Eaton (NYSE:ETN) Shares Gap Down – What’s Next?

Eaton Co. plc (NYSE:ETN)’s share price gapped down prior to trading on Monday . The stock had previously closed at $368.98, but opened at $329.49. Eaton shares last traded at $320.54, with a volume of 2,426,287 shares.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Royal Bank of Canada raised their price target on shares of Eaton from $374.00 to $392.00 and gave the company an “outperform” rating in a report on Friday, January 3rd. Melius downgraded Eaton from a “buy” rating to a “hold” rating and set a $373.00 target price on the stock. in a research note on Tuesday. Wells Fargo & Company decreased their price target on Eaton from $365.00 to $350.00 and set an “equal weight” rating for the company in a research note on Tuesday, January 7th. Sanford C. Bernstein began coverage on Eaton in a research note on Tuesday, November 5th. They set an “outperform” rating and a $382.00 price target on the stock. Finally, Melius Research reissued a “hold” rating and set a $373.00 target price on shares of Eaton in a research report on Tuesday. Six investment analysts have rated the stock with a hold rating and thirteen have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, Eaton currently has an average rating of “Moderate Buy” and a consensus price target of $369.30.

Eaton Stock Performance

The firm has a 50-day moving average of $351.98 and a two-hundred day moving average of $331.21. The company has a market capitalization of $123.41 billion, a PE ratio of 33.22, a PEG ratio of 2.57 and a beta of 1.06. The company has a quick ratio of 1.00, a current ratio of 1.53 and a debt-to-equity ratio of 0.45.

Eaton (NYSE:ETN) last announced its quarterly earnings results on Thursday, October 31st. The industrial products company reported $2.84 earnings per share for the quarter, beating the consensus estimate of $2.80 by $0.04. Eaton had a return on equity of 21.97% and a net margin of 15.32%. The firm had revenue of $6.35 billion during the quarter, compared to analyst estimates of $6.37 billion. During the same quarter in the previous year, the business earned $2.47 EPS. Eaton’s revenue for the quarter was up 7.9% compared to the same quarter last year. Research analysts anticipate that Eaton Co. plc will post 10.79 EPS for the current year.

Insider Activity at Eaton

In related news, Director Gregory R. Page sold 4,000 shares of Eaton stock in a transaction dated Friday, November 1st. The stock was sold at an average price of $335.30, for a total value of $1,341,200.00. Following the sale, the director now directly owns 51,422 shares in the company, valued at approximately $17,241,796.60. The trade was a 7.22 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Ernest W. Marshall, Jr. sold 1,412 shares of the business’s stock in a transaction on Monday, November 25th. The stock was sold at an average price of $378.58, for a total value of $534,554.96. Following the transaction, the insider now directly owns 31,200 shares in the company, valued at $11,811,696. This trade represents a 4.33 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 76,981 shares of company stock valued at $27,660,117. 0.53% of the stock is owned by company insiders.

Institutional Trading of Eaton

Several institutional investors have recently made changes to their positions in the company. Wingate Wealth Advisors Inc. purchased a new position in Eaton in the fourth quarter worth approximately $161,000. Ferguson Wellman Capital Management Inc. grew its holdings in shares of Eaton by 3.0% during the 4th quarter. Ferguson Wellman Capital Management Inc. now owns 158,688 shares of the industrial products company’s stock worth $52,664,000 after purchasing an additional 4,664 shares during the period. Canvas Wealth Advisors LLC grew its holdings in shares of Eaton by 4.0% during the 4th quarter. Canvas Wealth Advisors LLC now owns 1,129 shares of the industrial products company’s stock worth $375,000 after purchasing an additional 43 shares during the period. Activest Wealth Management raised its holdings in Eaton by 621.4% in the 4th quarter. Activest Wealth Management now owns 101 shares of the industrial products company’s stock valued at $34,000 after buying an additional 87 shares during the period. Finally, Washburn Capital Management Inc. acquired a new position in Eaton in the fourth quarter valued at about $209,000. Hedge funds and other institutional investors own 82.97% of the company’s stock.

Eaton Company Profile

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.