Eaton (ETN) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Eaton (NYSE:ETN) from a buy rating to a hold rating in a research note issued to investors 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.”

Several other analysts have also issued reports on ETN. Robert W. Baird raised Eaton from a neutral rating to an outperform rating and upped their target price for the stock from $82.00 to $92.00 in a research note on Wednesday. Oppenheimer reiterated a hold rating on shares of Eaton in a research report on Tuesday, October 31st. Bank of America downgraded Eaton from a buy rating to an underperform rating in a research report on Tuesday, October 17th. Morgan Stanley reiterated an overweight rating and issued a $88.00 price objective (up previously from $87.00) on shares of Eaton in a research report on Monday, October 2nd. Finally, Stifel Nicolaus reiterated a hold rating and issued a $82.00 price objective on shares of Eaton in a research report on Thursday, October 12th. Four equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating and seven have assigned a buy rating to the company’s stock. Eaton has a consensus rating of Hold and an average target price of $83.43.

Shares of Eaton (NYSE:ETN) traded up $0.62 on Wednesday, reaching $81.39. The company’s stock had a trading volume of 2,348,866 shares, compared to its average volume of 2,163,196. The stock has a market capitalization of $35,860.43, a price-to-earnings ratio of 12.78, a P/E/G ratio of 1.91 and a beta of 1.38. The company has a debt-to-equity ratio of 0.44, a quick ratio of 1.02 and a current ratio of 1.43. Eaton has a 1-year low of $66.77 and a 1-year high of $82.34.

Eaton (NYSE:ETN) last issued its earnings results on Tuesday, October 31st. The industrial products company reported $1.25 earnings per share (EPS) for the quarter, hitting the Thomson Reuters’ consensus estimate of $1.25. The business had revenue of $5.21 billion during the quarter, compared to analyst estimates of $5.12 billion. Eaton had a return on equity of 12.89% and a net margin of 14.21%. Eaton’s revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.16 earnings per share. equities research analysts anticipate that Eaton will post 4.6 EPS for the current year.

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

A number of institutional investors and hedge funds have recently bought and sold shares of ETN. Schroder Investment Management Group boosted its position in shares of Eaton by 24.4% during the second quarter. Schroder Investment Management Group now owns 3,262,517 shares of the industrial products company’s stock valued at $250,007,000 after buying an additional 640,198 shares during the last quarter. Cibc World Markets Corp boosted its position in Eaton by 34.6% in the second quarter. Cibc World Markets Corp now owns 63,203 shares of the industrial products company’s stock worth $4,919,000 after purchasing an additional 16,252 shares during the last quarter. Jarislowsky Fraser Ltd purchased a new position in Eaton in the third quarter worth about $252,000. Financial Counselors Inc. boosted its position in Eaton by 24.1% in the second quarter. Financial Counselors Inc. now owns 32,494 shares of the industrial products company’s stock worth $2,529,000 after purchasing an additional 6,319 shares during the last quarter. Finally, Lincoln National Corp boosted its position in Eaton by 26.4% in the third quarter. Lincoln National Corp now owns 45,015 shares of the industrial products company’s stock worth $3,457,000 after purchasing an additional 9,389 shares during the last quarter. Institutional investors and hedge funds own 76.51% of the company’s stock.

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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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