Eaton Co. plc (NYSE:ETN) Sees Large Increase in Short Interest

Eaton Co. plc (NYSE:ETN) was the target of a significant increase in short interest in July. As of July 31st, there was short interest totalling 4,600,000 shares, an increase of 5.7% from the July 15th total of 4,350,000 shares. Based on an average daily trading volume, of 2,410,000 shares, the days-to-cover ratio is currently 1.9 days. Approximately 1.2% of the company’s stock are sold short.

Wall Street Analysts Forecast Growth

Several equities research analysts recently issued reports on ETN shares. HSBC raised their target price on shares of Eaton from $240.00 to $280.00 and gave the company a “hold” rating in a research note on Friday, May 3rd. Royal Bank of Canada reduced their target price on Eaton from $376.00 to $371.00 and set an “outperform” rating for the company in a research note on Friday, August 2nd. Raymond James started coverage on Eaton in a research note on Friday, June 28th. They issued an “outperform” rating and a $375.00 price target on the stock. Barclays upped their price objective on shares of Eaton from $318.00 to $319.00 and gave the company an “equal weight” rating in a report on Friday, August 2nd. Finally, Mizuho reissued a “buy” rating and issued a $355.00 price objective (up from $340.00) on shares of Eaton in a research report on Wednesday, May 1st. One analyst has rated the stock with a sell rating, three have assigned a hold rating and fourteen have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $326.53.

Eaton Price Performance

Shares of ETN traded down $5.78 during trading hours on Friday, hitting $296.68. 2,768,158 shares of the company were exchanged, compared to its average volume of 2,188,878. The company has a quick ratio of 1.05, a current ratio of 1.56 and a debt-to-equity ratio of 0.44. Eaton has a fifty-two week low of $191.82 and a fifty-two week high of $345.19. The company has a market cap of $118.61 billion, a price-to-earnings ratio of 35.03, a P/E/G ratio of 2.47 and a beta of 1.02. The firm’s fifty day moving average is $310.21 and its 200 day moving average is $309.05.

Eaton Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, August 23rd. Shareholders of record on Monday, August 5th will be issued a $0.94 dividend. This represents a $3.76 annualized dividend and a yield of 1.27%. The ex-dividend date is Monday, August 5th. Eaton’s dividend payout ratio is currently 44.39%.

Insider Buying and Selling

In other news, insider Heath B. Monesmith sold 49,040 shares of Eaton stock in a transaction that occurred on Thursday, August 15th. The shares were sold at an average price of $301.02, for a total value of $14,762,020.80. Following the sale, the insider now directly owns 71,262 shares in the company, valued at $21,451,287.24. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. In related news, insider Taras G. Jr. Szmagala sold 335 shares of the stock in a transaction that occurred on Monday, August 12th. The stock was sold at an average price of $288.72, for a total transaction of $96,721.20. Following the completion of the transaction, the insider now directly owns 9,900 shares of the company’s stock, valued at $2,858,328. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Heath B. Monesmith sold 49,040 shares of the business’s stock in a transaction that occurred on Thursday, August 15th. The stock was sold at an average price of $301.02, for a total value of $14,762,020.80. Following the transaction, the insider now directly owns 71,262 shares in the company, valued at approximately $21,451,287.24. The disclosure for this sale can be found here. 0.53% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Eaton

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Tennessee Valley Asset Management Partners acquired a new stake in Eaton in the fourth quarter valued at about $25,000. LifeSteps Financial Inc. bought a new position in shares of Eaton in the first quarter worth about $25,000. Breakwater Investment Management boosted its stake in shares of Eaton by 1,560.0% in the 2nd quarter. Breakwater Investment Management now owns 83 shares of the industrial products company’s stock valued at $26,000 after purchasing an additional 78 shares in the last quarter. Atwood & Palmer Inc. grew its holdings in shares of Eaton by 142.9% during the 1st quarter. Atwood & Palmer Inc. now owns 85 shares of the industrial products company’s stock valued at $27,000 after purchasing an additional 50 shares during the last quarter. Finally, Clear Investment Research LLC acquired a new position in Eaton during the 4th quarter worth approximately $29,000. 82.97% of the stock is currently owned by institutional investors and hedge funds.

About Eaton

Eaton Corporation plc operates as a power management company worldwide. The company's Electrical Americas and Electrical Global segment provides electrical components, industrial components, power distribution and assemblies, residential products, single and three phase power quality and connectivity products, wiring devices, circuit protection products, utility power distribution products, power reliability equipment, and services, as well as hazardous duty electrical equipment, emergency lighting, fire detection, explosion-proof instrumentation, and structural support systems.