Eaton (NYSE:ETN) Issues Earnings Results

Eaton (NYSE:ETN) issued its earnings results on Thursday. The industrial products company reported $3.23 earnings per share for the quarter, FiscalAI reports. Eaton had a return on equity of 25.00% and a net margin of 14.89%.

Eaton Stock Performance

NYSE ETN traded down $1.21 during trading hours on Friday, reaching $373.38. The company’s stock had a trading volume of 381,126 shares, compared to its average volume of 2,997,683. The company has a current ratio of 1.32, a quick ratio of 0.81 and a debt-to-equity ratio of 0.45. The business has a 50-day simple moving average of $347.63 and a 200 day simple moving average of $354.81. The stock has a market cap of $145.02 billion, a PE ratio of 35.70, a PEG ratio of 2.58 and a beta of 1.20. Eaton has a 52 week low of $231.85 and a 52 week high of $408.45.

Eaton Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 27th. Shareholders of record on Tuesday, March 10th will be issued a $1.10 dividend. The ex-dividend date is Tuesday, March 10th. This represents a $4.40 dividend on an annualized basis and a yield of 1.2%. This is an increase from Eaton’s previous quarterly dividend of $1.04. Eaton’s dividend payout ratio (DPR) is presently 39.77%.

Key Eaton News

Here are the key news stories impacting Eaton this week:

• Positive Sentiment: Eaton’s board raised the quarterly dividend to $1.10 per share (a ~6% increase), payable March 27 with an ex-dividend date of March 10 — a sign of cash-flow confidence and shareholder return commitment. Eaton increases quarterly dividend to $1.10 per share
• Positive Sentiment: Unusual options activity: investors bought roughly 40,955 call options (≈648% above typical call volume), indicating bullish speculative interest or hedged positioning heading into the earnings/dividend window.
• Neutral Sentiment: Quarterly results released: Eaton reported $3.23 EPS for the quarter with a 25% ROE and a 14.9% net margin. The company provided a conference call/press materials for investors to parse guidance and segment performance. Earnings release and call
• Neutral Sentiment: Industry outlook: a new power distribution unit market report highlights growing demand for intelligent PDUs and edge data center investment, naming Eaton among leading suppliers — long-term demand tailwind but not an immediate catalyst. Power Distribution Unit Industry Report
• Neutral Sentiment: Media attention: Eaton has been attracting investor attention on several analyst/news platforms; useful for flows but ambiguous on direction. Eaton attracting investor attention
• Negative Sentiment: Relative performance concerns: coverage notes Eaton has recently underperformed some industrial peers, tempering enthusiasm and possibly prompting profit-taking by investors. Performance vs. peers

Analysts Set New Price Targets

ETN has been the topic of a number of recent analyst reports. HSBC upgraded shares of Eaton from a “hold” rating to a “buy” rating and set a $400.00 target price on the stock in a research note on Friday, January 16th. Barclays decreased their price target on shares of Eaton from $362.00 to $350.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 7th. Weiss Ratings reissued a “buy (b-)” rating on shares of Eaton in a research note on Wednesday, January 21st. Citigroup decreased their price objective on Eaton from $442.00 to $435.00 and set a “buy” rating for the company in a research note on Monday, January 12th. Finally, Wolfe Research upgraded shares of Eaton from a “peer perform” rating to an “outperform” rating and set a $413.00 target price on the stock in a research note on Tuesday, December 9th. Two analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, Eaton has a consensus rating of “Moderate Buy” and an average target price of $389.89.

Insider Buying and Selling at Eaton

In related news, insider Sternadt Paulo Ruiz sold 10,707 shares of Eaton stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $390.26, for a total value of $4,178,513.82. Following the transaction, the insider directly owned 27,729 shares of the company’s stock, valued at $10,821,519.54. This trade represents a 27.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Company insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Eaton

A number of hedge funds have recently bought and sold shares of ETN. Virtu Financial LLC bought a new stake in shares of Eaton during the 4th quarter valued at about $6,037,000. Sunbelt Securities Inc. grew its position in Eaton by 4.0% in the 4th quarter. Sunbelt Securities Inc. now owns 3,375 shares of the industrial products company’s stock worth $1,075,000 after purchasing an additional 130 shares in the last quarter. McLaughlin Asset Management Inc. bought a new position in shares of Eaton during the fourth quarter valued at about $562,000. CrossGen Wealth LLC purchased a new stake in Eaton in the fourth quarter worth about $2,980,000. Finally, Wealth Intelligence LLC bought a new position in shares of Eaton in the 4th quarter worth approximately $2,740,000. Institutional investors own 82.97% of the company’s stock.

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.