Eaton Corporation, PLC $ETN Shares Sold by Avity Investment Management Inc.

Key Points

• Avity Investment Management reduced its Eaton stake by 3.6% in the third quarter, selling 3,708 shares and retaining 98,622 shares valued at approximately $42.4 million. Institutional investors collectively own 82.97% of Eaton.
• Eaton reported strong operating momentum: quarterly earnings of $3.15 per share and revenue of $8.53 billion exceeded analyst expectations, while revenue rose 21.4% year over year. The company also issued full-year 2026 EPS guidance of $13.40 to $13.60.
• Analysts remain broadly bullish, supported by data-center and electrification demand. Eaton has a “Moderate Buy” consensus rating and an average price target of $480.18, though its valuation—about 43.7 times earnings—could limit upside and increase sensitivity to a slowdown in infrastructure spending.

Avity Investment Management Inc. trimmed its holdings in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) by 3.6% during the third quarter, according to its most recent Form 13F filing with the SEC. The firm owned 98,622 shares of the industrial products company's stock after selling 3,708 shares during the period. Eaton makes up approximately 2.6% of Avity Investment Management Inc.'s investment portfolio, making the stock its 18th largest holding. Avity Investment Management Inc.'s holdings in Eaton were worth $42,379,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also modified their holdings of the company. Hilton Head Capital Partners LLC bought a new stake in shares of Eaton during the 4th quarter worth about $26,000. Security National Bank of SO Dak bought a new position in shares of Eaton in the second quarter valued at approximately $26,000. Manning & Napier Advisors LLC acquired a new position in shares of Eaton during the second quarter valued at approximately $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new stake in Eaton during the fourth quarter worth approximately $28,000. Finally, Boreal Capital Management LLC acquired a new stake in Eaton in the first quarter worth approximately $33,000. 82.97% of the stock is currently owned by institutional investors.

Eaton News Roundup

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Data-center demand remains a major catalyst. Reports highlight a potential transformer shortage and Eaton’s reportedly substantial backlog, including demand tied to artificial-intelligence data-center construction. This supports visibility for its electrical business and future revenue growth. Data Centers Are Running Out of Transformers. Here's the Industrial Stock With a 3-Year Backlog.
• Positive Sentiment: Global manufacturing capacity supports resilience. Eaton’s diversified production network may help it manage supply-chain disruptions while positioning the company to benefit from electrification, grid investment and infrastructure modernization. Eaton's Diversified Global Network Supports Growth and Resilience
• Positive Sentiment: Operating momentum remains solid. Eaton’s latest reported quarter exceeded consensus estimates for earnings and revenue, while sales grew strongly year over year. Management’s current full-year earnings outlook also reinforces expectations for continued growth.
• Neutral Sentiment: Analyst and media coverage is constructive but not a new fundamental event. Recent commentary compares Eaton with Vestas Wind Systems on value and discusses its data-center exposure, while Jim Cramer views Eaton as an industrial beneficiary of data-center investment. Analysts Offer Insights on Industrial Goods Companies
• Negative Sentiment: Valuation could limit further upside. The value-stock comparison underscores that Eaton trades at a relatively demanding earnings multiple, leaving the shares sensitive to interest rates, estimates and any slowdown in infrastructure or data-center spending. VWDRY or ETN: Which Is the Better Value Stock Right Now?
• Negative Sentiment: Recent selling reflects near-term caution. ETN recently underperformed the broader market and fell sharply in the prior session, suggesting profit-taking or concerns about valuation despite the company’s favorable long-term growth narrative.

Eaton Price Performance

Shares of ETN traded up $4.80 during trading hours on Friday, hitting $429.31. 1,632,950 shares of the company were exchanged, compared to its average volume of 2,514,214. Eaton Corporation, PLC has a one year low of $311.92 and a one year high of $478.00. The company has a market capitalization of $166.74 billion, a PE ratio of 43.67, a PEG ratio of 2.50 and a beta of 1.13. The company has a debt-to-equity ratio of 0.91, a current ratio of 1.24 and a quick ratio of 0.79. The firm has a fifty day simple moving average of $426.18 and a 200-day simple moving average of $408.47.

Eaton (NYSE:ETN - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share for the quarter, topping analysts' consensus estimates of $3.08 by $0.07. Eaton had a return on equity of 24.58% and a net margin of 12.75%.The firm had revenue of $8.53 billion for the quarter, compared to analysts' expectations of $8.16 billion. During the same quarter last year, the business posted $2.95 EPS. Eaton's revenue was up 21.4% on a year-over-year basis. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS. As a group, sell-side analysts predict that Eaton Corporation, PLC will post 13.57 earnings per share for the current year.

Eaton Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 7th were given a $1.10 dividend. This represents a $4.40 annualized dividend and a dividend yield of 1.0%. The ex-dividend date was Friday, August 7th. Eaton's dividend payout ratio is 44.76%.

Insider Buying and Selling

In other news, insider Heath B. Monesmith sold 18,036 shares of the firm's stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $458.04, for a total value of $8,261,209.44. Following the completion of the sale, the insider owned 50,368 shares of the company's stock, valued at $23,070,558.72. This trade represents a 26.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, Director Gerald Johnson purchased 130 shares of the company's stock in a transaction that occurred on Thursday, August 13th. The shares were acquired at an average cost of $455.90 per share, for a total transaction of $59,267.00. Following the completion of the transaction, the director directly owned 1,829 shares of the company's stock, valued at $833,841.10. This trade represents a 7.65% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 0.10% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on ETN shares. Robert W. Baird set a $500.00 price objective on Eaton and gave the stock an "outperform" rating in a research note on Thursday, August 20th. UBS Group raised Eaton from a "neutral" rating to a "buy" rating and raised their target price for the company from $450.00 to $515.00 in a research note on Monday, September 7th. Wall Street Zen lowered Eaton from a "buy" rating to a "hold" rating in a report on Sunday, August 16th. Argus upped their price target on shares of Eaton from $475.00 to $528.00 and gave the company a "buy" rating in a report on Tuesday, August 18th. Finally, Morgan Stanley raised their price objective on shares of Eaton from $500.00 to $520.00 and gave the company an "overweight" rating in a research report on Friday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Eaton currently has an average rating of "Moderate Buy" and an average price target of $480.18.

Eaton Profile

Eaton Corporation plc NYSE: ETN is a global power management company that helps customers manage electrical, hydraulic and mechanical power more safely, efficiently and reliably. Its products and systems serve commercial, industrial, utility, data center, residential, aerospace, vehicle and mobility applications.

The company's electrical businesses provide circuit protection and control equipment, power distribution systems, connectivity solutions, backup power and other technologies used to support critical infrastructure and improve energy efficiency.

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