Eaton (NYSE:ETN) Trading Up 1.9% – Time to Buy?

Shares of Eaton Corporation, PLC (NYSE:ETN) were up 1.9% on Monday . The stock traded as high as $406.51 and last traded at $403.3770. Approximately 2,001,063 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 2,772,622 shares. The stock had previously closed at $395.94.

Analyst Ratings Changes

ETN has been the topic of a number of analyst reports. Wells Fargo & Company lifted 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. Erste Group Bank began coverage on Eaton in a research note on Tuesday, May 5th. They issued a “buy” rating on the stock. Royal Bank Of Canada boosted their price target on Eaton from $457.00 to $484.00 and gave the stock an “outperform” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. boosted their price target on Eaton from $406.00 to $445.00 and gave the stock an “overweight” rating in a report on Wednesday, May 6th. Finally, Evercore set a $453.00 price target on Eaton in a report on Monday, May 11th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four 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 $420.95.

Eaton Price Performance

The stock has a market capitalization of $145.96 billion, a price-to-earnings ratio of 36.74, a price-to-earnings-growth ratio of 2.59 and a beta of 1.19. The company has a 50 day moving average of $398.11 and a 200 day moving average of $365.60. The company has a quick ratio of 0.75, a current ratio of 1.19 and a debt-to-equity ratio of 0.94.

Eaton (NYSE:ETN) last announced its quarterly earnings results on Tuesday, May 5th. The industrial products company reported $2.81 EPS for the quarter, topping the consensus estimate of $2.73 by $0.08. The company had revenue of $7.45 billion during the quarter, compared to analyst estimates of $7.14 billion. Eaton had a return on equity of 24.72% and a net margin of 13.99%.The firm’s revenue was up 16.8% on a year-over-year basis. During the same period in the prior year, the firm posted $2.72 earnings per share. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS. As a group, equities research analysts forecast that Eaton Corporation, PLC will post 13.32 EPS for the current fiscal year.

Eaton Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 8th were given a $1.10 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $4.40 annualized dividend and a dividend yield of 1.2%. Eaton’s dividend payout ratio is presently 43.01%.

Insider Buying and Selling

In related news, insider Peter Denk sold 2,000 shares of the stock in a transaction dated Wednesday, May 6th. The stock was sold at an average price of $417.94, for a total value of $835,880.00. Following the completion of the transaction, the insider owned 7,102 shares of the company’s stock, valued at approximately $2,968,209.88. This represents a 21.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Dorothy C. Thompson sold 167 shares of the stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $385.00, for a total value of $64,295.00. Following the completion of the transaction, the director directly owned 1,096 shares of the company’s stock, valued at $421,960. This represents a 13.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 21,028 shares of company stock valued at $8,614,793. 0.10% of the stock is owned by insiders.

Institutional Trading of Eaton

Several institutional investors and hedge funds have recently bought and sold shares of the company. Hilton Head Capital Partners LLC acquired a new stake in Eaton in the 4th quarter valued at approximately $26,000. Sfam LLC acquired a new stake in Eaton in the 4th quarter valued at approximately $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new stake in Eaton in the 4th quarter valued at approximately $28,000. Eagle Bay Advisors LLC acquired a new stake in Eaton in the 4th quarter valued at approximately $29,000. Finally, Boreal Capital Management LLC acquired a new stake in Eaton in the 1st quarter valued at approximately $33,000. Institutional investors and hedge funds 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.