Gates Capital Management Inc. Sells 65,000 Shares of Otis Worldwide Co. (NYSE:OTIS)

Gates Capital Management Inc. cut its holdings in Otis Worldwide Co. (NYSE:OTIS - Free Report) by 7.9% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 761,748 shares of the company's stock after selling 65,000 shares during the period. Otis Worldwide comprises approximately 1.3% of Gates Capital Management Inc.'s investment portfolio, making the stock its 24th biggest holding. Gates Capital Management Inc. owned approximately 0.19% of Otis Worldwide worth $70,545,000 at the end of the most recent quarter.

Several other hedge funds also recently modified their holdings of the stock. Transce3nd LLC bought a new position in Otis Worldwide in the fourth quarter valued at approximately $25,000. Aster Capital Management DIFC Ltd bought a new stake in Otis Worldwide in the fourth quarter valued at approximately $28,000. Fortitude Family Office LLC raised its stake in Otis Worldwide by 485.5% during the fourth quarter. Fortitude Family Office LLC now owns 322 shares of the company's stock worth $30,000 after buying an additional 267 shares during the last quarter. Centricity Wealth Management LLC bought a new stake in shares of Otis Worldwide during the 4th quarter valued at about $33,000. Finally, Golden State Wealth Management LLC bought a new stake in shares of Otis Worldwide in the 4th quarter valued at $34,000. Institutional investors own 88.03% of the company's stock.

Insider Activity

In other Otis Worldwide news, insider Montlivault Stephane De sold 6,660 shares of the stock in a transaction dated Monday, March 10th. The stock was sold at an average price of $105.30, for a total value of $701,298.00. Following the transaction, the insider now owns 63,931 shares of the company's stock, valued at approximately $6,731,934.30. This represents a 9.43% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Corporate insiders own 0.23% of the company's stock.

Otis Worldwide Stock Performance

OTIS traded down $0.57 on Tuesday, reaching $97.44. The company had a trading volume of 333,965 shares, compared to its average volume of 2,273,184. The business has a 50 day simple moving average of $98.45 and a 200 day simple moving average of $97.66. The company has a market cap of $38.46 billion, a price-to-earnings ratio of 24.03 and a beta of 1.01. Otis Worldwide Co. has a 52-week low of $89.70 and a 52-week high of $106.83.

Otis Worldwide (NYSE:OTIS - Get Free Report) last released its earnings results on Wednesday, April 23rd. The company reported $0.92 earnings per share for the quarter, topping analysts' consensus estimates of $0.91 by $0.01. The company had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.41 billion. Otis Worldwide had a negative return on equity of 31.76% and a net margin of 11.53%. Otis Worldwide's quarterly revenue was down 2.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.88 EPS. As a group, equities research analysts predict that Otis Worldwide Co. will post 4.04 EPS for the current fiscal year.

Otis Worldwide declared that its board has approved a stock repurchase program on Thursday, January 16th that authorizes the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 5.4% of its shares through open market purchases. Shares repurchase programs are typically a sign that the company's leadership believes its shares are undervalued.

Otis Worldwide Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 6th. Shareholders of record on Friday, May 16th will be given a dividend of $0.42 per share. The ex-dividend date is Friday, May 16th. This represents a $1.68 annualized dividend and a yield of 1.72%. This is a positive change from Otis Worldwide's previous quarterly dividend of $0.39. Otis Worldwide's dividend payout ratio (DPR) is currently 44.09%.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on OTIS shares. JPMorgan Chase & Co. dropped their price objective on shares of Otis Worldwide from $105.00 to $88.00 and set a "neutral" rating on the stock in a research note on Tuesday, April 8th. Barclays reduced their target price on shares of Otis Worldwide from $92.00 to $90.00 and set an "underweight" rating for the company in a research note on Friday, April 25th. Wells Fargo & Company decreased their price objective on shares of Otis Worldwide from $105.00 to $95.00 and set an "equal weight" rating for the company in a research note on Thursday, April 24th. Finally, Royal Bank of Canada reduced their price target on shares of Otis Worldwide from $109.00 to $105.00 and set an "outperform" rating for the company in a research report on Monday, April 28th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and two have issued a buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $100.00.

About Otis Worldwide

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects.