Eaton Co. plc (NYSE:ETN) Sees Significant Growth in Short Interest

Eaton Co. plc (NYSE:ETN) was the recipient of a significant growth in short interest in July. As of July 15th, there was short interest totalling 4,350,000 shares, a growth of 7.1% from the June 30th total of 4,060,000 shares. Based on an average daily trading volume, of 2,170,000 shares, the days-to-cover ratio is presently 2.0 days.

Insider Transactions at Eaton

In other Eaton news, insider Peter Denk sold 2,416 shares of the firm’s stock in a transaction that occurred on Wednesday, May 8th. The stock was sold at an average price of $331.84, for a total transaction of $801,725.44. Following the completion of the transaction, the insider now owns 5,086 shares in the company, valued at approximately $1,687,738.24. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.53% of the company’s stock.

Institutional Investors Weigh In On Eaton

Several institutional investors have recently added to or reduced their stakes in ETN. Tennessee Valley Asset Management Partners purchased a new position in shares of Eaton in the fourth quarter worth $25,000. LifeSteps Financial Inc. purchased a new stake in Eaton during the 1st quarter valued at about $25,000. Atwood & Palmer Inc. increased its holdings in shares of Eaton by 142.9% in the first 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 period. Clear Investment Research LLC purchased a new position in shares of Eaton in the fourth quarter worth about $29,000. Finally, Proffitt & Goodson Inc. acquired a new stake in shares of Eaton during the second quarter worth about $29,000. Institutional investors and hedge funds own 82.97% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the company. Argus upped their price objective on Eaton from $290.00 to $350.00 and gave the company a “buy” rating in a research report on Thursday, May 2nd. Mizuho restated a “buy” rating and issued a $355.00 price target (up from $340.00) on shares of Eaton in a research report on Wednesday, May 1st. Royal Bank of Canada raised shares of Eaton from a “sector perform” rating to an “outperform” rating and increased their target price for the company from $286.00 to $371.00 in a research note on Friday, April 5th. Barclays upped their price target on shares of Eaton from $316.00 to $318.00 and gave the company an “equal weight” rating in a report on Wednesday, July 10th. Finally, Raymond James started coverage on shares of Eaton in a research note on Friday, June 28th. They issued an “outperform” rating and a $375.00 price objective for the company. One equities research analyst has rated the stock with a sell rating, three have issued a hold rating and fourteen have given a buy rating to the stock. According to MarketBeat.com, Eaton has a consensus rating of “Moderate Buy” and a consensus price target of $323.06.

Eaton Stock Down 2.6 %

Shares of ETN stock traded down $7.85 during mid-day trading on Thursday, hitting $296.94. 4,022,403 shares of the stock traded hands, compared to its average volume of 2,121,836. The stock’s fifty day moving average is $319.95 and its two-hundred day moving average is $304.83. The company has a debt-to-equity ratio of 0.42, a current ratio of 1.56 and a quick ratio of 1.05. Eaton has a 52-week low of $191.82 and a 52-week high of $345.19. The stock has a market cap of $118.72 billion, a P/E ratio of 35.98, a P/E/G ratio of 2.40 and a beta of 1.02.

Eaton (NYSE:ETN) last posted its earnings results on Tuesday, April 30th. The industrial products company reported $2.40 EPS for the quarter, beating analysts’ consensus estimates of $2.28 by $0.12. The company had revenue of $5.94 billion during the quarter, compared to analysts’ expectations of $5.91 billion. Eaton had a net margin of 14.38% and a return on equity of 20.69%. Eaton’s revenue for the quarter was up 8.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.88 earnings per share. Equities analysts predict that Eaton will post 10.56 EPS for the current year.

Eaton Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 23rd. Investors of record on Monday, August 5th will be paid a dividend of $0.94 per share. The ex-dividend date is Monday, August 5th. This represents a $3.76 annualized dividend and a yield of 1.27%. Eaton’s dividend payout ratio (DPR) is 44.39%.

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.