Eaton (NYSE:ETN) Shares Down 5.3% – Here’s Why

Eaton Corporation, PLC (NYSE:ETN) was down 5.3% during mid-day trading on Friday . The company traded as low as $393.17 and last traded at $396.3450. Approximately 2,526,813 shares were traded during trading, a decline of 9% from the average daily volume of 2,779,667 shares. The stock had previously closed at $418.61.

Analysts Set New Price Targets

A number of brokerages have weighed in on ETN. Wells Fargo & Company lifted their price target on shares of Eaton from $350.00 to $425.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their price target on shares of Eaton from $406.00 to $445.00 and gave the company an “overweight” rating in a report on Wednesday, May 6th. Morgan Stanley reiterated an “overweight” rating and issued a $500.00 price target on shares of Eaton in a report on Sunday, May 10th. Royal Bank Of Canada raised their target price on shares of Eaton from $457.00 to $484.00 and gave the company an “outperform” rating in a research note on Wednesday, May 6th. Finally, Citigroup raised their target price on shares of Eaton from $464.00 to $471.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, Eaton has a consensus rating of “Moderate Buy” and a consensus price target of $420.95.

Eaton Stock Performance

The stock’s 50 day moving average price is $395.88 and its 200 day moving average price is $364.37. 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 market cap of $153.90 billion, a PE ratio of 38.74, a P/E/G ratio of 2.71 and a beta of 1.19.

Eaton (NYSE:ETN) last issued its earnings results on Tuesday, May 5th. The industrial products company reported $2.81 EPS for the quarter, beating analysts’ consensus estimates of $2.73 by $0.08. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The business had revenue of $7.45 billion for the quarter, compared to the consensus estimate of $7.14 billion. During the same quarter last year, the firm posted $2.72 EPS. The business’s revenue for the quarter was up 16.8% compared to the same quarter last year. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS. As a group, equities analysts forecast that Eaton Corporation, PLC will post 13.32 earnings per share for the current fiscal year.

Eaton Announces Dividend

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

Insider Activity

In related news, insider Heath B. Monesmith sold 18,367 shares of Eaton stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $409.11, for a total transaction of $7,514,123.37. Following the sale, the insider owned 49,822 shares of the company’s stock, valued at $20,382,678.42. The trade was a 26.94% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Dorothy C. Thompson sold 167 shares of Eaton stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $385.00, for a total transaction of $64,295.00. Following the sale, the director directly owned 1,096 shares in the company, valued at $421,960. This trade represents a 13.22% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,028 shares of company stock worth $8,614,793 over the last three months. 0.10% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Eaton

Several hedge funds and other institutional investors have recently added to or reduced their stakes in ETN. Fayez Sarofim & Co increased its position in shares of Eaton by 3.4% in the 3rd quarter. Fayez Sarofim & Co now owns 1,256,177 shares of the industrial products company’s stock worth $474,444,000 after purchasing an additional 40,792 shares during the last quarter. Williams Jones Wealth Management LLC. increased its position in shares of Eaton by 3.3% in the 3rd quarter. Williams Jones Wealth Management LLC. now owns 515,587 shares of the industrial products company’s stock worth $192,958,000 after purchasing an additional 16,422 shares during the last quarter. SG Americas Securities LLC increased its position in shares of Eaton by 438.9% in the 4th quarter. SG Americas Securities LLC now owns 364,877 shares of the industrial products company’s stock worth $116,217,000 after purchasing an additional 297,166 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd increased its position 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 purchasing an additional 178,000 shares during the last quarter. Finally, Silvercrest Asset Management Group LLC increased its position in shares of Eaton by 23.1% in the 4th quarter. Silvercrest Asset Management Group LLC now owns 310,859 shares of the industrial products company’s stock worth $99,012,000 after purchasing an additional 58,281 shares during the last quarter. Hedge funds and other 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.