Zacks Investment Research Upgrades Eaton (NYSE:ETN) to “Buy”

Zacks Investment Research upgraded shares of Eaton (NYSE:ETN) from a hold rating to a buy rating in a research note released on Tuesday, January 2nd. Zacks Investment Research currently has $88.00 price objective on the industrial products company’s stock.

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.”

Several other analysts also recently weighed in on the stock. Citigroup boosted their price objective on shares of Eaton from $90.00 to $92.00 and gave the stock a buy rating in a research report on Thursday, November 2nd. Jefferies Group upped their price target on shares of Eaton from $70.00 to $80.00 and gave the company a hold rating in a research report on Wednesday, November 1st. Credit Suisse Group reiterated an outperform rating and issued a $92.00 price target (up previously from $86.00) on shares of Eaton in a research report on Wednesday, November 1st. Oppenheimer reiterated a hold rating on shares of Eaton in a research report on Tuesday, October 31st. Finally, Buckingham Research began coverage on shares of Eaton in a research note on Tuesday, October 17th. They issued a neutral rating and a $82.00 price objective on the stock. Five research analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company’s stock. Eaton presently has a consensus rating of Hold and an average price target of $83.43.

Shares of Eaton (NYSE:ETN) opened at $84.24 on Tuesday. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.02 and a current ratio of 1.43. The firm has a market cap of $37,010.00, a PE ratio of 19.32, a price-to-earnings-growth ratio of 1.97 and a beta of 1.38. Eaton has a 12-month low of $66.98 and a 12-month high of $84.35.

Eaton (NYSE:ETN) last announced its quarterly earnings data on Tuesday, October 31st. The industrial products company reported $1.25 earnings per share for the quarter, meeting analysts’ consensus estimates of $1.25. Eaton had a net margin of 14.21% and a return on equity of 12.89%. The firm had revenue of $5.21 billion during the quarter, compared to analysts’ expectations of $5.12 billion. During the same quarter in the previous year, the business posted $1.16 earnings per share. The business’s quarterly revenue was up 6.4% compared to the same quarter last year. equities research analysts anticipate that Eaton will post 4.6 EPS for the current year.

In other Eaton news, Director Charles E. Golden sold 4,311 shares of the stock in a transaction that occurred on Tuesday, November 21st. The shares were sold at an average price of $76.03, for a total value of $327,765.33. Following the completion of the sale, the director now owns 20,275 shares of the company’s stock, valued at $1,541,508.25. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Nandakumar Cheruvatath sold 10,000 shares of the firm’s stock in a transaction that occurred on Friday, December 8th. The stock was sold at an average price of $77.50, for a total transaction of $775,000.00. Following the sale, the insider now directly owns 16,571 shares of the company’s stock, valued at approximately $1,284,252.50. The disclosure for this sale can be found here. Insiders sold 58,938 shares of company stock worth $4,597,529 in the last 90 days. 0.80% of the stock is currently owned by insiders.

Several hedge funds have recently added to or reduced their stakes in the company. Harfst & Associates Inc. grew its position 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 buying an additional 322 shares in the last quarter. Pring Turner Capital Group Inc. lifted its stake in Eaton by 1.4% during the second quarter. Pring Turner Capital Group Inc. now owns 36,005 shares of the industrial products company’s stock worth $2,802,000 after purchasing an additional 490 shares during the last quarter. Financial Counselors Inc. lifted its stake in Eaton by 2.0% during the third quarter. Financial Counselors Inc. now owns 33,149 shares of the industrial products company’s stock worth $2,546,000 after purchasing an additional 655 shares during the last quarter. Smithfield Trust Co. lifted its stake in Eaton by 6.8% during the third quarter. Smithfield Trust Co. now owns 13,152 shares of the industrial products company’s stock worth $1,009,000 after purchasing an additional 837 shares during the last quarter. Finally, 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. 76.52% of the stock is owned by institutional investors and hedge funds.

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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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