Eaton (NYSE:ETN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “In the last six months, Eaton’s shares have returned lower than the industry it belongs to. Eaton’s wide operation exposes it to weather calamities, natural disaster, cyber-attacks and security breaches, which could adversely impact operation and earnings. Eaton expects its fourth quarter earnings to be adversely impact as the Tax Cuts and Jobs Act was signed into a law. Eaton’s wide market reach and varied product offerings will ensure continuous revenue generation for the company. Its restructuring activities will drive performance and help Eaton to achieve its guidance for the year. Consistent R&D investments will help it to create new products and provide better electrical solutions to its customers. The free cash flow generation capability is also helping Eaton to move ahead with its share repurchase program. The improvement in end-market conditions is boosting the order book of the company.”
Other analysts also recently issued research reports about the stock. ValuEngine raised shares of Eaton from a “hold” rating to a “buy” rating in a research report on Friday, September 15th. Citigroup raised their price target on shares of Eaton from $88.00 to $90.00 and gave the stock a “buy” rating in a research report on Friday, October 13th. Stifel Nicolaus reissued a “hold” rating and set a $80.00 price target on shares of Eaton in a research report on Monday, December 11th. Jefferies Group raised their price target on shares of Eaton from $70.00 to $80.00 and gave the stock a “hold” rating in a research report on Wednesday, November 1st. Finally, Oppenheimer reissued a “hold” rating on shares of Eaton in a research report on Tuesday, October 31st. Five equities research analysts have rated the stock with a sell rating, nine have given a hold rating and seven have given a buy rating to the company’s stock. The stock presently has a consensus rating of “Hold” and a consensus target price of $83.43.
Eaton (NYSE:ETN) traded up $0.25 during mid-day trading on Tuesday, hitting $84.24. 2,417,481 shares of the stock were exchanged, compared to its average volume of 2,410,000. Eaton has a twelve month low of $66.98 and a twelve month high of $84.35. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.43 and a quick ratio of 1.02. The firm has a market capitalization of $37,010.00, a P/E ratio of 19.32, a P/E/G ratio of 1.97 and a beta of 1.38.
Eaton (NYSE:ETN) last released its quarterly earnings results on Tuesday, October 31st. The industrial products company reported $1.25 earnings per share for the quarter, hitting analysts’ consensus estimates of $1.25. Eaton had a net margin of 14.21% and a return on equity of 12.89%. The business had revenue of $5.21 billion during the quarter, compared to the consensus estimate of $5.12 billion. During the same quarter last year, the company earned $1.16 earnings per share. The business’s quarterly revenue was up 6.4% compared to the same quarter last year. research analysts forecast that Eaton will post 4.6 EPS for the current fiscal year.
In related news, insider Revathi Advaithi sold 23,743 shares of the firm’s stock in a transaction on Thursday, November 9th. The stock was sold at an average price of $78.36, for a total transaction of $1,860,501.48. Following the transaction, the insider now directly owns 31,028 shares in the company, valued at $2,431,354.08. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Christopher M. Connor sold 6,450 shares of the firm’s stock in a transaction on Friday, November 10th. The stock was sold at an average price of $78.04, for a total value of $503,358.00. Following the transaction, the director now owns 20,100 shares in the company, valued at $1,568,604. The disclosure for this sale can be found here. Insiders have sold 58,938 shares of company stock worth $4,597,529 over the last 90 days. 0.80% of the stock is currently owned by company insiders.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Cable Hill Partners LLC lifted its stake in Eaton by 174.8% during the third quarter. Cable Hill Partners LLC now owns 1,363 shares of the industrial products company’s stock worth $105,000 after purchasing an additional 867 shares during the last quarter. Fieldpoint Private Securities LLC bought a new position in Eaton during the third quarter worth $130,000. Captrust Financial Advisors bought a new position in Eaton during the second quarter worth $133,000. Harfst & Associates Inc. lifted its stake in Eaton by 21.8% in the second quarter. Harfst & Associates Inc. now owns 1,798 shares of the industrial products company’s stock valued at $139,000 after buying an additional 322 shares during the last quarter. Finally, Acrospire Investment Management LLC lifted its stake in Eaton by 325.9% in the second quarter. Acrospire Investment Management LLC now owns 2,091 shares of the industrial products company’s stock valued at $163,000 after buying an additional 1,600 shares during the last quarter. Hedge funds and other institutional investors own 76.52% of the company’s stock.
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Eaton Corporation (Eaton) is a diversified power management company. It is engaged in the manufacturing of electrical components and systems for power quality, distribution and control; hydraulics components, systems and services for industrial and mobile equipment; aerospace fuel, hydraulics and pneumatic systems for commercial and military use, and truck and automotive drivetrain and powertrain systems for performance, fuel economy and safety.
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