Eaton (NYSE:ETN) Hits New 12-Month High After Earnings Beat

Eaton Co. plc (NYSE:ETN)’s stock price hit a new 52-week high on Tuesday following a stronger than expected earnings report. The company traded as high as $333.06 and last traded at $323.73, with a volume of 878417 shares trading hands. The stock had previously closed at $326.51.

The industrial products company reported $2.40 earnings per share for the quarter, topping the consensus estimate of $2.28 by $0.12. Eaton had a net margin of 14.38% and a return on equity of 20.69%. The company had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.91 billion. During the same period in the prior year, the company posted $1.88 earnings per share. Eaton’s revenue for the quarter was up 8.4% compared to the same quarter last year.

Eaton Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 24th. Stockholders of record on Monday, May 6th will be given a dividend of $0.94 per share. This represents a $3.76 annualized dividend and a dividend yield of 1.21%. The ex-dividend date of this dividend is Friday, May 3rd. Eaton’s dividend payout ratio (DPR) is presently 44.39%.

Analysts Set New Price Targets

ETN has been the subject of a number of research reports. Royal Bank of Canada upgraded shares of Eaton from a “sector perform” rating to an “outperform” rating and raised their price target for the stock from $286.00 to $371.00 in a report on Friday, April 5th. Barclays upgraded shares of Eaton from an “underweight” rating to an “equal weight” rating and raised their price target for the stock from $250.00 to $300.00 in a report on Tuesday, April 2nd. Mizuho restated a “buy” rating and issued a $355.00 price target (up from $340.00) on shares of Eaton in a report on Wednesday. JPMorgan Chase & Co. raised their price target on shares of Eaton from $279.00 to $325.00 and gave the stock an “overweight” rating in a report on Wednesday. Finally, Berenberg Bank raised their price target on shares of Eaton from $200.00 to $345.00 and gave the stock a “buy” rating in a report on Wednesday, March 6th. One analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have given a buy rating to the stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $302.93.

Insider Activity at Eaton

In related news, insider Heath B. Monesmith sold 13,027 shares of the firm’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $291.40, for a total transaction of $3,796,067.80. Following the transaction, the insider now directly owns 69,472 shares of the company’s stock, valued at $20,244,140.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, insider Ernest W. Marshall, Jr. sold 19,750 shares of the firm’s stock in a transaction dated Wednesday, February 7th. The shares were sold at an average price of $273.17, for a total transaction of $5,395,107.50. Following the transaction, the insider now directly owns 29,712 shares of the company’s stock, valued at $8,116,427.04. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Heath B. Monesmith sold 13,027 shares of the firm’s stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $291.40, for a total transaction of $3,796,067.80. Following the transaction, the insider now directly owns 69,472 shares in the company, valued at $20,244,140.80. The disclosure for this sale can be found here. Insiders have sold 38,969 shares of company stock valued at $10,904,774 over the last ninety days. Corporate insiders own 0.53% of the company’s stock.

Institutional Trading of Eaton

Hedge funds have recently added to or reduced their stakes in the stock. Ritholtz Wealth Management raised its position in Eaton by 5.1% in the fourth quarter. Ritholtz Wealth Management now owns 5,724 shares of the industrial products company’s stock worth $1,379,000 after acquiring an additional 277 shares during the period. Pinnbrook Capital Management LP bought a new stake in Eaton in the fourth quarter worth about $15,109,000. Pacer Advisors Inc. raised its position in Eaton by 30.5% in the fourth quarter. Pacer Advisors Inc. now owns 34,071 shares of the industrial products company’s stock worth $8,205,000 after acquiring an additional 7,964 shares during the period. Chicago Capital LLC bought a new stake in Eaton in the fourth quarter worth about $2,958,000. Finally, Neo Ivy Capital Management bought a new stake in Eaton in the third quarter worth about $479,000. Institutional investors own 82.97% of the company’s stock.

Eaton Price Performance

The stock has a market cap of $124.66 billion, a PE ratio of 36.84, a P/E/G ratio of 2.63 and a beta of 1.06. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.56 and a quick ratio of 1.02. The firm’s 50 day moving average price is $307.35 and its two-hundred day moving average price is $260.80.

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.