Eaton Corporation plc (NYSE: ETN) stock jumped 0.33% on Thursday to $222.15 against a previous-day closing price of $221.41. With 2.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.08 million shares. During the session, the Specialty Industrial Machinery company that operates in wider Industrials sector, reached to the highest price of $224.44 whereas the lowest price it dropped to was $221.12. The 52-week range on ETN shows that it touched its highest point at $240.44 and its lowest point at $129.85 during that stretch. It currently has a 1-year price target of $231.47. With its current market cap of 88.14 billion, ETN has annualized dividend of $3.44 while the current yield stands at 1.55%. 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 down-trending over the past week, with a drop of -5.39%, but this was up by 1.93% over a month. Three-month performance surged to 15.06% while six-month performance rose 39.48%. The stock gained 55.88% in the past year, while it has gained 41.54% so far this year. A look at the trailing 12-month EPS for ETN yields 6.77 with Next year EPS estimates of 9.75. For the next quarter, that number is 2.33. This implies an EPS growth rate of 15.10% for this year and 11.06% for next year. EPS is expected to grow by 12.21% 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, 398.90 million ETN shares are outstanding with a float of 397.94 million shares on hand for trading. On Aug 14, 2023, short shares totaled 3.72 million, which was 0.93% higher than short shares on Jul 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 85.25% of ETN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 45.82% of ETN, in contrast to 39.25% held by mutual funds. Shares owned by individuals account for 0.55%. As the largest shareholder in ETN with 8.68% of the stake, The Vanguard Group, Inc. holds 34,587,988 shares worth 34,587,988. A second-largest stockholder of ETN, SSgA Funds Management, Inc., holds 17,034,288 shares, controlling over 4.27% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in ETN, holding 16,931,241 shares or 4.25% stake. With a 3.11% stake in ETN, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 12,407,640 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.40% of ETN stock, is the second-largest Mutual Fund holder. It holds 9,546,440 shares valued at 1.96 billion. Government Pension Fund – Global holds 1.25% of the stake in ETN, owning 4,989,395 shares worth 1.02 billion.
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 Jun 29, 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 $270.00 and a low target of $185.00, the average target price over the next 12 months is $233.39. Based on these targets, ETN could surge 21.54% to reach the target high and fall by -16.72% to reach the target low. Reaching the average price target will result in a growth of 5.06% 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 8 Buys and 14 Sells. In these transactions, 15,045 shares were bought while 24,288 shares were sold. The number of buy transactions has increased to 70 while that of sell transactions has risen to 93 over the past year. The total number of shares bought during that period was 496,888 while 430,731 shares were sold.
