Eaton Corporation plc (NYSE: ETN) stock jumped 5.22% on Thursday to $176.95 against a previous-day closing price of $168.17. With 3.88 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.09 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $177.30 whereas the lowest price it dropped to was $172.67. The 52-week range on ETN shows that it touched its highest point at $178.75 and its lowest point at $122.50 during that stretch. It currently has a 1-year price target of $191.29. With its current market cap of 70.72 billion, ETN has annualized dividend of $3.44 while the current yield stands at 1.94%. Beta for the stock currently stands at 1.11.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of ETN was up-trending over the past week, with a rise of 1.34%, but this was up by 9.28% over a month. Three-month performance surged to 2.14% while six-month performance rose 6.29%. The stock gained 32.22% in the past year, while it has gained 12.74% so far this year. A look at the trailing 12-month EPS for ETN yields 6.41 with Next year EPS estimates of 9.32. For the next quarter, that number is 2.10. This implies an EPS growth rate of 15.10% for this year and 10.39% for next year. EPS is expected to grow by 9.51% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -1.20%.
Float and Shares Shorts:
At present, 398.50 million ETN shares are outstanding with a float of 396.20 million shares on hand for trading. On May 14, 2023, short shares totaled 4.53 million, which was 1.14% higher than short shares on Apr 13, 2023. In addition to Mr. Craig Arnold as the firm’s Chairman & CEO, Mr. Thomas B. Okray serves as its Exec. VP & CFO.
Institutional Ownership:
Through their ownership of 84.01% of ETN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 44.13% of ETN, in contrast to 41.83% held by mutual funds. Shares owned by individuals account for 0.55%. As the largest shareholder in ETN with 8.66% of the stake, The Vanguard Group, Inc. holds 34,454,941 shares worth 34,454,941. A second-largest stockholder of ETN, BlackRock Fund Advisors, holds 16,965,931 shares, controlling over 4.26% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in ETN, holding 16,538,340 shares or 4.16% stake. With a 3.11% stake in ETN, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 12,376,098 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.35% of ETN stock, is the second-largest Mutual Fund holder. It holds 9,334,625 shares valued at 1.56 billion. MFS Value Fund holds 1.29% of the stake in ETN, owning 5,149,741 shares worth 860.62 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, ETN reported revenue of $5.21B and operating income of $711.00M. The EBITDA in the recently reported quarter was $751.00M and diluted EPS was $1.50.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ETN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ETN analysts setting a high price target of $221.00 and a low target of $159.00, the average target price over the next 12 months is $192.59. Based on these targets, ETN could surge 24.89% to reach the target high and fall by -10.14% to reach the target low. Reaching the average price target will result in a growth of 8.84% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded ETN stock several times over the past three months with 4 Buys and 9 Sells. In these transactions, 8,821 shares were bought while 37,170 shares were sold. The number of buy transactions has increased to 57 while that of sell transactions has risen to 68 over the past year. The total number of shares bought during that period was 277,007 while 204,382 shares were sold.
