Eaton (NYSE:ETN) Trading 3.7% Higher – Should You Buy?

Eaton Corporation, PLC (NYSE:ETN) shares traded up 3.7% during mid-day trading on Monday . The stock traded as high as $420.25 and last traded at $413.31. Approximately 1,751,909 shares were traded during trading, a decline of 36% from the average daily volume of 2,749,208 shares. The stock had previously closed at $398.52.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ETN. Evercore set a $453.00 target price on shares of Eaton in a research note on Monday, May 11th. Weiss Ratings downgraded Eaton from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, May 18th. Morgan Stanley reissued an “overweight” rating and issued a $500.00 price objective on shares of Eaton in a research report on Sunday, May 10th. Barclays boosted their price objective on Eaton from $340.00 to $392.00 and gave the stock an “equal weight” rating in a research note on Wednesday, May 6th. Finally, Citigroup increased their target price on Eaton from $464.00 to $471.00 and gave the company a “buy” rating in a research note on Wednesday, May 6th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $420.95.

Eaton Stock Up 3.7%

The firm’s 50 day moving average price is $406.20 and its two-hundred day moving average price is $374.39. The firm has a market capitalization of $160.49 billion, a PE ratio of 40.40, a P/E/G ratio of 2.56 and a beta of 1.18. 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 released its quarterly earnings results 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. The firm had revenue of $7.45 billion for the quarter, compared to the consensus estimate of $7.14 billion. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The firm’s quarterly revenue was up 16.8% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.72 EPS. 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, research analysts forecast that Eaton Corporation, PLC will post 13.33 EPS for the current fiscal year.

Eaton Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, May 29th. Investors 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 annualized dividend and a dividend yield of 1.1%. Eaton’s payout ratio is 43.01%.

Insider Transactions at Eaton

In other Eaton news, insider Antonio Galvao sold 494 shares of the company’s stock in a transaction that occurred on Wednesday, May 13th. The stock was sold at an average price of $405.86, for a total value of $200,494.84. Following the transaction, the insider directly owned 9,175 shares of the company’s stock, valued at $3,723,765.50. This represents a 5.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Dorothy C. Thompson sold 167 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $385.00, for a total transaction of $64,295.00. Following the transaction, the director directly owned 1,096 shares of the company’s stock, valued at approximately $421,960. This represents a 13.22% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 21,028 shares of company stock valued at $8,614,793 in the last three months. 0.10% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Miller Global Investments LLC boosted its holdings in Eaton by 24.9% in the second quarter. Miller Global Investments LLC now owns 216 shares of the industrial products company’s stock worth $92,000 after purchasing an additional 43 shares during the period. First Financial Bank Trust Division raised its holdings in shares of Eaton by 2.0% during the second quarter. First Financial Bank Trust Division now owns 35,696 shares of the industrial products company’s stock valued at $15,211,000 after buying an additional 695 shares during the last quarter. Farmers National Bank boosted its position in Eaton by 78.4% during the 1st quarter. Farmers National Bank now owns 12,360 shares of the industrial products company’s stock worth $4,421,000 after acquiring an additional 5,433 shares during the period. Evansbrook LLC bought a new position in Eaton in the 1st quarter valued at about $778,000. Finally, Parallel Advisors LLC boosted its holdings in shares of Eaton by 5.3% in the first quarter. Parallel Advisors LLC now owns 9,156 shares of the industrial products company’s stock valued at $3,275,000 after acquiring an additional 459 shares in the last quarter. Institutional investors and hedge funds own 82.97% of the company’s stock.

About Eaton

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.