Eaton (NYSE:ETN) Trading 4.1% Higher – Still a Buy?

Eaton Corporation, PLC (NYSE:ETN) shot up 4.1% during trading on Friday . The stock traded as high as $427.14 and last traded at $425.8840. 1,537,497 shares traded hands during mid-day trading, a decline of 40% from the average daily volume of 2,557,188 shares. The stock had previously closed at $409.15.

Wall Street Analyst Weigh In

Several equities analysts have recently weighed in on ETN shares. Royal Bank Of Canada raised their price target on shares of Eaton from $484.00 to $512.00 and gave the stock an “outperform” rating in a research note on Monday, August 3rd. Citigroup raised their target price on shares of Eaton from $471.00 to $485.00 and gave the company a “buy” rating in a research report on Monday, August 3rd. Sanford C. Bernstein reissued an “outperform” rating on shares of Eaton in a research report on Monday, August 3rd. UBS Group upgraded Eaton from a “neutral” rating to a “buy” rating and raised their price objective for the company from $450.00 to $515.00 in a report on Monday. Finally, Wall Street Zen cut Eaton from a “buy” rating to a “hold” rating in a research report on Sunday, August 16th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $454.18.

Eaton Trading Up 4.1%

The business’s 50-day moving average price is $415.68 and its 200 day moving average price is $399.22. The company has a market cap of $165.41 billion, a P/E ratio of 43.32, a P/E/G ratio of 2.62 and a beta of 1.17. The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.79 and a current ratio of 1.24.

Eaton (NYSE:ETN) last issued its earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates 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 for the quarter, compared to analysts’ expectations of $8.16 billion. During the same period in the prior year, the firm earned $2.95 EPS. Eaton’s quarterly revenue was up 21.4% compared to the same quarter last year. 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, analysts expect that Eaton Corporation, PLC will post 13.56 earnings per share for the current year.

Eaton Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 7th were given a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, August 7th. Eaton’s dividend payout ratio (DPR) is presently 44.76%.

Insider Buying and Selling

In related news, insider Adam Wadecki sold 525 shares of the 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 sale, the insider owned 1,054 shares in the company, valued at approximately $464,329.16. This represents a 33.25% 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, insider Heath Monesmith sold 18,036 shares of the firm’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $458.04, for a total value of $8,261,209.44. Following the sale, the insider directly owned 50,368 shares of the company’s stock, valued at $23,070,558.72. This represents a 26.37% decrease in their position. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Hilton Head Capital Partners LLC acquired a new stake in Eaton during the fourth quarter worth approximately $26,000. Manning & Napier Advisors LLC acquired a new position in shares of Eaton in the second quarter valued at approximately $27,000. Sfam LLC bought a new position in shares of Eaton during the fourth quarter worth approximately $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Eaton during the 4th quarter worth approximately $28,000. Finally, Boreal Capital Management LLC acquired a new position in Eaton in the 1st quarter valued at $33,000. 82.97% of the stock is owned by institutional investors.

Eaton Company Profile

Eaton plc is a power management company that helps businesses, utilities, data centers, industrial facilities and other customers manage electrical, hydraulic and mechanical power more safely and efficiently. Its products and systems support power distribution, circuit protection, power quality, backup power, industrial automation and energy management.

The company also supplies aerospace systems, including hydraulic, fuel, motion-control and air-management equipment, as well as components and systems for commercial and military aircraft.