Stock Traders Purchase Large Volume of Eaton Put Options (NYSE:ETN)

Eaton Corporation, PLC (NYSE:ETN) was the target of some unusual options trading activity on Tuesday. Investors acquired 6,869 put options on the company. This represents an increase of 56% compared to the average daily volume of 4,415 put options.

Eaton Stock Down 1.7%

Shares of ETN traded down $5.83 during midday trading on Tuesday, hitting $327.38. The company had a trading volume of 1,196,057 shares, compared to its average volume of 2,827,327. The company’s 50-day simple moving average is $359.87 and its 200-day simple moving average is $357.88. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.79 and a current ratio of 1.28. Eaton has a 1 year low of $231.85 and a 1 year high of $399.56. The firm has a market capitalization of $127.16 billion, a P/E ratio of 32.74, a P/E/G ratio of 2.40 and a beta of 1.17.

Eaton (NYSE:ETN) last issued its quarterly earnings results on Tuesday, November 4th. The industrial products company reported $3.07 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.06 by $0.01. Eaton had a net margin of 14.74% and a return on equity of 24.36%. The company had revenue of $6.99 billion during the quarter, compared to the consensus estimate of $7.09 billion. Eaton has set its Q4 2025 guidance at 3.230-3.430 EPS and its FY 2025 guidance at 11.970-12.170 EPS. As a group, sell-side analysts expect that Eaton will post 12.02 EPS for the current year.

Eaton Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, November 21st. Investors of record on Thursday, November 6th were paid a dividend of $1.04 per share. The ex-dividend date was Thursday, November 6th. This represents a $4.16 dividend on an annualized basis and a dividend yield of 1.3%. Eaton’s payout ratio is presently 41.60%.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the company. Citigroup upped their price target on Eaton from $438.00 to $442.00 and gave the stock a “buy” rating in a research note on Thursday, October 9th. Melius raised Eaton from a “hold” rating to a “buy” rating and set a $495.00 target price on the stock in a research note on Monday, September 15th. Rothschild Redb raised Eaton to a “hold” rating in a research report on Wednesday, August 20th. Barclays increased their price target on shares of Eaton from $344.00 to $362.00 and gave the stock an “equal weight” rating in a research report on Wednesday, November 5th. Finally, Wolfe Research raised shares of Eaton from a “peer perform” rating to an “outperform” rating and set a $413.00 price objective for the company in a research note on Tuesday, December 9th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $402.05.

Insider Activity

In related news, Director Gerald Johnson acquired 200 shares of the firm’s stock in a transaction dated Tuesday, November 18th. The shares were purchased at an average cost of $339.89 per share, for a total transaction of $67,978.00. Following the acquisition, the director owned 400 shares in the company, valued at $135,956. The trade was a 100.00% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Over the last quarter, insiders have purchased 500 shares of company stock valued at $174,389. 0.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Eaton

Large investors have recently bought and sold shares of the business. WFA of San Diego LLC purchased a new stake in Eaton during the 2nd quarter worth about $36,000. Imprint Wealth LLC acquired a new stake in shares of Eaton during the 3rd quarter worth about $39,000. Redmont Wealth Advisors LLC purchased a new stake in Eaton during the third quarter worth approximately $40,000. SOA Wealth Advisors LLC. boosted its holdings in Eaton by 36.0% in the second quarter. SOA Wealth Advisors LLC. now owns 136 shares of the industrial products company’s stock valued at $49,000 after purchasing an additional 36 shares in the last quarter. Finally, Saudi Central Bank purchased a new position in Eaton in the first quarter valued at approximately $42,000. Hedge funds and other institutional investors own 82.97% of the company’s stock.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company’s Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.