Otis Worldwide Corporation (NYSE:OTIS) Given Average Recommendation of "Hold" by Brokerages

Key Points

• Otis Worldwide has a consensus analyst rating of "Hold" from 11 brokerages, with an average 1-year price target of about $97.64. The latest ratings have been mixed, including target cuts from Wells Fargo and JPMorgan downgrades to neutral/equal weight.
• The stock recently traded near its 52-week low at $74.83, below both its 50-day and 200-day moving averages. Otis reported quarterly EPS of $0.89, missing estimates, while revenue of $3.57 billion also fell short of expectations.
• The company raised its quarterly dividend to $0.44 per share from $0.42, implying an annualized payout of $1.76 and a yield of about 2.4%. Institutional ownership remains high at 88.03% of shares outstanding.

Shares of Otis Worldwide Corporation (NYSE:OTIS - Get Free Report) have received a consensus rating of "Hold" from the eleven research firms that are covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, seven have assigned a hold recommendation and three have given a buy recommendation to the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is $97.6364.

Several research firms recently commented on OTIS. Wall Street Zen lowered Otis Worldwide from a "buy" rating to a "hold" rating in a report on Saturday, January 10th. Wells Fargo & Company decreased their price target on Otis Worldwide from $92.00 to $80.00 and set an "equal weight" rating for the company in a report on Wednesday, April 1st. Royal Bank Of Canada lowered their price objective on Otis Worldwide from $110.00 to $105.00 and set an "outperform" rating on the stock in a research report on Thursday, April 23rd. Morgan Stanley set a $88.00 price objective on shares of Otis Worldwide in a research note on Friday, April 24th. Finally, JPMorgan Chase & Co. cut shares of Otis Worldwide from an "overweight" rating to a "neutral" rating and set a $98.00 target price for the company. in a research note on Friday, January 30th.

Otis Worldwide Price Performance

NYSE OTIS opened at $74.83 on Friday. Otis Worldwide has a 1 year low of $74.62 and a 1 year high of $101.42. The company has a market capitalization of $28.71 billion, a PE ratio of 19.90, a P/E/G ratio of 2.45 and a beta of 0.95. The company has a fifty day moving average of $81.47 and a 200 day moving average of $86.57.

Otis Worldwide (NYSE:OTIS - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The company reported $0.89 earnings per share for the quarter, missing the consensus estimate of $0.91 by ($0.02). The company had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.77 billion. Otis Worldwide had a negative return on equity of 29.39% and a net margin of 10.11%.Otis Worldwide's revenue for the quarter was up 6.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.92 earnings per share. Otis Worldwide has set its FY 2026 guidance at 4.200-4.240 EPS. Research analysts expect that Otis Worldwide will post 4.18 earnings per share for the current year.

Otis Worldwide Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 15th will be issued a $0.44 dividend. The ex-dividend date of this dividend is Friday, May 15th. This is a positive change from Otis Worldwide's previous quarterly dividend of $0.42. This represents a $1.76 dividend on an annualized basis and a yield of 2.4%. Otis Worldwide's dividend payout ratio is presently 44.68%.

Insider Transactions at Otis Worldwide

In other news, CAO Michael Patrick Ryan sold 1,182 shares of the firm's stock in a transaction dated Tuesday, February 10th. The stock was sold at an average price of $90.06, for a total transaction of $106,450.92. Following the sale, the chief accounting officer directly owned 3,504 shares in the company, valued at $315,570.24. This trade represents a 25.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Montlivault Stephane De sold 47,944 shares of Otis Worldwide stock in a transaction dated Thursday, February 12th. The shares were sold at an average price of $92.25, for a total value of $4,422,834.00. Following the completion of the transaction, the insider owned 29,176 shares of the company's stock, valued at approximately $2,691,486. This represents a 62.17% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.14% of the company's stock.

Institutional Trading of Otis Worldwide

Several institutional investors have recently bought and sold shares of OTIS. Oslo Pensjonsforsikring AS acquired a new position in shares of Otis Worldwide during the 1st quarter worth approximately $207,000. Cassaday & Co Wealth Management LLC acquired a new stake in Otis Worldwide in the 1st quarter valued at $137,000. Dimensional Fund Advisors LP increased its holdings in Otis Worldwide by 4.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 1,969,372 shares of the company's stock worth $151,790,000 after acquiring an additional 83,896 shares in the last quarter. KBC Group NV increased its holdings in Otis Worldwide by 64.1% in the 1st quarter. KBC Group NV now owns 453,059 shares of the company's stock worth $34,922,000 after acquiring an additional 176,913 shares in the last quarter. Finally, SEB Asset Management AB acquired a new position in Otis Worldwide during the first quarter worth $7,814,000. 88.03% of the stock is owned by institutional investors and hedge funds.

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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