0.03.
• The company announced a dividend of $1.04 to be paid on August 22, with an annualized yield of 1.1% and a payout ratio of 41.85%.

Advent Capital Management DE acquired a new stake in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) during the first quarter, according to its most recent Form 13F filing with the SEC. The fund acquired 10,000 shares of the industrial products company's stock, valued at approximately $2,718,000.

A number of other hedge funds have also added to or reduced their stakes in ETN. Vanguard Group Inc. grew its position in shares of Eaton by 0.8% in the 1st quarter. Vanguard Group Inc. now owns 37,507,725 shares of the industrial products company's stock worth $10,195,725,000 after buying an additional 289,819 shares during the period. Nuveen Asset Management LLC boosted its stake in Eaton by 4.3% in the 4th quarter. Nuveen Asset Management LLC now owns 4,671,185 shares of the industrial products company's stock worth $1,550,226,000 after purchasing an additional 192,482 shares in the last quarter. Northern Trust Corp boosted its stake in Eaton by 8.8% in the 4th quarter. Northern Trust Corp now owns 4,574,704 shares of the industrial products company's stock worth $1,518,207,000 after purchasing an additional 368,241 shares in the last quarter. Goldman Sachs Group Inc. boosted its stake in Eaton by 12.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 3,985,735 shares of the industrial products company's stock worth $1,083,442,000 after purchasing an additional 427,509 shares in the last quarter. Finally, Invesco Ltd. boosted its stake in Eaton by 15.8% in the 1st quarter. Invesco Ltd. now owns 3,913,209 shares of the industrial products company's stock worth $1,063,727,000 after purchasing an additional 533,774 shares in the last quarter. 82.97% of the stock is owned by hedge funds and other institutional investors.

Eaton Stock Performance

Shares of NYSE:ETN traded down $1.98 during trading on Thursday, hitting $355.52. The company's stock had a trading volume of 1,225,304 shares, compared to its average volume of 3,061,479. The company has a 50-day moving average of $357.16 and a 200-day moving average of $318.17. Eaton Corporation, PLC has a 12 month low of $231.85 and a 12 month high of $399.56. The company has a debt-to-equity ratio of 0.47, a current ratio of 1.24 and a quick ratio of 0.76. The firm has a market cap of $138.40 billion, a price-to-earnings ratio of 35.75, a P/E/G ratio of 2.68 and a beta of 1.18.

Eaton (NYSE:ETN - Get Free Report) last released its 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. Eaton had a net margin of 15.11% and a return on equity of 23.91%. The company had revenue of $7.03 billion during the quarter, compared to analyst estimates of $6.93 billion. During the same period in the prior year, the firm posted $2.73 EPS. The firm's quarterly revenue was up 10.7% compared to the same quarter last year. On average, sell-side analysts expect that Eaton Corporation, PLC will post 12.02 earnings per share for the current year.

Eaton Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Thursday, August 7th will be paid a dividend of $1.04 per share. The ex-dividend date is Thursday, August 7th. This represents a $4.16 dividend on an annualized basis and a yield of 1.2%. Eaton's dividend payout ratio (DPR) is presently 41.85%.

Insider Buying and Selling

In other Eaton news, insider Olivier Leonetti sold 16,018 shares of the firm's stock in a transaction that occurred on Thursday, August 7th. The shares were sold at an average price of $358.39, for a total transaction of $5,740,691.02. Following 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 legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Analysts Set New Price Targets

A number of brokerages recently issued reports on ETN. Wall Street Zen cut shares of Eaton from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. BNP Paribas began coverage on shares of Eaton in a research note on Thursday, May 15th. They issued an "outperform" rating and a $380.00 price target on the stock. KeyCorp upped their price target 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. Evercore ISI upped their price target on shares of Eaton from $326.00 to $349.00 and gave the stock an "in-line" rating in a research note on Monday, May 19th. Finally, Citigroup upped their target price on shares of Eaton from $420.00 to $425.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Seven analysts have rated the stock with a hold rating and fourteen have issued a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $383.63.

Eaton 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.