Reliant Investment Management LLC Makes New Investment in Eaton Corporation, PLC $ETN

Key Points

• Reliant Investment Management LLC initiated a $9.6 million position in Eaton during the third quarter, purchasing 22,336 shares. Eaton now represents 3.3% of the firm’s portfolio, while institutional investors collectively own 82.97% of the stock.
• Analyst sentiment remains positive, with Eaton rated “Moderate Buy” and a consensus price target of $481.41. RBC and Deutsche Bank recently raised their targets to $526 and $521, respectively, citing growth prospects tied to its backlog and AI data-center exposure.
• Eaton reported quarterly revenue of $8.53 billion, up 21.4% year over year, and EPS of $3.15, exceeding estimates. Shares trade at about 41.5 times earnings, while the company pays a quarterly dividend of $1.10 per share, equivalent to a 1.1% yield.

Reliant Investment Management LLC purchased a new position in Eaton Corporation, PLC (NYSE:ETN - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 22,336 shares of the industrial products company's stock, valued at approximately $9,598,000. Eaton makes up 3.3% of Reliant Investment Management LLC's investment portfolio, making the stock its 10th biggest holding.

Other institutional investors and hedge funds also recently modified their holdings of the company. North Star Investment Management Corp. increased its holdings in shares of Eaton by 0.3% during the first quarter. North Star Investment Management Corp. now owns 8,101 shares of the industrial products company's stock valued at $2,897,000 after purchasing an additional 28 shares during the period. Bogart Wealth LLC lifted its holdings in Eaton by 1.3% in the first quarter. Bogart Wealth LLC now owns 2,184 shares of the industrial products company's stock worth $781,000 after purchasing an additional 29 shares during the period. Bullock Wealth Management Group lifted its holdings in Eaton by 1.8% in the third quarter. Bullock Wealth Management Group now owns 1,694 shares of the industrial products company's stock worth $741,000 after purchasing an additional 30 shares during the period. Tanager Wealth Management LLP grew its position in Eaton by 5.4% in the 2nd quarter. Tanager Wealth Management LLP now owns 606 shares of the industrial products company's stock valued at $258,000 after buying an additional 31 shares in the last quarter. Finally, MinichMacGregor Wealth Management LLC grew its position in Eaton by 6.1% in the 3rd quarter. MinichMacGregor Wealth Management LLC now owns 574 shares of the industrial products company's stock valued at $247,000 after buying an additional 33 shares in the last quarter. Institutional investors own 82.97% of the company's stock.

Key Stories Impacting Eaton

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Royal Bank of Canada raised its price target to $526 from $512 and maintained an “outperform” rating, implying substantial upside from recent trading levels. Royal Bank of Canada raises Eaton price target
• Positive Sentiment: Deutsche Bank increased its Eaton price target to $521 from $493, reinforcing analyst confidence in the company’s growth prospects. Deutsche Bank raises Eaton price target
• Positive Sentiment: Erste Group lifted its FY2027 EPS forecast to $16.12 from $16.00 and its FY2026 estimate to $13.57 from $13.55, reflecting modestly improved earnings expectations. Erste Group raises Eaton earnings estimates
• Positive Sentiment: A favorable investment case highlights Eaton’s strong backlog, margin-recovery potential and participation in the AI data-center buildout, which could support future revenue and earnings growth. Eaton strong backlog and margin recovery support buy case
• Neutral Sentiment: Eaton trades at roughly 43 times earnings, a premium to peers such as Emerson Electric and Parker Hannifin. The premium reflects faster sales growth, but Eaton’s operating-margin conversion is weaker than that of many competitors. Is Eaton stock worth more than its competitors?

Analysts Set New Price Targets

ETN has been the topic of several research analyst reports. BMO Capital Markets raised their target price on shares of Eaton from $477.00 to $487.00 and gave the company an "outperform" rating in a research note on Monday, August 3rd. Robert W. Baird set a $500.00 price target on shares of Eaton and gave the stock an "outperform" rating in a research note on Thursday, August 20th. Wells Fargo & Company assumed coverage on shares of Eaton in a report on Thursday, September 24th. They issued an "overweight" rating and a $503.00 price objective for the company. Deutsche Bank Aktiengesellschaft increased their price objective on shares of Eaton from $493.00 to $521.00 and gave the company a "buy" rating in a report on Wednesday, September 30th. Finally, Rothschild & Co Redburn raised their price objective on shares of Eaton from $386.00 to $403.00 and gave the company a "neutral" rating in a research note on Wednesday, September 30th. One research analyst has rated the stock with a Strong Buy rating, twenty-one have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $481.41.

Eaton Price Performance

Shares of Eaton stock opened at $408.05 on Thursday. Eaton Corporation, PLC has a 52 week low of $311.92 and a 52 week high of $478.00. The company has a current ratio of 1.24, a quick ratio of 0.79 and a debt-to-equity ratio of 0.91. The stock has a market cap of $158.49 billion, a PE ratio of 41.51, a price-to-earnings-growth ratio of 2.49 and a beta of 1.13. The company's 50-day moving average price is $425.12 and its two-hundred day moving average price is $410.06.

Eaton (NYSE:ETN - Get Free Report) last posted its quarterly earnings data 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. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The company had revenue of $8.53 billion during the quarter, compared to analyst estimates of $8.16 billion. The business's revenue for the quarter was up 21.4% on a year-over-year basis. During the same quarter last year, the firm 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. As a group, sell-side analysts anticipate that Eaton Corporation, PLC will post 13.57 EPS for the current fiscal year.

Eaton Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 7th were paid a dividend of $1.10 per share. The ex-dividend date of this dividend was Friday, August 7th. This represents a $4.40 annualized dividend and a yield of 1.1%. Eaton's dividend payout ratio is currently 44.76%.

Insider Activity at Eaton

In other Eaton news, Director Gerald Johnson bought 130 shares of Eaton stock in a transaction that occurred on Thursday, August 13th. The stock was purchased at an average cost of $455.90 per share, for a total transaction of $59,267.00. Following the completion of the acquisition, the director owned 1,829 shares of the company's stock, valued at approximately $833,841.10. This represents a 7.65% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Adam Wadecki sold 525 shares of Eaton stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $440.54, for a total transaction of $231,283.50. Following the completion of the transaction, the insider owned 1,054 shares in the company, valued at approximately $464,329.16. This trade represents a 33.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.10% of the company's stock.

About Eaton

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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