Eaton (NYSE:ETN) Shares Down 7.5% – Here’s Why

Eaton Corporation, PLC (NYSE:ETN) shares fell 7.5% during mid-day trading on Tuesday . The stock traded as low as $352.10 and last traded at $357.4660. 2,162,842 shares were traded during mid-day trading, a decline of 23% from the average session volume of 2,801,958 shares. The stock had previously closed at $386.57.

Wall Street Analysts Forecast Growth

A number of research firms have recently commented on ETN. JPMorgan Chase & Co. increased their target price on shares of Eaton from $380.00 to $429.00 and gave the stock an “overweight” rating in a report on Wednesday, October 15th. The Goldman Sachs Group increased their price target on Eaton from $345.00 to $382.00 and gave the stock a “buy” rating in a report on Tuesday, July 8th. Wells Fargo & Company increased their price target on Eaton from $375.00 to $395.00 and gave the stock an “equal weight” rating in a report on Monday, October 6th. Weiss Ratings restated a “buy (b-)” rating on shares of Eaton in a research note on Wednesday, October 8th. Finally, Raymond James Financial boosted their price target on shares of Eaton from $380.00 to $415.00 and gave the company an “outperform” rating in a research note on Thursday, August 7th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $398.45.

Eaton Price Performance

The business’s 50-day simple moving average is $368.29 and its two-hundred day simple moving average is $349.00. The company has a quick ratio of 0.76, a current ratio of 1.24 and a debt-to-equity ratio of 0.47. The stock has a market cap of $147.18 billion, a P/E ratio of 38.02, a price-to-earnings-growth ratio of 2.77 and a beta of 1.18.

Eaton (NYSE:ETN) last released its quarterly earnings data on Tuesday, November 4th. The industrial products company reported $3.07 EPS for the quarter, beating analysts’ consensus estimates of $3.06 by $0.01. Eaton had a net margin of 15.11% and a return on equity of 23.91%. The company had revenue of $6.99 billion during the quarter, compared to analyst estimates of $7.09 billion. Eaton has set its Q4 2025 guidance at 3.230-3.430 EPS. FY 2025 guidance at 11.970-12.170 EPS. Sell-side analysts expect that Eaton Corporation, PLC will post 12.02 EPS for the current year.

Eaton Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 21st. Shareholders of record on Thursday, November 6th will be paid a dividend of $1.04 per share. The ex-dividend date of this dividend is Thursday, November 6th. This represents a $4.16 annualized dividend and a yield of 1.1%. Eaton’s payout ratio is 41.85%.

Insiders Place Their Bets

In related news, insider Olivier Leonetti sold 16,018 shares of the business’s stock in a transaction that occurred on Thursday, August 7th. The stock was sold at an average price of $358.39, for a total value of $5,740,691.02. Following the completion of the sale, the insider owned 630 shares in the company, valued at $225,785.70. The trade was a 96.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Eaton

Hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC raised its stake in shares of Eaton by 1.4% during the fourth quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company’s stock valued at $1,109,000 after acquiring an additional 45 shares during the last quarter. Revolve Wealth Partners LLC raised its holdings in Eaton by 17.5% in the 4th quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company’s stock worth $303,000 after purchasing an additional 136 shares in the last quarter. Cloud Capital Management LLC bought a new position in Eaton in the first quarter worth about $47,000. Envestnet Asset Management Inc. raised its stake in Eaton by 5.7% in the first quarter. Envestnet Asset Management Inc. now owns 813,626 shares of the industrial products company’s stock worth $221,168,000 after buying an additional 43,719 shares in the last quarter. Finally, Capital Advisors Inc. OK raised its position in shares of Eaton by 1.8% in the 1st quarter. Capital Advisors Inc. OK now owns 72,260 shares of the industrial products company’s stock worth $19,642,000 after acquiring an additional 1,295 shares in the last quarter. Institutional investors own 82.97% of the company’s stock.

Eaton Company Profile

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.