Eaton (ETN) Downgraded by Zacks Investment Research

Zacks Investment Research cut shares of Eaton (NYSE:ETN) from a hold rating to a sell rating in a report released on Tuesday morning.

According to Zacks, “In the last six months, Eaton’s shares have returned lower than the industry it belongs to. Eaton’s wide operation exposes it to weather calamities, natural disaster, cyber-attacks and security breaches, which could adversely impact operation and earnings. Eaton expects its fourth quarter earnings to be adversely impact as the Tax Cuts and Jobs Act was signed into a law.  Eaton’s wide market reach and varied product offerings will ensure continuous revenue generation for the company. Its restructuring activities will drive performance and help Eaton to achieve its guidance for the year. Consistent R&D investments will help it to create new products and provide better electrical solutions to its customers. The free cash flow generation capability is also helping Eaton to move ahead with its share repurchase program. The improvement in end-market conditions is boosting the order book of the company.”

Other research analysts also recently issued research reports about the stock. ValuEngine raised shares of Eaton from a hold rating to a buy rating in a research report on Friday, September 15th. Citigroup lifted their price objective on shares of Eaton from $88.00 to $90.00 and gave the company a buy rating in a research report on Friday, October 13th. Stifel Nicolaus reissued a hold rating and issued a $80.00 price objective on shares of Eaton in a research report on Monday, December 11th. Jefferies Group lifted their price objective on shares of Eaton from $70.00 to $80.00 and gave the company a hold rating in a research report on Wednesday, November 1st. Finally, Oppenheimer restated a hold rating on shares of Eaton in a research note on Tuesday, October 31st. Five equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have issued a buy rating to the company’s stock. Eaton presently has an average rating of Hold and a consensus target price of $83.43.

Shares of Eaton (ETN) traded up $0.25 on Tuesday, hitting $84.24. 2,417,481 shares of the stock were exchanged, compared to its average volume of 2,410,000. Eaton has a 52 week low of $66.98 and a 52 week high of $84.35. The company has a market cap of $37,010.00, a P/E ratio of 19.32, a PEG ratio of 1.97 and a beta of 1.38. The company has a current ratio of 1.43, a quick ratio of 1.02 and a debt-to-equity ratio of 0.44.

Eaton (NYSE:ETN) last announced its quarterly earnings data on Tuesday, October 31st. The industrial products company reported $1.25 EPS for the quarter, meeting analysts’ consensus estimates of $1.25. Eaton had a net margin of 14.21% and a return on equity of 12.89%. The company had revenue of $5.21 billion during the quarter, compared to the consensus estimate of $5.12 billion. During the same quarter last year, the firm posted $1.16 EPS. The company’s quarterly revenue was up 6.4% on a year-over-year basis. analysts expect that Eaton will post 4.6 earnings per share for the current year.

In other news, insider Nandakumar Cheruvatath sold 10,000 shares of the firm’s stock in a transaction dated Friday, December 8th. The shares were sold at an average price of $77.50, for a total transaction of $775,000.00. Following the completion of the sale, the insider now owns 16,571 shares in the company, valued at approximately $1,284,252.50. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Revathi Advaithi sold 23,743 shares of the firm’s stock in a transaction dated Thursday, November 9th. The stock was sold at an average price of $78.36, for a total transaction of $1,860,501.48. Following the sale, the insider now owns 31,028 shares of the company’s stock, valued at approximately $2,431,354.08. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 58,938 shares of company stock valued at $4,597,529. 0.80% of the stock is currently owned by corporate insiders.

A number of institutional investors have recently modified their holdings of the business. Rhumbline Advisers raised its stake in Eaton by 0.4% in the 3rd quarter. Rhumbline Advisers now owns 779,539 shares of the industrial products company’s stock worth $59,861,000 after purchasing an additional 3,338 shares in the last quarter. PGGM Investments raised its stake in Eaton by 142.1% in the 3rd quarter. PGGM Investments now owns 703,839 shares of the industrial products company’s stock worth $54,048,000 after purchasing an additional 413,096 shares in the last quarter. Nationwide Fund Advisors raised its stake in Eaton by 3.0% in the 3rd quarter. Nationwide Fund Advisors now owns 466,338 shares of the industrial products company’s stock worth $35,810,000 after purchasing an additional 13,419 shares in the last quarter. Canada Pension Plan Investment Board raised its stake in Eaton by 91.8% in the 3rd quarter. Canada Pension Plan Investment Board now owns 375,869 shares of the industrial products company’s stock worth $28,863,000 after purchasing an additional 179,900 shares in the last quarter. Finally, Aperio Group LLC raised its stake in Eaton by 3.9% in the 3rd quarter. Aperio Group LLC now owns 331,053 shares of the industrial products company’s stock worth $25,422,000 after purchasing an additional 12,326 shares in the last quarter. Institutional investors and hedge funds own 76.52% of the company’s stock.

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About Eaton

Eaton Corporation (Eaton) is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.

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