Handle With Care: Eaton Corporation plc (NYSE: ETN)

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BlackRock Fund Advisors recently announced the acquisition of new stake in Eaton Corporation plc (NYSE:ETN). The institutional investor has increased its shareholding in the Industrials company by 1.05% to 21.55 million shares with purchase of 0.22 million shares. This fresh investment now brings its stake to 5.39% valued currently at $1.88 billion. In addition, Massachusetts Financial Services. raised its holdings by 56850.0 to 15.68 million shares. And JPMorgan Investment Management, I. has lifted its position by 25.83% or 2.45 million shares – to 11.93 million shares.

With over 1.94 million Eaton Corporation plc (ETN) shares trading Wednesday and a closing price of $96.89 on the day, the dollar volume was approximately $187.57 million. The shares have shown a negative weekly performance of -0.24% and its price on 07/28/20 gained nearly 3.80%. Currently, there are 409.30M common shares owned by the public and among those 399.07M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 23 analysts who have offered their price forecasts for ETN have a consensus price objective of $96.16. The analysts have set the share’s price value over the next 12 months at a high of $108.00 and a low of $81.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Eaton Corporation plc stock is 2.20 for the next 12 months. The average price target is -2.05% below its last price level and a downside to the estimated low will see the stock lose -19.62% over that period. But an upside of 10.29% will see the stock hit the forecast high price target while mean target price for the stock is $95.00.

Insiders at the company have transacted a total of 127 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 56 of these insider trades were purchases, accounting for 373,648 shares. Insider sales of the common stock occurred on 71 occasions, with total insider shares sold totaling 408,364 shares.

The top 3 mutual fund holders in Eaton Corporation plc are Vanguard Total Stock Market Index, Government Pension Fund – Global, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 11.4 million shares of the company’s stock, all valued at over $996.94 million. The company sold -0.53 million shares recently to bring their total holdings to about 2.85% of the shares outstanding. Government Pension Fund – Global bought 1.01 million shares to see its total holdings expand to 8.5 million shares valued at over $743.64 million and representing 2.13% of the shares outstanding. Vanguard 500 Index Fund sold -0.14 million shares to bring its total holdings to over 8.3 million shares at a value of $725.95 million. Vanguard 500 Index Fund now owns shares totaling to 2.08% of the shares outstanding.

Shares of Eaton Corporation plc (NYSE: ETN) opened at $94.76, up $1.42 from a prior closing price of $93.34. However, the script later closed the day at $96.89, up 3.80%. The company’s stock has a 5-day price change of -0.24% and 12.32% over the past three months. ETN shares are trading -1.46% year to date (YTD), with the 12-month market performance up to 15.14% higher. It has a 12-month low price of $56.42 and touched a high of $105.78 over the same period. Currently, 1.94 million shares have been traded, compared to an average intraday trading volume of 2.19 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 6.80%, 10.08%, and 9.78% respectively.

Institutional ownership of Eaton Corporation plc (NYSE: ETN) shares accounts for 83.20% of the company’s 409.30M shares outstanding. Mutual fund holders own 37.18%, while other institutional holders and individual stakeholders account for 44.49% and 0.49% respectively.

It has a market capitalization of $37.42B and a beta (3y monthly) value of 1.16. The stock’s trailing 12-month PE ratio is 18.33, while the earnings-per-share (ttm) stands at $5.09. The company has a PEG of 8.23 and a Quick Ratio of 1.30 with the debt-to-equity ratio at 0.59. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.81% over the week and 2.23% over the month.

Analysts forecast that Eaton Corporation plc (ETN) will achieve an EPS of $0.53 for the current quarter, $0.91 for the next quarter and $4.7 for 2021. The lowest estimate earnings-per-share for the quarter is $0.37 while analysts give the company a high EPS estimate of $0.64. Comparatively, EPS for the current quarter was $1.53 a year ago. Earnings per share for the fiscal year are expected to increase by 7.00%, and 28.91% over the next financial year. EPS should shrink at an annualized rate of 2.23% over the next five years, compared to 6.90% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 23 brokerage firm advisors rate Eaton Corporation plc (ETN) as a “Moderate Buy” at a consensus score of 2.20. Specifically, 14 Wall Street analysts polled rate the stock as a buy, while 9 of the 23 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the ETN, a number of firms have released research notes about the stock. BofA/Merrill stated their Neutral rating for the stock in a research note on May 26, 2020, with the firm’s price target at. KeyBanc Capital Markets coverage for the Eaton Corporation plc (ETN) stock in a research note released on May 14, 2020 offered a Sector Weight rating with a price target of. Stephens was of a view on May 04, 2020 that the stock is Equal-Weight, while JP Morgan gave the stock Neutral rating on April 13, 2020, issuing a price target of $110- $91. Gordon Haskett on their part issued Buy rating on April 03, 2020.

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