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

Key Points

• Otter Tail hit a new 52-week high, trading as high as $93.00 and ending the session up about 2.7%. The move came with solid volume, signaling continued investor interest in the utility stock.
• Recent earnings were stronger than expected, with the company reporting $1.73 EPS versus the $1.42 consensus and revenue topping forecasts. Management also posted year-over-year revenue growth of 2.9% and maintained healthy profitability metrics.
• Analyst opinion remains mixed, with the overall consensus at Hold and an average target price of $86, below the current share price. Recent ratings have ranged from Buy to Reduce, suggesting caution despite the stock’s recent strength.

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report)'s stock price reached a new 52-week high during trading on Wednesday . The company traded as high as $93.00 and last traded at $93.0060, with a volume of 54366 shares. The stock had previously closed at $90.09.

Wall Street Analyst Weigh In

Several equities analysts have weighed in on OTTR shares. KeyCorp reissued a "sector weight" rating on shares of Otter Tail in a report on Monday, June 1st. Weiss Ratings upgraded Otter Tail from a "hold (c)" rating to a "buy (b-)" rating in a research note on Monday, May 11th. Zacks Research lowered Otter Tail from a "strong-buy" rating to a "hold" rating in a report on Wednesday, May 27th. Siebert Williams Shank cut Otter Tail from a "buy" rating to a "hold" rating and set a $86.00 price objective on the stock. in a research note on Wednesday, May 6th. Finally, UBS Group reaffirmed a "reduce" rating on shares of Otter Tail in a report on Friday, May 29th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average target price of $86.00.

Otter Tail Trading Up 2.7%

The stock has a market cap of $3.88 billion, a PE ratio of 13.86 and a beta of 0.45. The firm has a 50-day simple moving average of $88.39 and a 200-day simple moving average of $87.35. The company has a quick ratio of 1.64, a current ratio of 2.04 and a debt-to-equity ratio of 0.56.

Otter Tail (NASDAQ:OTTR - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The utilities provider reported $1.73 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.31. Otter Tail had a return on equity of 15.21% and a net margin of 21.34%.The company had revenue of $347.03 million during the quarter, compared to analysts' expectations of $339.10 million. During the same period in the previous year, the business earned $1.62 earnings per share. The firm's quarterly revenue was up 2.9% compared to the same quarter last year. Equities analysts forecast that Otter Tail Corporation will post 5.48 earnings per share for the current year.

Otter Tail Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 10th. Investors of record on Friday, May 15th were issued a dividend of $0.5775 per share. This represents a $2.31 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend was Friday, May 15th. Otter Tail's dividend payout ratio is 34.63%.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Sound Income Strategies LLC raised its position in shares of Otter Tail by 248.8% in the first quarter. Sound Income Strategies LLC now owns 286 shares of the utilities provider's stock worth $25,000 after buying an additional 204 shares in the last quarter. EverSource Wealth Advisors LLC grew its position in Otter Tail by 129.3% during the fourth quarter. EverSource Wealth Advisors LLC now owns 376 shares of the utilities provider's stock worth $30,000 after buying an additional 212 shares in the last quarter. Caitong International Asset Management Co. Ltd purchased a new position in Otter Tail during the fourth quarter worth about $31,000. Motiv8 Investments LLC bought a new position in Otter Tail in the 4th quarter worth about $34,000. Finally, SHP Wealth Management bought a new position in Otter Tail in the 4th quarter worth about $40,000. 61.32% of the stock is owned by institutional investors.

About Otter Tail

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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