Otis Worldwide (NYSE:OTIS) Reaches New 12-Month Low - What's Next?

Key Points

• Otis Worldwide hit a new 52-week low on Friday, falling to as low as $75.23 and closing near $75.09, down about 3.6% on the day.
• Recent earnings disappointed: the company reported $0.89 EPS versus $0.91 expected and revenue of $3.57 billion versus $3.77 billion expected, even though sales rose 6.4% year over year.
• Analyst sentiment remains cautious, with a consensus rating of “Hold” and an average target price of $97.64; the company also raised its quarterly dividend to $0.44 per share.

Otis Worldwide Corporation (NYSE:OTIS - Get Free Report) reached a new 52-week low on Friday . The company traded as low as $75.23 and last traded at $75.0850, with a volume of 2251457 shares changing hands. The stock had previously closed at $77.47.

Wall Street Analyst Weigh In

OTIS has been the topic of several analyst reports. UBS Group set a $105.00 price objective on Otis Worldwide in a research note on Thursday, April 23rd. Wells Fargo & Company decreased their price target on Otis Worldwide from $92.00 to $80.00 and set an "equal weight" rating on the stock in a research note on Wednesday, April 1st. Wall Street Zen cut Otis Worldwide from a "buy" rating to a "hold" rating in a research report on Saturday, January 10th. New Street Research set a $98.00 price objective on Otis Worldwide in a research note on Friday, January 30th. Finally, Royal Bank Of Canada cut their price objective on Otis Worldwide from $110.00 to $105.00 and set an "outperform" rating for the company in a report on Thursday, April 23rd. Three investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $97.64.

Otis Worldwide Trading Down 3.6%

The firm has a market capitalization of $28.66 billion, a price-to-earnings ratio of 19.89, a P/E/G ratio of 2.52 and a beta of 0.95. The firm has a fifty day moving average price of $81.47 and a 200 day moving average price of $86.57.

Otis Worldwide (NYSE:OTIS - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The company reported $0.89 earnings per share for the quarter, missing analysts' consensus estimates of $0.91 by ($0.02). The business had revenue of $3.57 billion for the quarter, compared to analyst estimates of $3.77 billion. Otis Worldwide had a net margin of 10.11% and a negative return on equity of 29.39%. The company'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 earned $0.92 earnings per share. Otis Worldwide has set its FY 2026 guidance at 4.200-4.240 EPS. As a group, equities analysts predict that Otis Worldwide Corporation will post 4.18 EPS for the current fiscal year.

Otis Worldwide Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Shareholders of record on Friday, May 15th will be paid a $0.44 dividend. This is a boost from Otis Worldwide's previous quarterly dividend of $0.42. 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, May 15th. Otis Worldwide's payout ratio is presently 46.81%.

Insider Activity at Otis Worldwide

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

Hedge Funds Weigh In On Otis Worldwide

Several large investors have recently made changes to their positions in the company. Jones Financial Companies Lllp boosted its stake in Otis Worldwide by 3.4% in the first quarter. Jones Financial Companies Lllp now owns 9,199 shares of the company's stock valued at $949,000 after acquiring an additional 304 shares during the last quarter. Empowered Funds LLC lifted its stake in shares of Otis Worldwide by 10.5% in the 1st quarter. Empowered Funds LLC now owns 8,988 shares of the company's stock valued at $928,000 after purchasing an additional 857 shares during the period. Acadian Asset Management LLC lifted its stake in shares of Otis Worldwide by 63.7% in the 1st quarter. Acadian Asset Management LLC now owns 4,045 shares of the company's stock valued at $417,000 after purchasing an additional 1,574 shares during the period. Baird Financial Group Inc. boosted its position in shares of Otis Worldwide by 7.1% in the 2nd quarter. Baird Financial Group Inc. now owns 32,245 shares of the company's stock worth $3,193,000 after purchasing an additional 2,132 shares during the last quarter. Finally, NewEdge Advisors LLC grew its stake in shares of Otis Worldwide by 13.3% during the second quarter. NewEdge Advisors LLC now owns 10,222 shares of the company's stock worth $1,012,000 after purchasing an additional 1,196 shares during the period. Institutional investors and hedge funds own 88.03% of the company's stock.

Otis Worldwide Company 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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