Cullen Frost Bankers Inc. Decreases Holdings in Eaton Corporation, PLC $ETN

Key Points

• Cullen Frost Bankers reduced its Eaton stake by 4.0% in the fourth quarter, selling 6,507 shares and leaving it with 156,127 shares worth about $49.7 million.
• Eaton reported better-than-expected quarterly results, with EPS of $2.81 versus $2.73 expected and revenue of $7.45 billion, up 16.8% year over year.
• The company also announced a quarterly dividend of $1.10 per share, alongside upbeat analyst sentiment, including multiple buy ratings and a consensus price target of $420.95.

Cullen Frost Bankers Inc. trimmed its position in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) by 4.0% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 156,127 shares of the industrial products company's stock after selling 6,507 shares during the period. Cullen Frost Bankers Inc.'s holdings in Eaton were worth $49,728,000 as of its most recent SEC filing.

Other large investors also recently modified their holdings of the company. Cornerstone Planning Group LLC increased its stake in Eaton by 9.3% in the 3rd quarter. Cornerstone Planning Group LLC now owns 328 shares of the industrial products company's stock worth $126,000 after purchasing an additional 28 shares during the period. MTM Investment Management LLC increased its stake in Eaton by 0.6% in the 3rd quarter. MTM Investment Management LLC now owns 4,802 shares of the industrial products company's stock worth $1,797,000 after purchasing an additional 29 shares during the period. Correct Capital Wealth Management increased its stake in Eaton by 0.9% in the 3rd quarter. Correct Capital Wealth Management now owns 3,477 shares of the industrial products company's stock worth $1,301,000 after purchasing an additional 31 shares during the period. Stanley Laman Group Ltd. increased its stake in Eaton by 3.1% in the 4th quarter. Stanley Laman Group Ltd. now owns 1,214 shares of the industrial products company's stock worth $387,000 after purchasing an additional 37 shares during the period. Finally, TOWER TRUST & INVESTMENT Co increased its stake in Eaton by 1.5% in the 4th quarter. TOWER TRUST & INVESTMENT Co now owns 2,545 shares of the industrial products company's stock worth $811,000 after purchasing an additional 38 shares during the period. 82.97% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Gerald Johnson bought 215 shares of the company's stock in a transaction on Monday, May 11th. The shares were acquired at an average cost of $419.02 per share, with a total value of $90,089.30. Following the completion of the acquisition, the director owned 1,629 shares of the company's stock, valued at $682,583.58. The trade was a 15.21% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Peter Denk sold 2,000 shares of the business's stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $417.94, for a total value of $835,880.00. Following the completion of the sale, the insider directly owned 7,102 shares in the company, valued at $2,968,209.88. This trade represents a 21.97% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 20,861 shares of company stock valued at $8,550,498. 0.10% of the stock is owned by insiders.

Eaton Trading Down 2.7%

Eaton stock opened at $371.62 on Wednesday. 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 business's fifty day simple moving average is $385.78 and its two-hundred day simple moving average is $362.07. Eaton Corporation, PLC has a 12 month low of $311.90 and a 12 month high of $435.43. The company has a market capitalization of $144.30 billion, a price-to-earnings ratio of 36.33, a price-to-earnings-growth ratio of 2.45 and a beta of 1.24.

Eaton (NYSE:ETN - Get Free Report) last released its earnings results on Tuesday, May 5th. The industrial products company reported $2.81 EPS for the quarter, topping the consensus estimate of $2.73 by $0.08. Eaton had a return on equity of 24.72% and a net margin of 13.99%.The business had revenue of $7.45 billion for the quarter, compared to the consensus estimate of $7.14 billion. During the same period in the previous year, the company posted $2.72 earnings per share. The company's revenue for the quarter 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, equities analysts predict that Eaton Corporation, PLC will post 13.33 earnings per share for the current fiscal year.

Eaton Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 8th will be issued a $1.10 dividend. This represents a $4.40 annualized dividend and a yield of 1.2%. The ex-dividend date of this dividend is Friday, May 8th. Eaton's payout ratio is 43.01%.

Wall Street Analyst Weigh In

A number of brokerages have commented on ETN. Citigroup lifted their price target on Eaton from $464.00 to $471.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. Wells Fargo & Company lifted their price target on Eaton from $350.00 to $425.00 and gave the stock an "equal weight" rating in a research note on Wednesday, May 6th. Evercore set a $453.00 price target on Eaton in a research note on Monday, May 11th. Sanford C. Bernstein reaffirmed an "outperform" rating on shares of Eaton in a research note on Tuesday, January 27th. Finally, Erste Group Bank began coverage on Eaton in a research report on Tuesday, May 5th. They issued a "buy" rating on the stock. Two research 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 company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $420.95.

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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