Bank of New York Mellon Corp Makes New Investment in Otter Tail Corporation $OTTR

Key Points

• Bank of New York Mellon acquired 358,275 Otter Tail shares worth approximately $32.2 million, representing about 0.85% of the utility company. Institutional investors collectively own 61.32% of OTTR.
• Analyst sentiment remains cautious: four analysts rate the stock Hold and one rates it Sell, producing an average “Reduce” rating and an $86 price target.
• Otter Tail exceeded quarterly earnings expectations, reporting $1.66 per share versus the $1.51 consensus estimate, while declaring a quarterly dividend of $0.5775 per share, or $2.31 annually.

Bank of New York Mellon Corp bought a new position in Otter Tail Corporation (NASDAQ:OTTR - Free Report) in the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 358,275 shares of the utilities provider's stock, valued at approximately $32,238,000. Bank of New York Mellon Corp owned approximately 0.85% of Otter Tail as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently modified their holdings of the business. LSV Asset Management boosted its holdings in Otter Tail by 217.6% in the 4th quarter. LSV Asset Management now owns 536,941 shares of the utilities provider's stock worth $43,390,000 after buying an additional 367,869 shares during the period. Adage Capital Partners GP L.L.C. lifted its position in shares of Otter Tail by 108.6% during the fourth quarter. Adage Capital Partners GP L.L.C. now owns 344,149 shares of the utilities provider's stock worth $27,811,000 after acquiring an additional 179,149 shares in the last quarter. Two Sigma Investments LP boosted its holdings in shares of Otter Tail by 465.2% in the third quarter. Two Sigma Investments LP now owns 137,624 shares of the utilities provider's stock worth $11,281,000 after acquiring an additional 113,276 shares during the period. Jane Street Group LLC boosted its holdings in shares of Otter Tail by 244.2% in the fourth quarter. Jane Street Group LLC now owns 139,137 shares of the utilities provider's stock worth $11,244,000 after acquiring an additional 98,719 shares during the period. Finally, Bank of America Corp DE grew its position in shares of Otter Tail by 31.6% in the second quarter. Bank of America Corp DE now owns 409,157 shares of the utilities provider's stock valued at $31,542,000 after purchasing an additional 98,243 shares in the last quarter. Institutional investors own 61.32% of the company's stock.

Analysts Set New Price Targets

Several equities analysts recently commented on OTTR shares. Weiss Ratings raised shares of Otter Tail from a "hold (c)" rating to a "hold (c+)" rating in a research note on Monday, August 24th. Zacks Research downgraded shares of Otter Tail from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 27th. UBS Group restated a "reduce" rating on shares of Otter Tail in a research report on Friday, May 29th. KeyCorp reaffirmed a "sector weight" rating on shares of Otter Tail in a report on Monday, June 1st. Finally, Siebert Williams Shank downgraded Otter Tail from a "buy" rating to a "hold" rating and set a $86.00 price objective on the stock. in a research report on Wednesday, May 6th. Four equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Reduce" and an average price target of $86.00.

Otter Tail Stock Down 0.9%

Shares of NASDAQ OTTR opened at $90.84 on Friday. The company has a current ratio of 1.71, a quick ratio of 1.36 and a debt-to-equity ratio of 0.60. The business has a 50-day moving average of $91.17 and a 200-day moving average of $88.81. The firm has a market capitalization of $3.81 billion, a price-to-earnings ratio of 19.58 and a beta of 0.45. Otter Tail Corporation has a 12 month low of $74.15 and a 12 month high of $95.09.

Otter Tail (NASDAQ:OTTR - Get Free Report) last announced its earnings results on Monday, August 3rd. The utilities provider reported $1.66 earnings per share for the quarter, beating analysts' consensus estimates of $1.51 by $0.15. Otter Tail had a net margin of 14.83% and a return on equity of 14.56%. The business had revenue of $334.38 million for the quarter, compared to the consensus estimate of $326.13 million. During the same period last year, the firm posted $1.85 earnings per share. Otter Tail's quarterly revenue was up .4% on a year-over-year basis. Otter Tail has set its FY 2026 guidance at 5.680-6.080 EPS. Sell-side analysts expect that Otter Tail Corporation will post 5.88 earnings per share for the current fiscal year.

Otter Tail Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Friday, August 14th will be issued a dividend of $0.5775 per share. This represents a $2.31 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, August 14th. Otter Tail's payout ratio is currently 49.78%.

About Otter Tail

Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company's service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.

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