Eaton (NYSE:ETN) Downgraded to Hold at HSBC

HSBC cut shares of Eaton (NYSE:ETN) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning, PriceTargets.com reports. HSBC currently has $153.00 target price on the industrial products company’s stock.

A number of other brokerages have also commented on ETN. Barclays lifted their price target on shares of Eaton from $148.00 to $165.00 and gave the stock an equal weight rating in a report on Wednesday, August 4th. Argus lifted their price target on shares of Eaton from $165.00 to $185.00 and gave the stock a buy rating in a report on Tuesday, August 10th. Royal Bank of Canada lifted their price target on shares of Eaton from $146.00 to $154.00 and gave the stock a sector perform rating in a report on Wednesday, August 4th. UBS Group lifted their price target on shares of Eaton from $165.00 to $186.00 and gave the stock a buy rating in a report on Wednesday, August 11th. Finally, William Blair reiterated a market perform rating on shares of Eaton in a report on Tuesday, August 3rd. Six equities research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of Buy and an average target price of $161.06.

Shares of Eaton stock opened at $156.30 on Tuesday. Eaton has a fifty-two week low of $96.24 and a fifty-two week high of $171.32. The company has a debt-to-equity ratio of 0.56, a current ratio of 1.10 and a quick ratio of 0.80. The firm has a market capitalization of $62.30 billion, a P/E ratio of 33.33, a P/E/G ratio of 2.14 and a beta of 1.15. The company’s 50 day moving average price is $161.45 and its two-hundred day moving average price is $149.20.

Eaton (NYSE:ETN) last issued its earnings results on Tuesday, August 3rd. The industrial products company reported $1.72 earnings per share for the quarter, beating analysts’ consensus estimates of $1.57 by $0.15. Eaton had a net margin of 9.86% and a return on equity of 15.03%. The firm had revenue of $5.22 billion for the quarter, compared to analyst estimates of $4.99 billion. During the same quarter last year, the business posted $0.70 earnings per share. The company’s quarterly revenue was up 35.2% on a year-over-year basis. On average, analysts expect that Eaton will post 6.82 earnings per share for the current year.

The business also recently declared a quarterly dividend, which was paid on Friday, August 27th. Shareholders of record on Friday, August 13th were paid a $0.76 dividend. This represents a $3.04 annualized dividend and a yield of 1.94%. The ex-dividend date was Thursday, August 12th. Eaton’s dividend payout ratio (DPR) is currently 71.70%.

In other news, insider Uday Yadav sold 32,189 shares of the business’s stock in a transaction dated Thursday, August 12th. The shares were sold at an average price of $166.43, for a total transaction of $5,357,215.27. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Christopher M. Connor bought 1,000 shares of the firm’s stock in a transaction dated Wednesday, August 11th. The shares were acquired at an average cost of $167.34 per share, with a total value of $167,340.00. The disclosure for this purchase can be found here. Over the last ninety days, insiders sold 41,919 shares of company stock valued at $6,980,872. Insiders own 0.53% of the company’s stock.

Institutional investors have recently added to or reduced their stakes in the stock. Element Pointe Advisors LLC purchased a new position in Eaton during the first quarter worth about $1,146,000. Sheaff Brock Investment Advisors LLC purchased a new position in Eaton during the first quarter worth about $1,198,000. Public Employees Retirement System of Ohio boosted its holdings in Eaton by 6.0% during the first quarter. Public Employees Retirement System of Ohio now owns 287,221 shares of the industrial products company’s stock worth $39,717,000 after purchasing an additional 16,360 shares during the last quarter. Proquility Private Wealth Partners LLC purchased a new position in Eaton during the first quarter worth about $1,606,000. Finally, Tudor Investment Corp Et Al purchased a new position in Eaton during the first quarter worth about $1,706,000. Institutional investors and hedge funds own 77.63% of the company’s stock.

About Eaton

Eaton Corp. Plc is a power management company, which provides energy-efficient solutions for electrical, hydraulic, and mechanical power. It operates through the following segments: Electrical Americas and Electrical Global, Hydraulics, Aerospace, Vehicle, and eMobility. The Electrical Americas and Electrical Global segment engages in sales contracts for electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality, wiring devices, circuit protection, utility power distribution, power reliability equipment, and service.

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Analyst Recommendations for Eaton (NYSE:ETN)

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