Wall Street Zen Downgrades Eaton (NYSE:ETN) to Hold

Eaton (NYSE:ETN) was downgraded by research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research note issued on Sunday.

A number of other equities research analysts have also recently issued reports on the stock. Sanford C. Bernstein reissued an “outperform” rating on shares of Eaton in a report on Monday, August 3rd. BMO Capital Markets lifted their price target on Eaton from $477.00 to $487.00 and gave the company an “outperform” rating in a research report on Monday, August 3rd. Citigroup boosted their price objective on Eaton from $471.00 to $485.00 and gave the company a “buy” rating in a research note on Monday, August 3rd. Barclays increased their price objective on Eaton from $340.00 to $392.00 and gave the stock an “equal weight” rating in a report on Wednesday, May 6th. Finally, Erste Group Bank started coverage on Eaton in a research note on Tuesday, May 5th. They issued a “buy” rating for the company. Two research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $431.78.

Eaton Price Performance

ETN opened at $457.04 on Friday. The company has a market capitalization of $177.51 billion, a price-to-earnings ratio of 46.49, a PEG ratio of 2.86 and a beta of 1.18. The company has a quick ratio of 0.79, a current ratio of 1.24 and a debt-to-equity ratio of 0.91. The firm has a 50-day moving average price of $414.72 and a 200-day moving average price of $394.38. Eaton has a twelve month low of $311.92 and a twelve month high of $478.00.

Eaton (NYSE:ETN) last announced its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 EPS for the quarter, beating analysts’ consensus estimates of $3.08 by $0.07. The company had revenue of $8.53 billion for the quarter, compared to analysts’ expectations of $8.16 billion. Eaton had a net margin of 12.75% and a return on equity of 24.58%. Eaton’s revenue was up 21.4% compared to the same quarter last year. During the same period in the prior year, the company posted $2.95 EPS. 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 expect that Eaton will post 13.54 EPS for the current year.

Insiders Place Their Bets

In other Eaton news, insider Heath B. Monesmith sold 18,036 shares of the company’s 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 transaction, the insider directly owned 50,368 shares in the company, valued at $23,070,558.72. This represents a 26.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Dorothy C. Thompson sold 167 shares of the firm’s stock in a transaction dated Friday, May 22nd. The shares were sold at an average price of $385.00, for a total value of $64,295.00. Following the completion of the sale, the director directly owned 1,096 shares in the company, valued at approximately $421,960. The trade was a 13.22% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 18,728 shares of company stock worth $8,556,788. 0.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Brighton Jones LLC grew its stake in Eaton by 1.4% in the 4th quarter. Brighton Jones LLC now owns 3,341 shares of the industrial products company’s stock worth $1,109,000 after buying an additional 45 shares in the last quarter. Revolve Wealth Partners LLC raised its position in shares of Eaton by 17.5% during the 4th quarter. Revolve Wealth Partners LLC now owns 913 shares of the industrial products company’s stock valued at $303,000 after buying an additional 136 shares in the last quarter. Empowered Funds LLC raised its position in shares of Eaton by 5.6% during the 1st quarter. Empowered Funds LLC now owns 9,402 shares of the industrial products company’s stock valued at $2,556,000 after buying an additional 496 shares in the last quarter. Vista Capital Partners Inc. bought a new stake in shares of Eaton during the 2nd quarter worth $259,000. Finally, Tandem Wealth Advisors LLC grew its position in Eaton by 70.1% in the second quarter. Tandem Wealth Advisors LLC now owns 2,216 shares of the industrial products company’s stock worth $791,000 after acquiring an additional 913 shares in the last quarter. Hedge funds and other institutional investors 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.