Eaton (NYSE:ETN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday, January 3rd.

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.”

A number of other brokerages have also recently issued reports on ETN. Citigroup increased their price objective on shares of Eaton from $90.00 to $92.00 and gave the stock a “buy” rating in a research note on Thursday, November 2nd. Jefferies Group increased their price objective on shares of Eaton from $70.00 to $80.00 and gave the stock a “hold” rating in a research note on Wednesday, November 1st. Credit Suisse Group reissued an “outperform” rating and issued a $92.00 price objective (up from $86.00) on shares of Eaton in a research note on Wednesday, November 1st. Oppenheimer reissued a “hold” rating on shares of Eaton in a research note on Tuesday, October 31st. Finally, Buckingham Research started coverage on shares of Eaton in a research note on Tuesday, October 17th. They issued a “neutral” rating and a $82.00 price objective for the company. Five analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $83.67.

Eaton (ETN) opened at $85.19 on Wednesday. The company has a debt-to-equity ratio of 0.44, a current ratio of 1.43 and a quick ratio of 1.02. Eaton has a 52-week low of $69.41 and a 52-week high of $86.82. The firm has a market cap of $38,110.00, a P/E ratio of 19.38, a price-to-earnings-growth ratio of 2.04 and a beta of 1.38.

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

In other news, insider Revathi Advaithi sold 23,743 shares of the firm’s stock in a transaction dated Thursday, November 9th. The shares were sold at an average price of $78.36, for a total value of $1,860,501.48. Following the completion of the sale, the insider now owns 31,028 shares in the company, valued at approximately $2,431,354.08. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 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 transaction of $327,765.33. Following the completion of the sale, 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. Insiders have sold 58,938 shares of company stock valued at $4,597,529 in the last quarter. 0.80% of the stock is owned by company insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Harfst & Associates Inc. lifted its holdings in shares of Eaton by 21.8% in the 2nd quarter. Harfst & Associates Inc. now owns 1,798 shares of the industrial products company’s stock worth $139,000 after acquiring an additional 322 shares during the last quarter. Pring Turner Capital Group Inc. lifted its holdings in Eaton by 1.4% during the 2nd quarter. Pring Turner Capital Group Inc. now owns 36,005 shares of the industrial products company’s stock valued at $2,802,000 after buying an additional 490 shares in the last quarter. Financial Counselors Inc. lifted its holdings in Eaton by 2.0% during the 3rd quarter. Financial Counselors Inc. now owns 33,149 shares of the industrial products company’s stock valued at $2,546,000 after buying an additional 655 shares in the last quarter. Smithfield Trust Co. lifted its holdings in Eaton by 6.8% during the 3rd quarter. Smithfield Trust Co. now owns 13,152 shares of the industrial products company’s stock valued at $1,009,000 after buying an additional 837 shares in the last quarter. Finally, Cable Hill Partners LLC lifted its holdings in Eaton by 174.8% during the 3rd quarter. Cable Hill Partners LLC now owns 1,363 shares of the industrial products company’s stock valued at $105,000 after buying an additional 867 shares in the last quarter. Hedge funds and other institutional investors own 76.60% 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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