Otter Tail (NASDAQ:OTTR) Reaches New 52-Week High - Should You Buy?

Key Points

• Reached a new 52-week high: OTTR traded as high as $90.46 (last at $90.145) with about 38,553 shares changing hands, roughly a 2% rise from the prior close.
• Analyst sentiment is cautious: Weiss Ratings cut the stock from "buy" to "hold," and the consensus Wall Street rating is "Hold" with a $83.00 target, below the current share price.
• Mixed but profitable quarterly results: Q4 EPS beat at $1.23 versus $1.16 expected while revenue was slightly below estimates; the company trades at a P/E of 13.8, has ROE of 15.36%, and ~61% institutional ownership.

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) shares reached a new 52-week high on Wednesday . The company traded as high as $90.46 and last traded at $90.1450, with a volume of 38553 shares traded. The stock had previously closed at $88.82.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded Otter Tail from a "buy (b)" rating to a "hold (c+)" rating in a research note on Wednesday, February 25th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Otter Tail presently has an average rating of "Hold" and a consensus target price of $83.00.

Otter Tail Stock Up 2.0%

The company has a debt-to-equity ratio of 0.52, a current ratio of 2.28 and a quick ratio of 1.83. The firm's 50-day moving average price is $87.06 and its 200 day moving average price is $83.83. The firm has a market capitalization of $3.80 billion, a price-to-earnings ratio of 13.80 and a beta of 0.50.

Otter Tail (NASDAQ:OTTR - Get Free Report) last issued its quarterly earnings data on Tuesday, February 17th. The utilities provider reported $1.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.16 by $0.07. The firm had revenue of $308.10 million during the quarter, compared to the consensus estimate of $311.15 million. Otter Tail had a return on equity of 15.36% and a net margin of 21.16%.The company's quarterly revenue was up 1.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.30 EPS. Sell-side analysts expect that Otter Tail Corporation will post 5.88 EPS for the current year.

Hedge Funds Weigh In On Otter Tail

A number of institutional investors have recently modified their holdings of OTTR. Inspire Advisors LLC acquired a new position in Otter Tail in the 3rd quarter valued at $1,046,000. Dynamic Technology Lab Private Ltd acquired a new stake in shares of Otter Tail during the third quarter worth $1,115,000. Benjamin Edwards Inc. purchased a new stake in shares of Otter Tail in the third quarter valued at $3,143,000. JPMorgan Chase & Co. grew its position in shares of Otter Tail by 77.3% in the third quarter. JPMorgan Chase & Co. now owns 605,504 shares of the utilities provider's stock valued at $49,633,000 after purchasing an additional 264,009 shares during the period. Finally, First Trust Advisors LP increased its stake in Otter Tail by 17.8% in the third quarter. First Trust Advisors LP now owns 1,464,613 shares of the utilities provider's stock valued at $120,054,000 after purchasing an additional 221,039 shares during the last quarter. Institutional investors and hedge funds own 61.32% of the company's stock.

Otter Tail Company Profile

Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company's service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.

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