Eaton (NYSE:ETN) Shares Down 3.2% – What’s Next?

Eaton Corporation, PLC (NYSE:ETN) was down 3.2% during trading on Friday . The stock traded as low as $402.31 and last traded at $402.56. 1,819,945 shares traded hands during mid-day trading, a decline of 30% from the average session volume of 2,601,008 shares. The stock had previously closed at $416.04.

Analyst Upgrades and Downgrades

Several brokerages recently commented on ETN. Wells Fargo & Company raised their target price on Eaton from $350.00 to $425.00 and gave the company an “equal weight” rating in a report on Wednesday, May 6th. BMO Capital Markets increased their price objective on shares of Eaton from $477.00 to $487.00 and gave the company an “outperform” rating in a research report on Monday, August 3rd. Morgan Stanley raised their price target on shares of Eaton from $500.00 to $520.00 and gave the company an “overweight” rating in a report on Friday. Wall Street Zen lowered shares of Eaton from a “buy” rating to a “hold” rating in a report on Sunday, August 16th. Finally, Evercore raised shares of Eaton from an “in-line” rating to an “outperform” rating and set a $502.00 price objective for the company in a research report on Monday, August 3rd. Three research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $442.00.

Eaton Stock Performance

The company has a debt-to-equity ratio of 0.91, a quick ratio of 0.79 and a current ratio of 1.24. The company has a market capitalization of $156.35 billion, a PE ratio of 40.95, a PEG ratio of 2.65 and a beta of 1.18. The company has a 50 day moving average price of $417.41 and a 200 day moving average price of $397.74.

Eaton (NYSE:ETN) last issued its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.08 by $0.07. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The business had revenue of $8.53 billion during the quarter, compared to analyst estimates of $8.16 billion. During the same quarter in the previous year, the firm earned $2.95 earnings per share. The business’s revenue was up 21.4% compared to the same quarter last year. Eaton has set its Q3 2026 guidance at 3.460-3.560 EPS and its FY 2026 guidance at 13.400-13.600 EPS. Equities analysts forecast that Eaton Corporation, PLC will post 13.55 EPS for the current year.

Eaton Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Stockholders of record on Friday, August 7th will be given a dividend of $1.10 per share. The ex-dividend date of this dividend is Friday, August 7th. This represents a $4.40 annualized dividend and a dividend yield of 1.1%. Eaton’s dividend payout ratio (DPR) is presently 44.76%.

Insider Buying and Selling

In related news, insider Heath B. Monesmith sold 18,036 shares of Eaton stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $458.04, for a total value of $8,261,209.44. Following the completion of the transaction, the insider directly owned 50,368 shares in the company, valued at approximately $23,070,558.72. This trade represents a 26.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Gerald Johnson acquired 130 shares of the business’s stock in a transaction on Thursday, August 13th. The shares were purchased at an average price of $455.90 per share, for a total transaction of $59,267.00. Following the purchase, the director directly owned 1,829 shares of the company’s stock, valued at $833,841.10. This represents a 7.65% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders own 0.10% of the company’s stock.

Hedge Funds Weigh In On Eaton

A number of hedge funds have recently added to or reduced their stakes in the business. North Star Investment Management Corp. increased its stake in Eaton by 0.3% during the first quarter. North Star Investment Management Corp. now owns 8,101 shares of the industrial products company’s stock valued at $2,897,000 after purchasing an additional 28 shares during the last quarter. Bogart Wealth LLC lifted its position in shares of Eaton by 1.3% in the 1st quarter. Bogart Wealth LLC now owns 2,184 shares of the industrial products company’s stock worth $781,000 after buying an additional 29 shares during the last quarter. Pring Turner Capital Group Inc. boosted its holdings in shares of Eaton by 0.3% in the 4th quarter. Pring Turner Capital Group Inc. now owns 10,528 shares of the industrial products company’s stock valued at $3,353,000 after buying an additional 30 shares during the period. Ellevest Inc. boosted its holdings in shares of Eaton by 2.5% in the 4th quarter. Ellevest Inc. now owns 1,281 shares of the industrial products company’s stock valued at $408,000 after buying an additional 31 shares during the period. Finally, Tanager Wealth Management LLP grew its position in shares of Eaton by 5.4% during the 2nd quarter. Tanager Wealth Management LLP now owns 606 shares of the industrial products company’s stock valued at $258,000 after buying an additional 31 shares during 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.