Eaton (NYSE:ETN) Trading 3.4% Higher – Should You Buy?

Eaton Corporation, PLC (NYSE:ETN)’s stock price shot up 3.4% during mid-day trading on Monday . The company traded as high as $436.74 and last traded at $436.14. Approximately 2,563,725 shares traded hands during mid-day trading, a decline of 7% from the average daily volume of 2,759,787 shares. The stock had previously closed at $421.77.

Analyst Ratings Changes

A number of research firms have issued reports on ETN. Jefferies Financial Group began coverage on Eaton in a research report on Monday, March 16th. They issued a “buy” rating and a $430.00 price target on the stock. JPMorgan Chase & Co. upped their target price on shares of Eaton from $406.00 to $445.00 and gave the stock an “overweight” rating in a research note on Wednesday, May 6th. Morgan Stanley reaffirmed an “overweight” rating and issued a $500.00 target price on shares of Eaton in a report on Sunday, May 10th. Barclays boosted their price target on shares of Eaton from $340.00 to $392.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Finally, Wells Fargo & Company raised their price target on Eaton from $350.00 to $425.00 and gave the company an “equal weight” rating in a research note on Wednesday, May 6th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, Eaton has an average rating of “Moderate Buy” and an average price target of $420.95.

Eaton Price Performance

The stock has a market capitalization of $169.35 billion, a price-to-earnings ratio of 42.63, a price-to-earnings-growth ratio of 2.71 and a beta of 1.20. 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 company’s 50 day moving average is $404.59 and its 200 day moving average is $369.35.

Eaton (NYSE:ETN) last issued its quarterly earnings data on Tuesday, May 5th. The industrial products company reported $2.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.73 by $0.08. Eaton had a return on equity of 24.72% and a net margin of 13.99%.The company had revenue of $7.45 billion for the quarter, compared to analyst estimates of $7.14 billion. During the same quarter last year, the company posted $2.72 earnings per share. The business’s quarterly revenue 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. Research analysts anticipate that Eaton Corporation, PLC will post 13.32 EPS for the current fiscal year.

Eaton Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 29th. Shareholders of record on Friday, May 8th were paid a $1.10 dividend. The ex-dividend date was Friday, May 8th. This represents a $4.40 dividend on an annualized basis and a yield of 1.0%. Eaton’s payout ratio is currently 43.01%.

Insiders Place Their Bets

In related news, insider Heath B. Monesmith sold 18,367 shares of the 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 completion of the sale, the insider owned 49,822 shares in the company, valued at $20,382,678.42. This represents a 26.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Peter Denk sold 2,000 shares of the firm’s stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $417.94, for a total transaction of $835,880.00. Following the transaction, the insider directly owned 7,102 shares in the company, valued at $2,968,209.88. The trade was a 21.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 21,028 shares of company stock valued at $8,614,793. 0.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Eaton

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. North Star Investment Management Corp. raised its stake in Eaton by 0.3% during the 1st quarter. North Star Investment Management Corp. now owns 8,101 shares of the industrial products company’s stock valued at $2,897,000 after acquiring an additional 28 shares during the last quarter. Bogart Wealth LLC increased its holdings in shares of Eaton by 1.3% in the first quarter. Bogart Wealth LLC now owns 2,184 shares of the industrial products company’s stock valued at $781,000 after purchasing an additional 29 shares during the period. Pring Turner Capital Group Inc. raised its stake in shares of Eaton by 0.3% during the fourth quarter. Pring Turner Capital Group Inc. now owns 10,528 shares of the industrial products company’s stock worth $3,353,000 after purchasing an additional 30 shares during the last quarter. Ellevest Inc. lifted its holdings in shares of Eaton by 2.5% during the fourth quarter. Ellevest Inc. now owns 1,281 shares of the industrial products company’s stock worth $408,000 after purchasing an additional 31 shares during the period. Finally, Douglass Winthrop Advisors LLC lifted its holdings in shares of Eaton by 1.2% during the fourth quarter. Douglass Winthrop Advisors LLC now owns 2,613 shares of the industrial products company’s stock worth $832,000 after purchasing an additional 31 shares during the period. 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.