Morningstar Investment Management LLC Grows Stock Position in Otis Worldwide Corporation $OTIS

Key Points

• Morningstar Investment Management boosted its Otis Worldwide stake by 240.5% in the first quarter, ending with 68,541 shares worth about $5.28 million.
• Institutional ownership remains very high, with hedge funds and other investors holding 88.03% of Otis’s shares, while several other funds also increased positions during the period.
• Analysts remain cautious overall: the stock carries a Hold consensus rating with an average price target of $95.45, even as Otis reported revenue above expectations and declared a quarterly dividend of $0.44 per share.

Morningstar Investment Management LLC increased its stake in shares of Otis Worldwide Corporation (NYSE:OTIS - Free Report) by 240.5% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 68,541 shares of the company's stock after purchasing an additional 48,413 shares during the quarter. Morningstar Investment Management LLC's holdings in Otis Worldwide were worth $5,283,000 at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of OTIS. Jones Financial Companies Lllp increased its stake in shares of Otis Worldwide by 3.4% during the first quarter. Jones Financial Companies Lllp now owns 9,199 shares of the company's stock worth $949,000 after buying an additional 304 shares during the period. Empowered Funds LLC raised its holdings in Otis Worldwide by 10.5% in the first quarter. Empowered Funds LLC now owns 8,988 shares of the company's stock valued at $928,000 after acquiring an additional 857 shares in the last quarter. Acadian Asset Management LLC lifted its stake in Otis Worldwide by 63.7% in the first quarter. Acadian Asset Management LLC now owns 4,045 shares of the company's stock worth $417,000 after acquiring an additional 1,574 shares during the last quarter. Baird Financial Group Inc. lifted its stake in Otis Worldwide by 7.1% in the second quarter. Baird Financial Group Inc. now owns 32,245 shares of the company's stock worth $3,193,000 after acquiring an additional 2,132 shares during the last quarter. Finally, NewEdge Advisors LLC grew its holdings in Otis Worldwide by 13.3% during the 2nd quarter. NewEdge Advisors LLC now owns 10,222 shares of the company's stock worth $1,012,000 after acquiring an additional 1,196 shares in the last quarter. Hedge funds and other institutional investors own 88.03% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on OTIS shares. Barclays dropped their price objective on shares of Otis Worldwide from $80.00 to $77.00 and set an "underweight" rating on the stock in a research report on Thursday, April 23rd. Sanford C. Bernstein decreased their price objective on shares of Otis Worldwide from $97.00 to $90.00 and set an "outperform" rating for the company in a research report on Thursday. UBS Group set a $105.00 target price on shares of Otis Worldwide in a research note on Thursday, April 23rd. Weiss Ratings downgraded shares of Otis Worldwide from a "hold (c)" rating to a "hold (c-)" rating in a research note on Friday, May 15th. Finally, Royal Bank Of Canada dropped their target price on Otis Worldwide from $110.00 to $105.00 and set an "outperform" rating on the stock in a report on Thursday, April 23rd. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $95.45.

Otis Worldwide Stock Up 1.7%

OTIS stock opened at $71.94 on Friday. The business has a 50 day moving average price of $71.95 and a 200 day moving average price of $79.97. The stock has a market cap of $27.61 billion, a price-to-earnings ratio of 18.49, a PEG ratio of 2.64 and a beta of 0.90. Otis Worldwide Corporation has a fifty-two week low of $69.16 and a fifty-two week high of $94.57.

Otis Worldwide (NYSE:OTIS - Get Free Report) last announced its quarterly earnings results on Wednesday, July 22nd. The company reported $1.01 EPS for the quarter, meeting the consensus estimate of $1.01. Otis Worldwide had a net margin of 10.17% and a negative return on equity of 28.50%. The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.76 billion. During the same period in the prior year, the firm posted $1.05 earnings per share. The firm's revenue was up 7.3% on a year-over-year basis. Otis Worldwide has set its FY 2026 guidance at 4.010-4.050 EPS. As a group, sell-side analysts anticipate that Otis Worldwide Corporation will post 4 EPS for the current year.

Otis Worldwide Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 14th will be given a $0.44 dividend. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date of this dividend is Friday, August 14th. Otis Worldwide's dividend payout ratio (DPR) is 45.24%.

Otis Worldwide News Summary

Here are the key news stories impacting Otis Worldwide this week:

• Positive Sentiment: Otis’ service segment remains the main growth driver, with modernization up 24% and maintenance trends accelerating, while backlog and order momentum in the Americas support the longer-term outlook. Otis Worldwide: Don't Expect Meaningful Upside Near-Term, But I Remain Bullish
• Positive Sentiment: Otis declared a quarterly dividend of $0.44 per share, reinforcing its cash-return profile for income-focused investors. Otis Declares Quarterly Dividend of $0.44 per Share
• Neutral Sentiment: The stock is trading below recent historical valuation levels after a sizable year-to-date decline, which may interest value investors but does not change the near-term operating challenges. Is Otis Stock Attractive After Guidance Cuts and Its 19% YTD Slide?
• Neutral Sentiment: Analysts continue to rate Otis as a “Hold,” reflecting a balanced view between steady service growth and weaker equipment demand. Otis Worldwide Corporation NYSE: OTIS Given Consensus Rating of "Hold" by Analysts
• Negative Sentiment: Recent earnings commentary points to contracting margins, weaker New Equipment demand, and continued drag from China, which is why investors are focusing on the guidance cut rather than the revenue beat. Otis Worldwide: Strong Service Growth Still Needs To Show Margin Expansion

Otis Worldwide Profile

Otis Worldwide Corporation is a manufacturer, installer and servicer of vertical transportation systems, including elevators, escalators and moving walkways. The company designs and supplies new equipment for commercial, residential and industrial buildings, and provides ongoing maintenance and repair services aimed at maximizing equipment availability and safety. Otis also offers modernization solutions to upgrade aging systems and improve performance, accessibility and energy efficiency.

In addition to new equipment sales, a significant portion of Otis's business derives from long-term service contracts and responsive maintenance work.

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