Davis R M Inc. Acquires 2,401 Shares of Eaton Corporation, PLC (NYSE:ETN)

Key Points

• Davis R M Inc. increased its stake in Eaton Corporation by 1.2%, owning a total of 198,030 shares, valued at approximately $53.83 million.
• Eaton reported earnings per share (EPS) of $2.72 for the last quarter, exceeding estimates, with revenue of $6.38 billion, a 7.3% increase year-over-year.
• The company announced a quarterly dividend of $1.04 per share, reflecting an annual yield of 1.07% and a dividend payout ratio of 41.98%.

Davis R M Inc. grew its stake in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) by 1.2% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 198,030 shares of the industrial products company's stock after purchasing an additional 2,401 shares during the quarter. Eaton comprises about 1.1% of Davis R M Inc.'s portfolio, making the stock its 28th biggest holding. Davis R M Inc. owned about 0.05% of Eaton worth $53,830,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors have also recently made changes to their positions in ETN. IMA Advisory Services Inc. bought a new position in shares of Eaton during the 1st quarter worth approximately $25,000. Capital A Wealth Management LLC bought a new stake in Eaton in the 4th quarter valued at $26,000. Creative Financial Designs Inc. ADV boosted its stake 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 purchasing an additional 51 shares during the period. Vermillion Wealth Management Inc. bought a new stake in Eaton in the 4th quarter valued at $33,000. Finally, Abound Wealth Management boosted its stake in Eaton by 73.8% in the 1st quarter. Abound Wealth Management now owns 146 shares of the industrial products company's stock valued at $40,000 after purchasing an additional 62 shares during the period. Institutional investors and hedge funds own 82.97% of the company's stock.

Insider Transactions at Eaton

In other Eaton news, insider Michael Yelton sold 2,120 shares of the company's stock in a transaction dated Tuesday, May 6th. The stock was sold at an average price of $296.87, for a total value of $629,364.40. Following the sale, the insider owned 3,382 shares in the company, valued at approximately $1,004,014.34. The trade was a 38.53% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Craig Arnold sold 103,486 shares of the company's stock in a transaction dated 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 sale, the insider owned 490,208 shares in the company, valued at $158,214,632. This trade represents a 17.43% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 156,660 shares of company stock worth $49,622,894 in the last quarter. Corporate insiders own 0.30% of the company's stock.

Analyst Ratings Changes

Several analysts recently issued reports on ETN shares. BNP Paribas Exane started coverage on Eaton in a research note on Thursday, May 15th. They issued an "outperform" rating and a $380.00 price target for the company. The Goldman Sachs Group upped their target price on Eaton from $345.00 to $382.00 and gave the company a "buy" rating in a research report on Tuesday, July 8th. Wells Fargo & Company upped their target price on Eaton from $310.00 to $360.00 and gave the company an "equal weight" rating in a research report on Tuesday, July 1st. Wall Street Zen upgraded Eaton from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. Finally, Morgan Stanley cut their target price on Eaton from $385.00 to $375.00 and set an "overweight" rating for the company in a research report on Tuesday, May 6th. Six investment analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $377.89.

Eaton Price Performance

ETN traded down $3.20 on Friday, reaching $381.52. The stock had a trading volume of 2,416,764 shares, compared to its average volume of 2,049,141. Eaton Corporation, PLC has a fifty-two week low of $231.85 and a fifty-two week high of $399.56. The firm has a 50-day moving average of $350.92 and a 200-day moving average of $317.79. The company has a current ratio of 1.31, a quick ratio of 0.84 and a debt-to-equity ratio of 0.41. The company has a market capitalization of $149.29 billion, a price-to-earnings ratio of 38.50, a price-to-earnings-growth ratio of 2.90 and a beta of 1.18.

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

Eaton Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 22nd. Shareholders of record on Thursday, August 7th will be given a $1.04 dividend. This represents a $4.16 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date is Thursday, August 7th. Eaton's payout ratio is 41.98%.

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.