Eaton (NYSE:ETN) Trading 4.1% Higher – Time to Buy?

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

Analyst Ratings Changes

Several research firms recently issued reports on ETN. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Eaton in a report on Monday, August 3rd. Weiss Ratings raised shares of Eaton from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, August 28th. Evercore upgraded shares of Eaton from an “in-line” rating to an “outperform” rating and set a $502.00 price target for the company in a report on Monday, August 3rd. Wall Street Zen downgraded Eaton from a “buy” rating to a “hold” rating in a research report on Sunday, August 16th. Finally, Royal Bank Of Canada lifted their price objective on Eaton from $484.00 to $512.00 and gave the stock an “outperform” rating in a research note on Monday, August 3rd. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Buy” and an average target price of $454.18.

Eaton Price Performance

The firm has a market cap of $165.41 billion, a P/E ratio of 43.32, a price-to-earnings-growth ratio of 2.69 and a beta of 1.17. The stock’s 50-day moving average is $416.22 and its 200-day moving average is $399.40. The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.91.

Eaton (NYSE:ETN) last posted its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share (EPS) for the quarter, topping the consensus estimate 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 analyst estimates of $8.16 billion. During the same period last year, the business posted $2.95 EPS. The business’s quarterly revenue was up 21.4% on a year-over-year basis. 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, equities analysts anticipate that Eaton Corporation, PLC will post 13.56 EPS for the current fiscal year.

Eaton Announces Dividend

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

Insider Activity at Eaton

In other Eaton news, insider Heath Monesmith sold 18,036 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $458.04, for a total value of $8,261,209.44. Following the completion of the transaction, the insider 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 transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Adam Wadecki sold 525 shares of the firm’s stock in a transaction that occurred 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 owned 1,054 shares of the company’s stock, valued at $464,329.16. This represents a 33.25% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Eaton

Several institutional investors and hedge funds have recently bought and sold shares of ETN. Brighton Jones LLC raised its position in Eaton by 1.4% in the fourth quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company’s stock worth $1,109,000 after purchasing an additional 45 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in Eaton by 17.5% during the fourth quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company’s stock valued at $303,000 after purchasing an additional 136 shares in the last quarter. Empowered Funds LLC grew its stake in shares of Eaton by 5.6% in the 1st quarter. Empowered Funds LLC now owns 9,402 shares of the industrial products company’s stock valued at $2,556,000 after purchasing an additional 496 shares during the period. Vista Capital Partners Inc. bought a new stake in shares of Eaton in the 2nd quarter valued at approximately $259,000. Finally, Tandem Wealth Advisors LLC raised its holdings in shares of Eaton by 70.1% in the 2nd quarter. Tandem Wealth Advisors LLC now owns 2,216 shares of the industrial products company’s stock worth $791,000 after buying an additional 913 shares in the last quarter. Institutional investors own 82.97% of the company’s stock.

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.