Eaton (NYSE:ETN) Sets New 52-Week High Following Earnings Beat

Eaton Co. plc (NYSE:ETN) shares reached a new 52-week high on Tuesday following a better than expected earnings announcement. The stock traded as high as $333.06 and last traded at $323.73, with a volume of 878417 shares trading hands. The stock had previously closed at $326.51.

The industrial products company reported $2.40 earnings per share for the quarter, beating analysts’ consensus estimates of $2.28 by $0.12. The business had revenue of $5.94 billion during the quarter, compared to analyst estimates of $5.91 billion. Eaton had a return on equity of 20.69% and a net margin of 14.38%. The company’s revenue was up 8.4% on a year-over-year basis. During the same quarter last year, the business posted $1.88 EPS.

Eaton Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, May 24th. Shareholders of record on Monday, May 6th will be issued a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 1.21%. The ex-dividend date is Friday, May 3rd. Eaton’s payout ratio is presently 44.39%.

Analysts Set New Price Targets

Several research firms have recently weighed in on ETN. Evercore ISI lifted their target price on shares of Eaton from $262.00 to $308.00 and gave the company an “outperform” rating in a report on Tuesday, February 20th. Barclays raised shares of Eaton from an “underweight” rating to an “equal weight” rating and lifted their price objective for the company from $250.00 to $300.00 in a report on Tuesday, April 2nd. UBS Group increased their target price on shares of Eaton from $255.00 to $305.00 and gave the stock a “buy” rating in a research note on Friday, February 2nd. Wolfe Research restated an “underperform” rating and issued a $312.00 price target on shares of Eaton in a research note on Monday, April 8th. Finally, Royal Bank of Canada upgraded Eaton from a “sector perform” rating to an “outperform” rating and increased their price target for the stock from $286.00 to $371.00 in a research report on Friday, April 5th. One analyst has rated the stock with a sell rating, three have issued a hold rating and twelve have issued a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $302.93.

Insider Activity at Eaton

In other news, insider Peter Denk sold 1,731 shares of the stock in a transaction on Thursday, February 29th. The stock was sold at an average price of $288.97, for a total transaction of $500,207.07. Following the completion of the transaction, the insider now directly owns 5,514 shares in the company, valued at approximately $1,593,380.58. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, insider Peter Denk sold 1,731 shares of the business’s stock in a transaction on Thursday, February 29th. The stock was sold at an average price of $288.97, for a total transaction of $500,207.07. Following the completion of the transaction, the insider now directly owns 5,514 shares of the company’s stock, valued at approximately $1,593,380.58. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Olivier Leonetti sold 4,461 shares of the firm’s stock in a transaction on Tuesday, February 13th. The shares were sold at an average price of $272.00, for a total transaction of $1,213,392.00. Following the completion of the sale, the insider now owns 630 shares in the company, valued at $171,360. The disclosure for this sale can be found here. Over the last quarter, insiders sold 38,969 shares of company stock valued at $10,904,774. 0.53% of the stock is owned by company insiders.

Hedge Funds Weigh In On Eaton

Several large investors have recently bought and sold shares of the stock. Accurate Wealth Management LLC acquired a new position in shares of Eaton in the 3rd quarter valued at $226,000. Vicus Capital purchased a new stake in shares of Eaton in the third quarter valued at about $301,000. Cambridge Investment Research Advisors Inc. increased its stake in shares of Eaton by 6.2% during the third quarter. Cambridge Investment Research Advisors Inc. now owns 62,359 shares of the industrial products company’s stock worth $13,300,000 after acquiring an additional 3,648 shares during the period. Robeco Institutional Asset Management B.V. raised its holdings in Eaton by 4.0% during the third quarter. Robeco Institutional Asset Management B.V. now owns 105,233 shares of the industrial products company’s stock worth $22,444,000 after purchasing an additional 4,048 shares in the last quarter. Finally, FinTrust Capital Advisors LLC boosted its holdings in Eaton by 9.6% in the 3rd quarter. FinTrust Capital Advisors LLC now owns 1,444 shares of the industrial products company’s stock valued at $308,000 after purchasing an additional 126 shares in the last quarter. Institutional investors and hedge funds own 82.97% of the company’s stock.

Eaton Price Performance

The company has a debt-to-equity ratio of 0.42, a quick ratio of 1.02 and a current ratio of 1.56. The company has a 50-day simple moving average of $307.35 and a 200-day simple moving average of $260.80. The company has a market cap of $124.66 billion, a price-to-earnings ratio of 36.84, a PEG ratio of 2.63 and a beta of 1.06.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.