Fintel reports that on July 12, 2023, Morgan Stanley maintained coverage of Eaton (NYSE:ETN) with a Overweight recommendation.
Analyst Price Forecast Suggests 0.73% Upside
As of July 6, 2023, the average one-year price target for Eaton is 203.40. The forecasts range from a low of 160.59 to a high of $241.50. The average price target represents an increase of 0.73% from its latest reported closing price of 201.92.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Eaton is 22,101MM, an increase of 3.31%. The projected annual non-GAAP EPS is 8.33.
Eaton Declares $0.86 Dividend
On April 25, 2023 the company declared a regular quarterly dividend of $0.86 per share ($3.44 annualized). Shareholders of record as of May 8, 2023 received the payment on May 26, 2023. Previously, the company paid $0.86 per share.
At the current share price of $201.92 / share, the stock's dividend yield is 1.70%.
Looking back five years and taking a sample every week, the average dividend yield has been 2.70%, the lowest has been 1.69%, and the highest has been 5.05%. The standard deviation of yields is 0.69 (n=236).
The current dividend yield is 1.45 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.53. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.18%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 2515 funds or institutions reporting positions in Eaton. This is an increase of 95 owner(s) or 3.93% in the last quarter. Average portfolio weight of all funds dedicated to ETN is 0.42%, an increase of 6.08%. Total shares owned by institutions decreased in the last three months by 0.10% to 377,497K shares. 
The put/call ratio of ETN is 0.76, indicating a bullish outlook.
What are Other Shareholders Doing?
Jpmorgan Chase holds 19,311K shares representing 4.84% ownership of the company. In it's prior filing, the firm reported owning 21,380K shares, representing a decrease of 10.71%. The firm decreased its portfolio allocation in ETN by 88.56% over the last quarter.
Massachusetts Financial Services holds 14,591K shares representing 3.66% ownership of the company. In it's prior filing, the firm reported owning 12,880K shares, representing an increase of 11.73%. The firm decreased its portfolio allocation in ETN by 81.41% over the last quarter.
Bank Of America holds 14,162K shares representing 3.55% ownership of the company. In it's prior filing, the firm reported owning 13,399K shares, representing an increase of 5.39%. The firm decreased its portfolio allocation in ETN by 73.46% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 12,328K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 12,095K shares, representing an increase of 1.89%. The firm increased its portfolio allocation in ETN by 2.75% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 9,280K shares representing 2.33% ownership of the company. In it's prior filing, the firm reported owning 9,194K shares, representing an increase of 0.93%. The firm increased its portfolio allocation in ETN by 2.19% over the last quarter.
Eaton Background Information
(This description is provided by the company.)
Eaton's mission is to improve the quality of life and the environment through the use of power management technologies and services. The Company provides sustainable solutions that help our customers effectively manage electrical, hydraulic, and mechanical power - more safely, more efficiently, and more reliably. Eaton's 2020 revenues were $17.9 billion, and it sells products to customers in more than 175 countries. The Company has approximately 92,000 employees.
Additional reading:
- EATON CORPORATION each of the Guarantors as defined herein THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee THIRD SUPPLEMENTAL INDENTURE Dated as of May 18, 2023 Indenture dated as of August 23, 2022 $500,000,000 4.350% Notes due 2028 TABL
- Eaton Reports Record First Quarter 2023 Results
- Subsidiaries of Eaton Corporation plc - Filed in conjunction with this Form 10-K Report *
- Table of Senior Notes, Issuer and Guarantors
- Power of Attorney - Filed in conjunction with this Form 10-K Report *
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
