Otis Worldwide Corporation $OTIS Stake Lowered by Hsbc Holdings PLC

Key Points

• Hsbc Holdings PLC reduced its Otis Worldwide stake by 13.1% in the first quarter, selling 114,410 shares and ending with 755,635 shares valued at about $58.2 million.
• Otis reported mixed quarterly results, with EPS of $0.89 missing estimates and revenue of $3.57 billion below expectations, even though sales rose 6.4% year over year.
• The company raised its dividend to $0.44 per share quarterly, or $1.76 annually, for a yield of about 2.4%, while analysts currently maintain a consensus rating of “Hold.”

Hsbc Holdings PLC lowered its position in Otis Worldwide Corporation (NYSE:OTIS - Free Report) by 13.1% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 755,635 shares of the company's stock after selling 114,410 shares during the quarter. Hsbc Holdings PLC owned approximately 0.20% of Otis Worldwide worth $58,178,000 at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of the business. Camelot Portfolios LLC acquired a new position in Otis Worldwide during the fourth quarter worth $26,000. Garton & Associates Financial Advisors LLC acquired a new position in shares of Otis Worldwide during the fourth quarter worth approximately $27,000. Elevation Wealth Partners LLC acquired a new position in Otis Worldwide during the 4th quarter valued at $32,000. Kohmann Bosshard Financial Services LLC bought a new stake in shares of Otis Worldwide in the fourth quarter valued at about $33,000. Finally, Reflection Asset Management bought a new stake in shares of Otis Worldwide in the 4th quarter worth approximately $34,000. Institutional investors and hedge funds own 88.03% of the company's stock.

Otis Worldwide Price Performance

Shares of NYSE OTIS opened at $73.50 on Monday. The business has a 50-day moving average of $72.09 and a 200-day moving average of $80.48. The stock has a market capitalization of $28.20 billion, a price-to-earnings ratio of 19.55, 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 $101.14.

Otis Worldwide (NYSE:OTIS - Get Free Report) last announced its quarterly earnings data on Wednesday, April 22nd. The company reported $0.89 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.91 by ($0.02). The company had revenue of $3.57 billion for the quarter, compared to the consensus estimate of $3.77 billion. Otis Worldwide had a negative return on equity of 29.39% and a net margin of 10.11%.The company's revenue for the quarter was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.92 EPS. Otis Worldwide has set its FY 2026 guidance at 4.200-4.240 EPS. On average, sell-side analysts expect that Otis Worldwide Corporation will post 4.16 EPS for the current year.

Otis Worldwide Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 15th were given a dividend of $0.44 per share. This represents a $1.76 dividend on an annualized basis and a yield of 2.4%. This is a boost from Otis Worldwide's previous quarterly dividend of $0.42. The ex-dividend date of this dividend was Friday, May 15th. Otis Worldwide's dividend payout ratio (DPR) is presently 46.81%.

Analysts Set New Price Targets

OTIS has been the topic of several recent research reports. Evercore assumed coverage on shares of Otis Worldwide in a research report on Monday, April 13th. They set an "outperform" rating and a $100.00 target price on the stock. Wolfe Research lowered Otis Worldwide from an "outperform" rating to a "peer perform" rating in a research note on Wednesday, April 8th. Weiss Ratings cut shares of Otis Worldwide from a "hold (c)" rating to a "hold (c-)" rating in a research report on Friday, May 15th. Wells Fargo & Company cut their target price on shares of Otis Worldwide from $92.00 to $80.00 and set an "equal weight" rating on the stock in a research report on Wednesday, April 1st. Finally, Sanford C. Bernstein started coverage on shares of Otis Worldwide in a research report on Tuesday, June 9th. They issued an "outperform" rating and a $97.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $96.55.

About Otis Worldwide

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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