BlackRock Inc. Acquires New Position in Otter Tail Corporation $OTTR

Key Points

• BlackRock acquired a 15.62% stake in Otter Tail, purchasing 6.56 million shares valued at approximately $590.1 million during the second quarter. Institutional investors collectively own 61.32% of the utility company.
• Otter Tail reported quarterly earnings of $1.66 per share, exceeding analyst expectations of $1.51, while revenue reached $334.38 million. The company issued fiscal 2026 EPS guidance of $5.68–$6.08.
• The company declared a quarterly dividend of $0.5775 per share, equivalent to an annualized $2.31 dividend and a 2.5% yield. Analysts remain cautious, with four Hold ratings and one Sell rating, producing an average target price of $86 versus the stock’s $90.86 opening price.

BlackRock Inc. acquired a new stake in Otter Tail Corporation (NASDAQ:OTTR - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund acquired 6,557,596 shares of the utilities provider's stock, valued at approximately $590,053,000. BlackRock Inc. owned approximately 15.62% of Otter Tail at the end of the most recent quarter.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in OTTR. Sound Income Strategies LLC boosted its position in shares of Otter Tail by 248.8% during the 1st quarter. Sound Income Strategies LLC now owns 286 shares of the utilities provider's stock worth $25,000 after purchasing an additional 204 shares in the last quarter. EverSource Wealth Advisors LLC boosted its holdings in Otter Tail by 129.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 376 shares of the utilities provider's stock worth $30,000 after buying an additional 212 shares in the last quarter. Caitong International Asset Management Co. Ltd acquired a new position in Otter Tail during the fourth quarter worth about $31,000. Motiv8 Investments LLC acquired a new position in Otter Tail during the fourth quarter worth about $34,000. Finally, Birchwood Financial Partners Inc. purchased a new position in Otter Tail in the fourth quarter valued at about $40,000. Institutional investors and hedge funds own 61.32% of the company's stock.

Otter Tail Price Performance

OTTR stock opened at $90.86 on Monday. The stock has a market capitalization of $3.82 billion, a P/E ratio of 19.58 and a beta of 0.45. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.36 and a current ratio of 1.71. Otter Tail Corporation has a one year low of $74.15 and a one year high of $95.09. The company has a 50 day moving average price of $90.79 and a two-hundred day moving average price of $88.68.

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

Otter Tail Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, September 10th. Shareholders of record on Friday, August 14th will be issued a $0.5775 dividend. The ex-dividend date is Friday, August 14th. This represents a $2.31 annualized dividend and a yield of 2.5%. Otter Tail's payout ratio is 49.78%.

Analysts Set New Price Targets

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

Otter Tail Profile

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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