Sawyer & Company Inc Buys New Position in Eaton Corporation, PLC $ETN

Key Points

• Sawyer & Company initiated a position in Eaton, purchasing 10,413 shares worth approximately $4.48 million in the third quarter. Eaton now represents about 1.5% of the firm’s portfolio, while institutional investors collectively own 82.97% of the stock.
• Eaton reported quarterly earnings and revenue above analysts’ expectations, with revenue up 21.4% year over year. Its electrical backlog rose 43% and organic sales increased 14%, supported by demand from data centers and grid modernization.
• Shares recently traded around $393.66, at roughly 40 times earnings, making valuation a key concern despite a “Moderate Buy” analyst consensus and average price target of $484.10. Investors are also awaiting third-quarter results on November 3 to assess backlog conversion, margins and guidance.

Sawyer & Company Inc purchased a new stake in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) during the 3rd quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund purchased 10,413 shares of the industrial products company's stock, valued at approximately $4,475,000. Eaton makes up approximately 1.5% of Sawyer & Company Inc's investment portfolio, making the stock its 21st biggest position.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in ETN. Wellington Management Group LLP raised its holdings in Eaton by 19.6% in the second quarter. Wellington Management Group LLP now owns 6,827,266 shares of the industrial products company's stock worth $2,909,235,000 after purchasing an additional 1,120,567 shares in the last quarter. National Pension Service grew its position in shares of Eaton by 3.5% in the 2nd quarter. National Pension Service now owns 864,731 shares of the industrial products company's stock worth $368,479,000 after buying an additional 29,436 shares during the period. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of Eaton by 112.6% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 336,060 shares of the industrial products company's stock worth $120,199,000 after acquiring an additional 178,000 shares in the last quarter. Assenagon Asset Management S.A. increased its stake in shares of Eaton by 87.1% in the 3rd 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. Finally, Bartlett & CO. Wealth Management LLC lifted its position in Eaton by 12.1% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 266,845 shares of the industrial products company's stock valued at $95,442,000 after acquiring an additional 28,815 shares during the period. 82.97% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Eaton

In other Eaton news, insider Heath Monesmith sold 18,036 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $458.04, for a total transaction of $8,261,209.44. Following the sale, the insider directly owned 50,368 shares in the company, valued at approximately $23,070,558.72. This trade represents a 26.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Adam Wadecki sold 525 shares of Eaton stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $440.54, for a total value of $231,283.50. Following the completion of the sale, the insider directly owned 1,054 shares of the company's stock, valued at approximately $464,329.16. The trade was a 33.25% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.10% of the stock is currently owned by insiders.

Key Eaton News

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Eaton’s electrical backlog increased 43% year over year in the second quarter, while organic sales grew 14%. The figures highlight continued demand from data-center infrastructure and electricity-grid modernization, supporting the company’s long-term earnings outlook. Eaton electrical backlog article
• Positive Sentiment: Although uncertainty remains about the pace of data-center construction, Eaton is positioned to benefit from broader grid investment and power-demand growth. This could provide a more durable source of orders if some planned data-center projects are delayed. Grid stocks article
• Neutral Sentiment: Eaton will report third-quarter 2026 results before the market opens on November 3, followed by an 11 a.m. Eastern conference call. The upcoming report is the next major catalyst for confirming backlog conversion, margins and management’s earnings guidance. Eaton earnings announcement
• Neutral Sentiment: At roughly 40 times earnings, Eaton trades above its recent average valuation. Analysts and investors therefore appear to be asking whether the company can convert its sizable backlog into sustained profits without excessive capital spending. Eaton valuation article
• Negative Sentiment: Baird lowered its price target for Eaton to $485, signaling a more cautious near-term view even though the target remains above recent trading levels. The revision may be contributing to selling pressure, particularly given Eaton’s elevated earnings multiple. Baird lowers Eaton price target
• Negative Sentiment: A comparison with Forgent gives investors another reason for caution: Forgent is viewed as having faster projected earnings growth and a backlog covering much of next year’s revenue, making Eaton appear less attractive to some data-center-power investors. Forgent versus Eaton article

Eaton Stock Up 3.1%

Eaton stock traded up $11.68 during mid-day trading on Wednesday, reaching $393.66. The stock had a trading volume of 838,560 shares, compared to its average volume of 2,517,620. Eaton Corporation, PLC has a one year low of $311.92 and a one year high of $478.00. The company has a 50-day moving average price of $420.40 and a two-hundred day moving average price of $411.06. The company has a market capitalization of $152.90 billion, a price-to-earnings ratio of 40.04, a PEG ratio of 2.27 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.

Eaton (NYSE:ETN - Get Free Report) last released its quarterly earnings data on Friday, July 31st. The industrial products company reported $3.15 earnings per share for the quarter, beating analysts' consensus estimates of $3.08 by $0.07. The business had revenue of $8.53 billion during the quarter, compared to analyst estimates of $8.16 billion. Eaton had a net margin of 12.75% and a return on equity of 24.58%. Eaton's revenue was up 21.4% compared to the same quarter last year. During the same period last year, the business earned $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, analysts expect that Eaton Corporation, PLC will post 13.58 EPS for the current fiscal year.

Analyst Ratings Changes

ETN has been the topic of several research reports. Raymond James Financial boosted their price objective on shares of Eaton from $465.00 to $525.00 and gave the stock an "outperform" rating in a research note on Wednesday, August 5th. Weiss Ratings upgraded shares of Eaton from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, October 8th. Morgan Stanley boosted their price target on Eaton from $500.00 to $520.00 and gave the stock an "overweight" rating in a research report on Friday, August 28th. Sanford C. Bernstein reissued an "outperform" rating and issued a $534.00 price target (up from $509.00) on shares of Eaton in a research report on Monday, August 3rd. Finally, Deutsche Bank Aktiengesellschaft upped their price target on Eaton from $493.00 to $521.00 and gave the stock a "buy" rating in a research note on Wednesday, September 30th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, Eaton presently has an average rating of "Moderate Buy" and an average target price of $484.10.

Eaton Profile

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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