Engine NO. 1 LLC Makes New Investment in Eaton Corporation, PLC $ETN

Key Points

• Engine NO. 1 LLC purchased 20,400 shares of Eaton Corporation, PLC, valued at approximately $5.5 million, making it the company's 4th largest position at 7.1% of its portfolio.
• Insider Olivier Leonetti sold 16,018 shares for over $5.7 million, resulting in a significant decrease (96.22%) in his ownership stake.
• Eaton reported strong quarterly earnings, with a profit of $2.95 per share, surpassing analyst expectations and showing a year-over-year revenue increase of 10.7%.

Engine NO. 1 LLC bought a new position in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) during the first quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor bought 20,400 shares of the industrial products company's stock, valued at approximately $5,545,000. Eaton makes up 7.1% of Engine NO. 1 LLC's investment portfolio, making the stock its 4th largest position.

A number of other large investors also recently modified their holdings of ETN. Vanguard Group Inc. boosted its stake in Eaton by 0.8% in the first quarter. Vanguard Group Inc. now owns 37,507,725 shares of the industrial products company's stock valued at $10,195,725,000 after acquiring an additional 289,819 shares during the last quarter. Nuveen LLC bought a new position in Eaton in the first quarter valued at approximately $1,472,231,000. Nuveen Asset Management LLC boosted its stake in Eaton by 4.3% in the fourth quarter. Nuveen Asset Management LLC now owns 4,671,185 shares of the industrial products company's stock valued at $1,550,226,000 after acquiring an additional 192,482 shares during the last quarter. Goldman Sachs Group Inc. boosted its stake in Eaton by 12.0% in the first quarter. Goldman Sachs Group Inc. now owns 3,985,735 shares of the industrial products company's stock valued at $1,083,442,000 after acquiring an additional 427,509 shares during the last quarter. Finally, Invesco Ltd. boosted its stake in Eaton by 15.8% in the first quarter. Invesco Ltd. now owns 3,913,209 shares of the industrial products company's stock valued at $1,063,727,000 after acquiring an additional 533,774 shares during the last quarter. 82.97% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Eaton

In related news, insider Olivier Leonetti sold 16,018 shares of Eaton stock in a transaction dated 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 completion of the sale, the insider owned 630 shares of the company's stock, valued at approximately $225,785.70. The trade was a 96.22% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 0.30% of the company's stock.

Eaton Stock Performance

Shares of ETN stock traded down $1.13 during midday trading on Wednesday, hitting $342.62. 1,485,114 shares of the company were exchanged, compared to its average volume of 2,965,668. The firm has a market capitalization of $133.38 billion, a P/E ratio of 34.47, a PEG ratio of 2.57 and a beta of 1.16. The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.76 and a current ratio of 1.24. The firm's 50 day moving average price is $362.41 and its two-hundred day moving average price is $321.51. Eaton Corporation, PLC has a 52 week low of $231.85 and a 52 week high of $399.56.

Eaton (NYSE:ETN - Get Free Report) last announced its earnings results on Tuesday, August 5th. The industrial products company reported $2.95 EPS for the quarter, topping the consensus estimate of $2.92 by $0.03. The business had revenue of $7.03 billion during the quarter, compared to the consensus estimate of $6.93 billion. Eaton had a net margin of 15.11% and a return on equity of 23.91%. Eaton's revenue was up 10.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.73 EPS. Eaton has set its Q3 2025 guidance at 3.010-3.070 EPS. FY 2025 guidance at 11.970-12.170 EPS. As a group, equities research analysts anticipate that Eaton Corporation, PLC will post 12.02 earnings per share for the current year.

Eaton Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Thursday, August 7th were issued a dividend of $1.04 per share. The ex-dividend date of this dividend was Thursday, August 7th. This represents a $4.16 annualized dividend and a dividend yield of 1.2%. Eaton's payout ratio is presently 41.85%.

Analysts Set New Price Targets

A number of equities analysts have issued reports on ETN shares. The Goldman Sachs Group raised their price objective on shares of Eaton from $345.00 to $382.00 and gave the company a "buy" rating in a research note on Tuesday, July 8th. BNP Paribas Exane began coverage on shares of Eaton in a report on Thursday, May 15th. They issued an "outperform" rating and a $380.00 target price on the stock. JPMorgan Chase & Co. increased their target price on shares of Eaton from $300.00 to $360.00 and gave the stock an "overweight" rating in a report on Friday, May 16th. Wells Fargo & Company increased their target price on shares of Eaton from $310.00 to $360.00 and gave the stock an "equal weight" rating in a report on Tuesday, July 1st. Finally, Morgan Stanley increased their target price on shares of Eaton from $375.00 to $425.00 and gave the stock an "overweight" rating in a report on Wednesday, August 6th. Fourteen equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, Eaton currently has an average rating of "Moderate Buy" and an average price target of $379.10.

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.