Highland Capital Management LLC Decreases Stake in Eaton Co. plc (NYSE:ETN)

Highland Capital Management LLC reduced its stake in Eaton Co. plc (NYSE:ETN) by 6.2% during the second quarter, Holdings Channel.com reports. The firm owned 25,730 shares of the industrial products company’s stock after selling 1,703 shares during the period. Highland Capital Management LLC’s holdings in Eaton were worth $8,068,000 at the end of the most recent quarter.

Several other hedge funds have also recently made changes to their positions in ETN. Tennessee Valley Asset Management Partners purchased a new position in shares of Eaton during the fourth quarter valued at approximately $25,000. LifeSteps Financial Inc. purchased a new position in shares of Eaton during the first quarter valued at approximately $25,000. Atwood & Palmer Inc. increased its stake in shares of Eaton by 142.9% during the first quarter. Atwood & Palmer Inc. now owns 85 shares of the industrial products company’s stock valued at $27,000 after buying an additional 50 shares during the period. Clear Investment Research LLC purchased a new position in shares of Eaton during the fourth quarter valued at approximately $29,000. Finally, Proffitt & Goodson Inc. purchased a new position in shares of Eaton during the second quarter valued at approximately $29,000. 82.97% of the stock is owned by hedge funds and other institutional investors.

Eaton Stock Up 0.8 %

Shares of NYSE ETN traded up $2.31 during trading on Friday, reaching $300.00. The company had a trading volume of 1,950,652 shares, compared to its average volume of 2,173,366. Eaton Co. plc has a 12-month low of $191.82 and a 12-month high of $345.19. The stock has a market cap of $119.94 billion, a PE ratio of 35.42, a P/E/G ratio of 2.47 and a beta of 1.02. The business’s 50-day moving average is $307.69 and its 200 day moving average is $310.05. The company has a quick ratio of 1.05, a current ratio of 1.56 and a debt-to-equity ratio of 0.44.

Eaton (NYSE:ETN) last released its quarterly earnings data on Thursday, August 1st. The industrial products company reported $2.73 EPS for the quarter, beating the consensus estimate of $2.61 by $0.12. Eaton had a return on equity of 21.45% and a net margin of 15.12%. The company had revenue of $6.35 billion for the quarter, compared to analysts’ expectations of $6.35 billion. As a group, equities analysts forecast that Eaton Co. plc will post 10.66 earnings per share for the current fiscal year.

Eaton Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 23rd. Investors of record on Monday, August 5th were given a dividend of $0.94 per share. The ex-dividend date was Monday, August 5th. This represents a $3.76 annualized dividend and a dividend yield of 1.25%. Eaton’s dividend payout ratio (DPR) is presently 44.39%.

Insider Activity at Eaton

In related news, insider Heath B. Monesmith sold 49,040 shares of the stock in a transaction on Thursday, August 15th. The stock was sold at an average price of $301.02, for a total transaction of $14,762,020.80. Following the sale, the insider now directly owns 71,262 shares of the company’s stock, valued at $21,451,287.24. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other Eaton news, insider Taras G. Jr. Szmagala sold 335 shares of the firm’s stock in a transaction dated Monday, August 12th. The stock was sold at an average price of $288.72, for a total value of $96,721.20. Following the transaction, the insider now directly owns 9,900 shares of the company’s stock, valued at $2,858,328. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Heath B. Monesmith sold 49,040 shares of the firm’s stock in a transaction dated Thursday, August 15th. The stock was sold at an average price of $301.02, for a total value of $14,762,020.80. Following the completion of the transaction, the insider now directly owns 71,262 shares in the company, valued at $21,451,287.24. The disclosure for this sale can be found here. 0.53% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on ETN. Wells Fargo & Company reduced their target price on Eaton from $320.00 to $315.00 and set an “equal weight” rating on the stock in a research note on Friday, August 2nd. HSBC increased their price objective on Eaton from $240.00 to $280.00 and gave the stock a “hold” rating in a report on Friday, May 3rd. Argus increased their price objective on Eaton from $290.00 to $350.00 and gave the stock a “buy” rating in a report on Thursday, May 2nd. Raymond James assumed coverage on Eaton in a report on Friday, June 28th. They issued an “outperform” rating and a $375.00 price objective for the company. Finally, Royal Bank of Canada decreased their price objective on Eaton from $376.00 to $371.00 and set an “outperform” rating for the company in a report on Friday, August 2nd. One analyst has rated the stock with a sell rating, three have given a hold rating and fourteen have issued a buy rating to the company. According to MarketBeat, Eaton currently has an average rating of “Moderate Buy” and a consensus target price of $328.00.

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.