Waterloo Capital L.P. Lowers Stock Holdings in Eaton Corporation, PLC $ETN

Key Points

• Waterloo Capital L.P. cut its Eaton stake by 55.8% in the fourth quarter, ending with 3,126 shares valued at about $996,000.
• Eaton reported strong quarterly results, with EPS of $2.81 beating estimates and revenue of $7.45 billion topping expectations; it also issued upbeat full-year guidance.
• Analysts remain generally positive on the stock, with multiple firms raising price targets and Eaton carrying a “Moderate Buy” consensus rating and average target of about $420.95.

Waterloo Capital L.P. decreased its position in shares of Eaton Corporation, PLC (NYSE:ETN - Free Report) by 55.8% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 3,126 shares of the industrial products company's stock after selling 3,947 shares during the period. Waterloo Capital L.P.'s holdings in Eaton were worth $996,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. Eagle Bay Advisors LLC bought a new position in shares of Eaton during the fourth quarter valued at about $29,000. WFA of San Diego LLC bought a new position in shares of Eaton during the second quarter valued at about $36,000. Imprint Wealth LLC bought a new position in shares of Eaton during the third quarter valued at about $39,000. Redmont Wealth Advisors LLC bought a new position in shares of Eaton during the third quarter valued at about $40,000. Finally, Ares Financial Consulting LLC bought a new position in shares of Eaton during the fourth quarter valued at about $42,000. Hedge funds and other institutional investors own 82.97% of the company's stock.

Insider Activity

In other Eaton news, insider Heath B. Monesmith sold 18,367 shares of the company's stock in a transaction that occurred on Wednesday, May 6th. The stock was sold at an average price of $409.11, for a total transaction of $7,514,123.37. Following the transaction, the insider owned 49,822 shares in the company, valued at approximately $20,382,678.42. This represents a 26.94% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gerald Johnson bought 746 shares of Eaton stock in a transaction on Friday, May 8th. The shares were purchased at an average price of $402.29 per share, for a total transaction of $300,108.34. Following the acquisition, the director directly owned 1,414 shares in the company, valued at approximately $568,838.06. This trade represents a 111.68% increase in their position. The disclosure for this purchase is available in the SEC filing. In the last three months, insiders have sold 21,028 shares of company stock worth $8,614,793. Company insiders own 0.10% of the company's stock.

Analyst Ratings Changes

A number of research analysts have recently issued reports on the company. KeyCorp raised their price objective on Eaton from $420.00 to $480.00 and gave the company an "overweight" rating in a research note on Wednesday, May 6th. Jefferies Financial Group assumed coverage on Eaton in a research note on Monday, March 16th. They set a "buy" rating and a $430.00 price objective on the stock. Erste Group Bank assumed coverage on Eaton in a research note on Tuesday, May 5th. They set a "buy" rating on the stock. Weiss Ratings cut Eaton from a "buy (b)" rating to a "buy (b-)" rating in a research note on Monday, May 18th. Finally, Royal Bank Of Canada increased their target price on shares of Eaton from $457.00 to $484.00 and gave the stock an "outperform" rating in a report on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $420.95.

Eaton Stock Performance

Eaton stock opened at $400.87 on Monday. The company has a current ratio of 1.19, a quick ratio of 0.75 and a debt-to-equity ratio of 0.94. The firm has a 50-day moving average of $391.70 and a 200-day moving average of $362.84. The firm has a market cap of $155.66 billion, a P/E ratio of 39.19, a P/E/G ratio of 2.58 and a beta of 1.20. Eaton Corporation, PLC has a 1-year low of $311.90 and a 1-year high of $435.43.

Eaton (NYSE:ETN - Get Free Report) last posted its earnings results on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share for the quarter, topping analysts' consensus estimates of $2.73 by $0.08. The company had revenue of $7.45 billion during the quarter, compared to analyst estimates of $7.14 billion. Eaton had a net margin of 13.99% and a return on equity of 24.72%. Eaton's revenue for the quarter was up 16.8% on a year-over-year basis. During the same period in the prior year, the business posted $2.72 earnings per share. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS. Sell-side analysts expect that Eaton Corporation, PLC will post 13.32 EPS for the current year.

Eaton Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 8th were issued a dividend of $1.10 per share. The ex-dividend date was Friday, May 8th. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.1%. Eaton's dividend payout ratio is 43.01%.

Eaton Company Profile

Eaton NYSE: ETN is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company's offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.

Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.

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