Eaton Corporation, PLC $ETN Stock: Sterling Capital Management LLC Lowers Position

Key Points

• Sterling Capital Management cut its Eaton position by 7.6% in the third quarter, selling 8,593 shares and retaining 104,649 shares valued at approximately $45.0 million. Institutional investors still own 82.97% of the company, with several other funds increasing their stakes.
• Eaton shares fell 0.8% to $366.12, trading well below their 50-day and 200-day moving averages. The stock carries a relatively high valuation of about 37 times earnings, despite a 12-month range of $311.92 to $478.00.
• Fundamentals and analyst sentiment remain broadly positive: Eaton beat quarterly earnings and revenue estimates, reported 21.4% year-over-year revenue growth, and has a “Moderate Buy” consensus rating with an average price target of $484.10.

Sterling Capital Management LLC lowered its position in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) by 7.6% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 104,649 shares of the industrial products company's stock after selling 8,593 shares during the period. Eaton comprises about 0.9% of Sterling Capital Management LLC's holdings, making the stock its 16th largest holding. Sterling Capital Management LLC's holdings in Eaton were worth $44,969,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the company. Assenagon Asset Management S.A. raised its stake in shares of Eaton by 87.1% during the third quarter. Assenagon Asset Management S.A. now owns 282,750 shares of the industrial products company's stock worth $121,501,000 after acquiring an additional 131,624 shares in the last quarter. Sustainable Growth Advisers LP purchased a new stake in shares of Eaton in the 3rd quarter valued at $85,752,000. Envestnet Portfolio Solutions Inc. grew its holdings in shares of Eaton by 5.5% during the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 69,297 shares of the industrial products company's stock valued at $29,529,000 after purchasing an additional 3,638 shares during the last quarter. Wedmont Private Capital grew its holdings in shares of Eaton by 69.6% during the 3rd quarter. Wedmont Private Capital now owns 11,413 shares of the industrial products company's stock valued at $4,845,000 after purchasing an additional 4,684 shares during the last quarter. Finally, QRG Capital Management Inc. raised its position in Eaton by 11.7% in the 2nd quarter. QRG Capital Management Inc. now owns 90,731 shares of the industrial products company's stock worth $38,662,000 after purchasing an additional 9,491 shares during the period. 82.97% of the stock is currently owned by hedge funds and other institutional investors.

Eaton Trading Down 0.8%

NYSE:ETN traded down $2.87 during midday trading on Friday, reaching $366.12. 2,266,099 shares of the stock traded hands, compared to its average volume of 2,322,556. The company has a fifty day moving average of $415.65 and a 200 day moving average of $411.02. Eaton Corporation, PLC has a 12 month low of $311.92 and a 12 month high of $478.00. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.79 and a current ratio of 1.24. The stock has a market capitalization of $142.20 billion, a P/E ratio of 37.25, a PEG ratio of 2.14 and a beta of 1.13.

Eaton (NYSE:ETN - Get Free Report) last announced its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share for the quarter, beating the consensus estimate of $3.08 by $0.07. The business had revenue of $8.53 billion during the quarter, compared to analysts' expectations of $8.16 billion. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The firm's revenue for the quarter was up 21.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.95 EPS. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS. On average, research analysts predict that Eaton Corporation, PLC will post 13.59 EPS for the current year.

Analyst Upgrades and Downgrades

Several research firms have weighed in on ETN. UBS Group raised shares of Eaton from a "neutral" rating to a "buy" rating and boosted their price target for the stock from $450.00 to $515.00 in a research note on Monday, September 7th. Evercore raised their price objective on Eaton from $502.00 to $515.00 and gave the company an "outperform" rating in a research note on Tuesday, August 11th. Wells Fargo & Company began coverage on Eaton in a report on Thursday, September 24th. They issued an "overweight" rating and a $503.00 price objective on the stock. Rothschild & Co Redburn boosted their target price on Eaton from $386.00 to $403.00 and gave the company a "neutral" rating in a research note on Wednesday, September 30th. Finally, Sanford C. Bernstein restated an "outperform" rating and set a $534.00 target price (up from $509.00) on shares of Eaton in a report on Monday, August 3rd. One analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $484.10.

Key Stories Impacting Eaton

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Analysts continue to raise their earnings outlook. Zacks lifted its fourth-quarter 2026 EPS estimate to $4.04 from $4.03, while Erste Group raised its fiscal 2026 estimate to $13.59 and fiscal 2027 forecast to $16.32. These revisions suggest expectations for continued growth in Eaton’s higher-margin electrical and data-center businesses. Eaton earnings estimate revisions
• Positive Sentiment: Eaton was highlighted for its energy-efficient electrical products and recognized by IBD as one of the Most Sustainable Companies for a second consecutive year. Its focus on efficient power infrastructure may benefit from expanding electricity and data-center demand. Eaton sustainable profits
• Neutral Sentiment: Eaton has scheduled its next results for November 3. Investors will look for confirmation of its current fiscal 2026 EPS guidance of $13.40–$13.60 and indications that demand from data centers and electrical infrastructure remains strong. Eaton schedules November 3 results
• Negative Sentiment: Baird lowered its price target for ETN to $485 from $500. Although the revised target remains well above recent trading levels, the cut can weigh on sentiment, particularly with the stock trading below its 50-day and 200-day moving averages. Baird cuts Eaton price target
• Negative Sentiment: The shares recently fell 6.33% in one session, indicating broad near-term selling pressure. With quarterly results approaching and valuation still elevated at roughly 37 times earnings, investors may be locking in gains or reducing exposure until Eaton reports. Eaton shares decline more than the market

Insider Activity

In other news, Director Gerald Johnson acquired 130 shares of the stock in a transaction dated Thursday, August 13th. The stock was purchased at an average cost of $455.90 per share, with a total value of $59,267.00. Following the completion of the purchase, the director owned 1,829 shares in the company, valued at approximately $833,841.10. The trade was a 7.65% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Adam Wadecki sold 525 shares of the stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $440.54, for a total transaction of $231,283.50. Following the sale, the insider owned 1,054 shares of the company's stock, valued at approximately $464,329.16. This represents a 33.25% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.10% of the company's stock.

About Eaton

Eaton Corporation plc is a global intelligent power management company that helps businesses, utilities, data centers, manufacturers and other organizations manage electrical, hydraulic and mechanical power more safely, efficiently and reliably. Its solutions support applications ranging from power distribution and backup systems to industrial automation, building infrastructure and transportation.

The company's Electrical segment provides products and systems such as circuit breakers, switchgear, power distribution equipment, surge protection, energy management software and data center power solutions.

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