Eaton (ETN) Raised to “Hold” at Zacks Investment Research

Eaton (NYSE:ETN) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research report issued to clients and investors on Monday.

According to Zacks, “Shares of Eaton have gained higher than the industry in a year. Its fourth-quarter earnings and total revenues were better than expectations thanks to contribution of every segment.   Strong organic sales and positive currency translation also acted as tailwind.  We believe the improvement in end-market conditions is boosting the order book of the company. The free cash flow generation capability is also helping Eaton to move ahead with its shareholder-friendly initiatives. Ongoing R&D investments will help it to upgrade products and provide better electrical solutions to its customers. The company will gain from its multiyear restructuring program, which is expected to boost margins. Eaton’s wide operation exposes it to weather calamities, natural disaster, cyber-attacks and security breaches, which could adversely impact operation and earnings.”

ETN has been the subject of a number of other research reports. UBS Group began coverage on Eaton in a research note on Tuesday, January 23rd. They issued a “neutral” rating and a $87.00 price objective for the company. Citigroup boosted their target price on Eaton from $90.00 to $92.00 and gave the company a “buy” rating in a report on Thursday, November 2nd. Oppenheimer reissued a “hold” rating on shares of Eaton in a report on Tuesday, October 31st. Buckingham Research began coverage on Eaton in a report on Tuesday, October 17th. They issued a “neutral” rating and a $82.00 target price on the stock. Finally, Jefferies Group boosted their target price on Eaton from $70.00 to $80.00 and gave the company a “hold” rating in a report on Wednesday, November 1st. Three analysts have rated the stock with a sell rating, nine have assigned a hold rating and eight have issued a buy rating to the company’s stock. The stock currently has an average rating of “Hold” and a consensus price target of $86.57.

Shares of Eaton (NYSE ETN) traded down $0.38 during midday trading on Monday, reaching $84.71. The company’s stock had a trading volume of 1,288,566 shares, compared to its average volume of 2,714,541. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.13 and a current ratio of 1.65. Eaton has a one year low of $69.45 and a one year high of $89.85. The stock has a market capitalization of $37,490.00, a PE ratio of 12.68, a P/E/G ratio of 1.98 and a beta of 1.38.

Eaton (NYSE:ETN) last issued its quarterly earnings data on Thursday, February 1st. The industrial products company reported $1.29 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.25 by $0.04. Eaton had a return on equity of 12.84% and a net margin of 14.60%. The company had revenue of $5.21 billion during the quarter, compared to analysts’ expectations of $5.10 billion. During the same quarter in the previous year, the business earned $1.12 earnings per share. The firm’s revenue for the quarter was up 7.1% on a year-over-year basis. equities analysts predict that Eaton will post 5.09 EPS for the current year.

In other Eaton news, insider Revathi Advaithi sold 23,743 shares of the company’s stock in a transaction on Thursday, November 9th. The stock was sold at an average price of $78.36, for a total value of $1,860,501.48. Following the sale, the insider now owns 31,028 shares of the company’s stock, valued at $2,431,354.08. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Christopher M. Connor sold 6,450 shares of the company’s stock in a transaction on Friday, November 10th. The shares were sold at an average price of $78.04, for a total value of $503,358.00. Following the completion of the sale, the director now directly owns 20,100 shares in the company, valued at approximately $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 in the last ninety days. 0.80% of the stock is currently owned by corporate insiders.

Institutional investors have recently bought and sold shares of the business. Cable Hill Partners LLC grew its holdings in Eaton by 174.8% in the third quarter. Cable Hill Partners LLC now owns 1,363 shares of the industrial products company’s stock valued at $105,000 after purchasing an additional 867 shares during the last quarter. Fieldpoint Private Securities LLC acquired a new stake in Eaton in the third quarter valued at $130,000. Murphy Capital Management Inc. acquired a new stake in Eaton in the fourth quarter valued at $201,000. Carroll Financial Associates Inc. grew its holdings in Eaton by 113.6% in the fourth quarter. Carroll Financial Associates Inc. now owns 2,805 shares of the industrial products company’s stock valued at $221,000 after purchasing an additional 1,492 shares during the last quarter. Finally, Linscomb & Williams Inc. acquired a new stake in Eaton in the fourth quarter valued at $223,000. 76.63% of the stock is currently owned by institutional investors.

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Eaton Company Profile

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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