Eaton (NYSE:ETN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “In the last 24 months, Eaton’s shares have gained higher than the industry. 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. We believe the improvement in end-market conditions is boosting the order book of the company. However, wide operation exposes it to weather calamities, natural disaster, cyber-attacks and security breaches, which adversely impact operation and earnings.”
ETN has been the topic of several other research reports. Robert W. Baird raised Eaton from a “neutral” rating to an “outperform” rating and increased their target price for the company from $82.00 to $92.00 in a report on Wednesday. ValuEngine raised Eaton from a “hold” rating to a “buy” rating in a report on Friday, September 15th. Stifel Nicolaus reissued a “hold” rating and issued a $80.00 target price on shares of Eaton in a report on Monday, December 11th. Jefferies Group increased 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. Finally, Morgan Stanley reissued an “overweight” rating and issued a $88.00 target price (up previously from $87.00) on shares of Eaton in a report on Monday, October 2nd. Four investment analysts have rated the stock with a sell rating, ten have given a hold rating and seven have assigned a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus price target of $83.43.
Eaton (NYSE:ETN) last announced its quarterly earnings data on Tuesday, October 31st. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, meeting the consensus estimate of $1.25. The business had revenue of $5.21 billion for the quarter, compared to analysts’ expectations of $5.12 billion. Eaton had a return on equity of 12.89% and a net margin of 14.21%. The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. During the same period last year, the firm earned $1.16 earnings per share. sell-side analysts expect that Eaton will post 4.6 earnings per share for the current fiscal year.
In other Eaton news, Director Christopher M. Connor sold 6,450 shares of the firm’s stock in a transaction dated Friday, November 10th. The stock was sold at an average price of $78.04, for a total transaction of $503,358.00. Following the transaction, the director now owns 20,100 shares of the company’s stock, valued at $1,568,604. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, Director Charles E. Golden sold 4,311 shares of the firm’s stock in a transaction dated Tuesday, November 21st. The stock was sold at an average price of $76.03, for a total value of $327,765.33. Following the transaction, the director now directly owns 20,275 shares in the company, valued at approximately $1,541,508.25. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 58,938 shares of company stock worth $4,597,529. Corporate insiders own 0.80% of the company’s stock.
Several hedge funds have recently modified their holdings of ETN. Cable Hill Partners LLC grew its holdings in shares of 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 purchased a new position in shares of Eaton during the third quarter worth about $130,000. Captrust Financial Advisors purchased a new position in shares of Eaton during the second quarter worth about $133,000. Harfst & Associates Inc. grew its holdings in shares of Eaton by 21.8% during the second quarter. Harfst & Associates Inc. now owns 1,798 shares of the industrial products company’s stock worth $139,000 after purchasing an additional 322 shares during the last quarter. Finally, Acrospire Investment Management LLC grew its holdings in shares of Eaton by 325.9% during the second quarter. Acrospire Investment Management LLC now owns 2,091 shares of the industrial products company’s stock worth $163,000 after purchasing an additional 1,600 shares during the last quarter. 76.51% of the stock is currently owned by institutional investors.
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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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