Eaton (NYSE:ETN) Shares Down 7.6% – Time to Sell?

Eaton Corporation, PLC (NYSE:ETN) was down 7.6% during trading on Monday . The company traded as low as $387.00 and last traded at $393.0390. 3,181,978 shares traded hands during mid-day trading, an increase of 24% from the average daily volume of 2,563,343 shares. The stock had previously closed at $425.37.

Analyst Ratings Changes

ETN has been the topic of a number of recent research reports. BMO Capital Markets boosted their price target on shares of Eaton from $477.00 to $487.00 and gave the stock an “outperform” rating in a research report on Monday, August 3rd. Royal Bank Of Canada increased their price objective on shares of Eaton from $484.00 to $512.00 and gave the company an “outperform” rating in a report on Monday, August 3rd. UBS Group raised shares of Eaton from a “neutral” rating to a “buy” rating and raised their target price for the stock from $450.00 to $515.00 in a research note on Monday, September 7th. Weiss Ratings upgraded Eaton from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, August 28th. Finally, Sanford C. Bernstein restated an “outperform” rating on shares of Eaton in a research report on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $454.18.

Eaton Stock Down 7.6%

The firm’s fifty day simple moving average is $416.22 and its two-hundred day simple moving average is $399.67. The company has a current ratio of 1.24, a quick ratio of 0.79 and a debt-to-equity ratio of 0.91. The company has a market capitalization of $152.66 billion, a price-to-earnings ratio of 39.98, a price-to-earnings-growth ratio of 2.69 and a beta of 1.17.

Eaton (NYSE:ETN) last announced its quarterly earnings results on Friday, July 31st. The industrial products company reported $3.15 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.08 by $0.07. The business had revenue of $8.53 billion during the quarter, compared to the consensus estimate of $8.16 billion. Eaton had a net margin of 12.75% and a return on equity of 24.58%. The business’s revenue was up 21.4% compared to the same quarter last year. During the same quarter last year, the firm earned $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. Sell-side analysts anticipate that Eaton Corporation, PLC will post 13.56 EPS for the current year.

Eaton Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 7th were given a $1.10 dividend. The ex-dividend date was Friday, August 7th. This represents a $4.40 dividend on an annualized basis and a yield of 1.1%. Eaton’s payout ratio is currently 44.76%.

Insider Activity

In related news, Director Gerald Johnson purchased 130 shares of the company’s stock in a transaction on Thursday, August 13th. The stock was acquired at an average cost of $455.90 per share, for a total transaction of $59,267.00. Following the completion of the transaction, the director directly owned 1,829 shares in the company, valued at approximately $833,841.10. The trade was a 7.65% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. Also, insider Heath B. Monesmith sold 18,036 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The stock was sold at an average price of $458.04, for a total transaction of $8,261,209.44. Following the completion of the transaction, the insider owned 50,368 shares in the company, valued at approximately $23,070,558.72. This represents a 26.37% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.10% of the company’s stock.

Institutional Trading of Eaton

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Wellington Management Group LLP grew its stake in shares of Eaton by 19.6% in the second quarter. Wellington Management Group LLP now owns 6,827,266 shares of the industrial products company’s stock valued at $2,909,235,000 after buying an additional 1,120,567 shares in the last quarter. National Pension Service lifted its stake in Eaton by 3.5% during the 2nd quarter. National Pension Service now owns 864,731 shares of the industrial products company’s stock worth $368,479,000 after acquiring an additional 29,436 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd boosted its holdings in Eaton by 112.6% during the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 336,060 shares of the industrial products company’s stock valued at $120,199,000 after acquiring an additional 178,000 shares during the period. Bartlett & CO. Wealth Management LLC boosted its holdings in Eaton by 12.1% during the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 266,845 shares of the industrial products company’s stock valued at $95,442,000 after acquiring an additional 28,815 shares during the period. Finally, Bowen Hanes & Co. Inc. grew its position in Eaton by 0.5% in the 1st quarter. Bowen Hanes & Co. Inc. now owns 204,380 shares of the industrial products company’s stock valued at $73,101,000 after acquiring an additional 1,025 shares in the last quarter. Hedge funds and other institutional investors own 82.97% of the company’s stock.

About Eaton

Eaton plc is a power management company that helps businesses, utilities, data centers, industrial facilities and other customers manage electrical, hydraulic and mechanical power more safely and efficiently. Its products and systems support power distribution, circuit protection, power quality, backup power, industrial automation and energy management.

The company also supplies aerospace systems, including hydraulic, fuel, motion-control and air-management equipment, as well as components and systems for commercial and military aircraft.