Eaton (NYSE:ETN) Stock Price Down 7.6% – Here’s Why

Eaton Corporation, PLC (NYSE:ETN)’s share price was down 7.6% on Monday . The stock 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 Upgrades and Downgrades

A number of brokerages have weighed in on ETN. Morgan Stanley lifted their target price on Eaton from $500.00 to $520.00 and gave the stock an “overweight” rating in a report on Friday, August 28th. UBS Group upgraded shares of Eaton from a “neutral” rating to a “buy” rating and lifted their price objective for the company from $450.00 to $515.00 in a report on Monday, September 7th. Citigroup raised their target price on Eaton from $471.00 to $485.00 and gave the company a “buy” rating in a report on Monday, August 3rd. Evercore raised shares of Eaton from an “in-line” rating to an “outperform” rating and set a $502.00 price target on the stock in a research report on Monday, August 3rd. Finally, Royal Bank Of Canada boosted their price objective on Eaton from $484.00 to $512.00 and gave the stock an “outperform” rating in a research report on Monday, August 3rd. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, Eaton currently has an average rating of “Buy” and an average price target of $451.62.

Eaton Trading Down 0.3%

The firm has a 50-day simple moving average of $415.73 and a 200-day simple moving average of $399.93. 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 stock has a market cap of $152.19 billion, a PE ratio of 39.86, a P/E/G ratio of 2.48 and a beta of 1.17.

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

Eaton Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 7th were paid a dividend of $1.10 per share. The ex-dividend date of this dividend was Friday, August 7th. This represents a $4.40 annualized dividend and a yield of 1.1%. Eaton’s dividend payout ratio (DPR) is currently 44.76%.

Insider Activity

In other news, insider Heath Monesmith sold 18,036 shares of the business’s stock in a transaction dated 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 of the company’s stock, valued at approximately $23,070,558.72. The trade was a 26.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Adam Wadecki sold 525 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $440.54, for a total transaction of $231,283.50. Following the completion of the transaction, the insider directly owned 1,054 shares of the company’s stock, valued at approximately $464,329.16. This represents a 33.25% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.10% of the company’s stock.

Institutional Investors Weigh In On Eaton

A number of institutional investors have recently made changes to their positions in the business. Wellington Management Group LLP boosted its holdings in Eaton by 19.6% during the 2nd 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 acquiring an additional 1,120,567 shares during the period. National Pension Service boosted its position in shares of Eaton by 3.5% during the second quarter. National Pension Service now owns 864,731 shares of the industrial products company’s stock valued at $368,479,000 after purchasing an additional 29,436 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd increased its stake in shares of Eaton by 112.6% in the 1st quarter. Clal Insurance Enterprises Holdings Ltd now owns 336,060 shares of the industrial products company’s stock worth $120,199,000 after acquiring an additional 178,000 shares in the last quarter. Bartlett & CO. Wealth Management LLC increased its stake in shares of Eaton by 12.1% during the first quarter. Bartlett & CO. Wealth Management LLC now owns 266,845 shares of the industrial products company’s stock valued at $95,442,000 after purchasing an additional 28,815 shares in the last quarter. Finally, TD Waterhouse Canada Inc. raised its stake in Eaton by 6.7% during the second quarter. TD Waterhouse Canada Inc. now owns 188,970 shares of the industrial products company’s stock valued at $77,973,000 after buying an additional 11,804 shares during 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.