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

Eaton Corporation, PLC (NYSE:ETN) was the recipient of some unusual options trading activity on Thursday. Traders acquired 40,955 call options on the stock. This represents an increase of approximately 648% compared to the typical volume of 5,476 call options.

Insider Transactions at Eaton

In other news, insider Sternadt Paulo Ruiz sold 10,707 shares of the firm’s stock in a transaction on Thursday, February 12th. The stock was sold at an average price of $390.26, for a total transaction of $4,178,513.82. Following the completion of the transaction, the insider directly owned 27,729 shares in the company, valued at $10,821,519.54. This trade represents a 27.86% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.30% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. Hilton Head Capital Partners LLC acquired a new position in shares of Eaton during the fourth quarter valued at $26,000. Sfam LLC bought a new position in Eaton in the 4th quarter valued at about $27,000. Eagle Bay Advisors LLC acquired a new position in Eaton during the 4th quarter valued at about $29,000. WFA of San Diego LLC acquired a new position in Eaton during the 2nd quarter valued at about $36,000. Finally, Imprint Wealth LLC bought a new stake in shares of Eaton during the 3rd quarter worth about $39,000. Institutional investors own 82.97% of the company’s stock.

Analyst Ratings Changes

A number of brokerages have issued reports on ETN. Barclays cut their price target on shares of Eaton from $362.00 to $350.00 and set an “equal weight” rating on the stock in a research note on Wednesday, January 7th. Citigroup reduced their target price on shares of Eaton from $442.00 to $435.00 and set a “buy” rating on the stock in a report on Monday, January 12th. Royal Bank Of Canada reissued an “outperform” rating and set a $407.00 target price on shares of Eaton in a research report on Wednesday, February 4th. Wells Fargo & Company upped their price objective on shares of Eaton from $340.00 to $370.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Finally, HSBC upgraded shares of Eaton from a “hold” rating to a “buy” rating and set a $400.00 target price on the stock in a research report on Friday, January 16th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $389.89.

Eaton Stock Performance

Shares of ETN stock traded down $5.84 during trading hours on Thursday, reaching $367.69. The stock had a trading volume of 764,923 shares, compared to its average volume of 3,028,203. The firm has a market capitalization of $142.81 billion, a PE ratio of 35.11, a price-to-earnings-growth ratio of 2.58 and a beta of 1.20. The firm has a 50-day simple moving average of $346.46 and a 200-day simple moving average of $354.68. Eaton has a twelve month low of $231.85 and a twelve month high of $408.45. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.32 and a quick ratio of 0.81.

Eaton (NYSE:ETN) last announced its quarterly earnings results on Tuesday, February 3rd. The industrial products company reported $3.33 EPS for the quarter, meeting the consensus estimate of $3.33. The company had revenue of $7.06 billion for the quarter, compared to analyst estimates of $7.15 billion. Eaton had a net margin of 14.89% and a return on equity of 25.00%. Eaton’s revenue was up 13.1% compared to the same quarter last year. During the same quarter last year, the business earned $2.83 earnings per share. Eaton has set its Q1 2026 guidance at 2.650-2.850 EPS and its FY 2026 guidance at 13.000-13.500 EPS. As a group, equities analysts forecast that Eaton will post 12.02 earnings per share for the current year.

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.