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

Eaton Corporation, PLC (NYSE:ETN)’s share price rose 1.9% during mid-day trading on Monday . The stock traded as high as $406.51 and last traded at $403.3770. Approximately 2,001,063 shares traded hands during 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

A number of brokerages recently issued reports on ETN. KeyCorp raised their target price on shares of Eaton from $420.00 to $480.00 and gave the stock an “overweight” rating in a research report on Wednesday, May 6th. BMO Capital Markets assumed coverage on Eaton in a report on Friday, March 27th. They set an “outperform” rating and a $428.00 price objective on the stock. Erste Group Bank began coverage on Eaton in a research note on Tuesday, May 5th. They issued a “buy” rating for the company. Jefferies Financial Group assumed coverage on Eaton in a research note on Monday, March 16th. They issued a “buy” rating and a $430.00 price target on the stock. Finally, JPMorgan Chase & Co. upped their price objective on shares of Eaton from $406.00 to $445.00 and gave the company an “overweight” rating in a research note on Wednesday, May 6th. Two 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. According to data from MarketBeat, Eaton presently has a consensus rating of “Moderate Buy” and an average target price of $420.95.

Eaton Price Performance

The company has a market cap of $156.63 billion, a PE ratio of 39.43, a price-to-earnings-growth ratio of 2.55 and a beta of 1.19. The business’s 50 day moving average price is $396.30 and its 200-day moving average price is $364.75. 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, analysts forecast that Eaton Corporation, PLC will post 13.32 earnings per share for the current year.

Eaton Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Friday, May 8th were issued a $1.10 dividend. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.1%. The ex-dividend date was Friday, May 8th. Eaton’s payout ratio is 43.01%.

Insider Buying and Selling at Eaton

In related news, insider Antonio Galvao sold 494 shares of the firm’s stock in a transaction on Wednesday, May 13th. The stock was sold at an average price of $405.86, for a total transaction of $200,494.84. Following the transaction, the insider directly owned 9,175 shares in the company, valued at $3,723,765.50. This trade represents a 5.11% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Heath B. Monesmith sold 18,367 shares of the stock in a transaction on Wednesday, May 6th. The stock was sold at an average price of $409.11, for a total transaction of $7,514,123.37. Following the sale, the insider directly owned 49,822 shares in the company, valued at $20,382,678.42. This trade represents a 26.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 21,028 shares of company stock worth $8,614,793. 0.10% of the stock is owned by insiders.

Institutional Trading of Eaton

Several hedge funds have recently made changes to their positions in the stock. Hilton Head Capital Partners LLC acquired a new stake in Eaton in the fourth quarter worth $26,000. Sfam LLC acquired a new stake in shares of Eaton in the 4th quarter worth about $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management acquired a new position in Eaton during the 4th quarter valued at about $28,000. Eagle Bay Advisors LLC bought a new position in Eaton in the 4th quarter worth about $29,000. Finally, Boreal Capital Management LLC acquired a new stake in shares of Eaton in the first quarter valued at approximately $33,000. Institutional investors 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.