Eaton (NYSE:ETN) Shares Up 2.7% – Time to Buy?

Shares of Eaton Corporation, PLC (NYSE:ETN) traded up 2.7% during trading on Wednesday . The company traded as high as $420.93 and last traded at $420.39. 1,748,583 shares traded hands during trading, a decline of 33% from the average session volume of 2,611,967 shares. The stock had previously closed at $409.20.

Analyst Ratings Changes

Several brokerages have recently weighed in on ETN. Sanford C. Bernstein reissued an “outperform” rating on shares of Eaton in a research report on Monday, August 3rd. Erste Group Bank assumed coverage on shares of Eaton in a report on Tuesday, May 5th. They set a “buy” rating for the company. Robert W. Baird set a $500.00 price target on shares of Eaton and gave the company an “outperform” rating in a research note on Thursday, August 20th. Morgan Stanley reissued an “overweight” rating and issued a $500.00 price target on shares of Eaton in a report on Sunday, May 10th. Finally, Wall Street Zen downgraded shares of Eaton from a “buy” rating to a “hold” rating in a research report on Sunday, August 16th. Three equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, Eaton currently has a consensus rating of “Moderate Buy” and an average price target of $440.89.

Eaton Stock Up 2.7%

The company has a current ratio of 1.24, a quick ratio of 0.79 and a debt-to-equity ratio of 0.91. The stock has a market cap of $163.28 billion, a P/E ratio of 42.77, a PEG ratio of 2.58 and a beta of 1.18. The firm has a 50-day simple moving average of $417.33 and a two-hundred day simple moving average of $396.98.

Eaton (NYSE:ETN) last announced its earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share (EPS) for the quarter, beating 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 company had revenue of $8.53 billion during the quarter, compared to analysts’ expectations of $8.16 billion. During the same quarter in the previous year, the business posted $2.95 earnings per share. Eaton’s quarterly revenue was up 21.4% on a year-over-year basis. 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 research analysts expect that Eaton Corporation, PLC will post 13.55 earnings per share for the current fiscal year.

Eaton Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be given a dividend of $1.10 per share. This represents a $4.40 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date is Friday, August 7th. Eaton’s dividend payout ratio is presently 44.76%.

Insider Activity

In related news, Director Gerald Johnson acquired 130 shares of the 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 in the company, valued at approximately $833,841.10. The trade was a 7.65% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Heath B. Monesmith sold 18,036 shares of the company’s stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $458.04, for a total value of $8,261,209.44. Following the sale, the insider owned 50,368 shares of the company’s stock, valued at approximately $23,070,558.72. The trade was a 26.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Eaton

Several institutional investors and hedge funds have recently bought and sold shares of the company. Manning & Napier Advisors LLC bought a new position in Eaton in the 2nd quarter valued at about $27,000. Hilton Head Capital Partners LLC bought a new stake in shares of Eaton during the 4th quarter worth approximately $26,000. Archer Investment Corp acquired a new stake in shares of Eaton during the 2nd quarter worth approximately $35,000. Sfam LLC bought a new position in Eaton in the fourth quarter valued at approximately $27,000. Finally, Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Eaton in the fourth quarter valued at approximately $28,000. Institutional investors own 82.97% of the company’s stock.

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.