Eaton (NYSE:ETN) Stock Price Down 6.4% – Here’s Why

Eaton Corporation, PLC (NYSE:ETN)’s stock price traded down 6.4% on Wednesday . The company traded as low as $375.04 and last traded at $375.8910. 3,507,073 shares were traded during trading, an increase of 26% from the average session volume of 2,776,218 shares. The stock had previously closed at $401.72.

Wall Street Analysts Forecast Growth

A number of equities analysts have weighed in on the stock. Morgan Stanley reiterated an “overweight” rating and set a $500.00 target price on shares of Eaton in a research report on Sunday, May 10th. Erste Group Bank assumed coverage on shares of Eaton in a research report on Tuesday, May 5th. They set a “buy” rating for the company. Weiss Ratings lowered shares of Eaton from a “buy (b)” rating to a “buy (b-)” rating in a research report on Monday, May 18th. Evercore set a $453.00 target price on shares of Eaton in a research report on Monday, May 11th. Finally, Jefferies Financial Group started coverage on shares of Eaton in a research report on Monday, March 16th. They set a “buy” rating and a $430.00 target price for the company. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $420.95.

Eaton Price Performance

The stock has a market capitalization of $145.96 billion, a PE ratio of 36.74, a P/E/G ratio of 2.59 and a beta of 1.19. The firm’s 50 day simple moving average is $398.11 and its 200 day simple moving average is $365.60. The company has a debt-to-equity ratio of 0.94, a current ratio of 1.19 and a quick ratio of 0.75.

Eaton (NYSE:ETN) last posted its quarterly earnings results on Tuesday, May 5th. The industrial products company reported $2.81 EPS for the quarter, topping the consensus estimate of $2.73 by $0.08. Eaton had a net margin of 13.99% and a return on equity of 24.72%. The firm had revenue of $7.45 billion for the quarter, compared to the consensus estimate of $7.14 billion. During the same period last year, the firm posted $2.72 earnings per share. The business’s revenue was up 16.8% compared to the same quarter last year. Eaton has set its Q2 2026 guidance at 3.000-3.100 EPS and its FY 2026 guidance at 13.050-13.500 EPS. As a group, equities analysts forecast that Eaton Corporation, PLC will post 13.32 EPS for the current fiscal year.

Eaton Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 8th were paid a $1.10 dividend. This represents a $4.40 annualized dividend and a dividend yield of 1.2%. The ex-dividend date of this dividend was Friday, May 8th. Eaton’s payout ratio is presently 43.01%.

Insider Buying and Selling

In related news, insider Antonio Galvao sold 494 shares of Eaton stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $405.86, for a total value of $200,494.84. Following the sale, the insider owned 9,175 shares in the company, valued at $3,723,765.50. The trade was a 5.11% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Peter Denk sold 2,000 shares of Eaton stock in a transaction on Wednesday, May 6th. The shares were sold at an average price of $417.94, for a total transaction of $835,880.00. Following the completion of the sale, the insider owned 7,102 shares in the company, valued at approximately $2,968,209.88. This trade represents a 21.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 21,028 shares of company stock valued at $8,614,793 over the last quarter. Company insiders own 0.10% of the company’s stock.

Institutional Trading of Eaton

Large investors have recently added to or reduced their stakes in the stock. Hilton Head Capital Partners LLC purchased a new stake in shares of Eaton in the 4th quarter worth about $26,000. Sfam LLC bought a new position in Eaton in the 4th quarter worth about $27,000. Gunpowder Capital Management LLC dba Oliver Wealth Management bought a new position in Eaton in the 4th quarter worth about $28,000. Eagle Bay Advisors LLC bought a new position in Eaton in the 4th quarter worth about $29,000. Finally, Boreal Capital Management LLC bought a new position in Eaton in the 1st quarter worth about $33,000. 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.