Brokerages Assign Eaton Co. plc (NYSE:ETN) Price Target of $340.06

Shares of Eaton Co. plc (NYSE:ETN – Get Free Report) have received a consensus rating of "Moderate Buy" from the seventeen brokerages currently covering the stock, according to reports from MarketBeat. Out of these analysts, four have issued a hold recommendation, while thirteen have suggested buying the stock. The average target price for the stock over the next twelve months is estimated to be around $341.00, based on recent updates from analysts.

Several brokerages have commented on Eaton's stock recently. For instance, Wells Fargo & Company raised their target price from $315.00 to $342.00, maintaining an "equal weight" rating in a report issued on October 7th. The Royal Bank of Canada reiterated its "outperform" rating, with a target price set at $374.00 for Eaton shares in a report on Friday. On the other hand, Wolfe Research recently upgraded Eaton from an "underperform" rating to a "peer perform" rating in a note released on September 6th. Raymond James adjusted their price target down from $375.00 to $365.00 but still maintained an "outperform" rating. Lastly, Citigroup initiated coverage of Eaton on September 16th, assigning a "buy" rating with a price target set at $348.00.

Current Stock Performance

As of Wednesday, shares of ETN opened at $335.00. The company has a current ratio of 1.56 and a quick ratio of 1.07, along with a debt-to-equity ratio of 0.44. Eaton's market capitalization stands at $133.36 billion, with a price-to-earnings ratio of 36.85 and a PEG ratio of 2.62. The stock has shown significant price movement, ranging from a 12-month low of $211.99 to a high of $349.74. Over the past 50 days, the moving average price has been around $323.09, while the 200-day moving average price is at $318.29.

Eaton recently announced its quarterly earnings on October 31st, revealing earnings per share of $2.84 for the quarter, which surpassed the consensus estimate of $2.80 by $0.04. The company's return on equity was 21.45%, and it reported a net margin of 15.12%. Eaton's revenue for the quarter was $6.35 billion, though this slightly missed analysts' expectations of $6.37 billion. This revenue showed a year-over-year increase of 7.9%, up from $2.47 earnings per share during the same timeframe last year. Analysts predict that Eaton will achieve an earnings per share of 10.75 for the current fiscal year.

Recent Dividend Declaration

In addition, Eaton has declared a quarterly dividend that is set to be distributed on November 22nd. Shareholders who are on record as of November 4th will receive a dividend of $0.94, amounting to an annualized dividend of $3.76, which corresponds to a yield of 1.12%. The ex-dividend date is also marked for November 4th. Currently, Eaton has a payout ratio of 41.36%.

Insider Activity

In other developments, Director Karenann K. Terrell acquired 500 shares of Eaton stock on August 21st, buying them at an average price of $298.97 per share, leading to a total expenditure of $149,485. Following this transaction, the director holds 500 shares valued at the same amount. This acquisition was reported in an SEC filing. In a related transaction, Director Dorothy C. Thompson purchased 2,205 shares on September 3rd at an average price of $300.30, amounting to $662,161.50. Following this purchase, she owns 2,205 shares in the company as well. Conversely, insiders sold 52,511 shares during the last quarter, worth approximately $15,809,326, representing 0.53% of the company’s total stock currently owned by insiders.

Institutional Investments

Institutional investors and hedge funds have also made changes to their holdings in Eaton recently. For example, Strategic Wealth Partners Ltd. increased its holdings by 3.0% in the third quarter, owning 1,027 shares after buying an additional 30 shares. Similarly, Fairfield Financial Advisors LTD raised its holdings by 16.2% in the same period, now owning 215 shares. Legacy Capital Group California Inc. increased its stake by 1.2%, holding 2,776 shares thereafter. Well Done LLC also raised their investment by 1.3%, now owning 2,551 shares. Along these lines, Austin Private Wealth LLC saw a 3.7% increase in holdings during the third quarter, owning 929 shares. Overall, institutional and hedge fund investors collectively own approximately 82.97% of the company's stock.

About Eaton Corporation

Eaton Corporation plc operates globally as a power management company. The company's services include providing electrical components and systems in areas like power distribution, industrial components, and residential products, covering both single and three-phase power quality products. Eaton also specializes in hazardous duty equipment, emergency lighting, fire detection systems, and utility power distribution products.

Eaton, Stock, Investment