Eaton Sees Unusually High Options Volume (NYSE:ETN)

Eaton Corporation, PLC (NYSE:ETN) was the target of unusually large options trading on Thursday. Traders purchased 40,955 call options on the company. This represents an increase of approximately 648% compared to the average daily volume of 5,476 call options.

Eaton Stock Up 0.2%

ETN stock opened at $374.45 on Friday. The stock has a market capitalization of $145.44 billion, a P/E ratio of 35.80, a P/E/G ratio of 2.58 and a beta of 1.20. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.32 and a quick ratio of 0.81. Eaton has a 1-year low of $231.85 and a 1-year high of $408.45. The business has a fifty day moving average price of $347.63 and a 200-day moving average price of $354.81.

Eaton (NYSE:ETN) last released its quarterly earnings data on Thursday, February 26th. The industrial products company reported $3.23 EPS for the quarter. Eaton had a return on equity of 25.00% and a net margin of 14.89%. Equities analysts forecast that Eaton will post 12.02 earnings per share for the current fiscal year.

Eaton Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 27th. Investors of record on Tuesday, March 10th will be issued a $1.10 dividend. This is an increase from Eaton’s previous quarterly dividend of $1.04. This represents a $4.40 annualized dividend and a yield of 1.2%. The ex-dividend date is Tuesday, March 10th. Eaton’s dividend payout ratio is 39.77%.

Insider Buying and Selling

In other news, insider Sternadt Paulo Ruiz sold 10,707 shares of the business’s stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $390.26, for a total transaction of $4,178,513.82. Following the sale, the insider owned 27,729 shares in the company, valued at approximately $10,821,519.54. The trade was a 27.86% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Corporate insiders own 0.30% of the company’s stock.

Hedge Funds Weigh In On Eaton

Hedge funds and other institutional investors have recently modified their holdings of the company. Hilton Head Capital Partners LLC bought a new stake in shares of Eaton in the fourth quarter worth $26,000. Sfam LLC purchased a new position in Eaton in the fourth quarter worth about $27,000. Eagle Bay Advisors LLC bought a new stake in shares of Eaton during the 4th quarter valued at about $29,000. WFA of San Diego LLC purchased a new stake in shares of Eaton during the 2nd quarter valued at about $36,000. Finally, Imprint Wealth LLC bought a new position in shares of Eaton in the 3rd quarter worth approximately $39,000. 82.97% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on ETN. Weiss Ratings restated a “buy (b-)” rating on shares of Eaton in a report on Wednesday, January 21st. Wells Fargo & Company upped their price target on Eaton from $340.00 to $370.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 4th. Morgan Stanley reaffirmed an “overweight” rating and set a $425.00 price objective on shares of Eaton in a research report on Wednesday, February 4th. HSBC raised Eaton from a “hold” rating to a “buy” rating and set a $400.00 target price on the stock in a report on Friday, January 16th. Finally, Barclays lowered their price target on Eaton from $362.00 to $350.00 and set an “equal weight” rating for the company in a research report on Wednesday, January 7th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Eaton presently has a consensus rating of “Moderate Buy” and a consensus price target of $389.89.

About Eaton

Eaton (NYSE: ETN) is a diversified power management company that designs, manufactures and distributes products and systems to manage electrical, hydraulic and mechanical power. The company’s offerings are used to improve energy efficiency, reliability and safety across a wide range of applications, with core capabilities in electrical distribution and control, industrial hydraulics and aerospace systems.

Its product portfolio includes switchgear, circuit breakers, transformers, power distribution units, uninterruptible power supplies and surge protection devices for electrical infrastructure, along with hydraulic pumps, valves and filtration systems for industrial and mobile equipment.