Otter Tail (NASDAQ:OTTR) Stock Price Up 7.3% Following Strong Earnings

Key Points

• Otter Tail Corporation's stock surged 7.3% after reporting quarterly earnings of $1.85 EPS, exceeding analyst estimates of $1.74 EPS.
• Revenue for the quarter stood at $333.04 million, surpassing expectations of $329.60 million, although it represented a 2.7% decline year-over-year.
• Siebert Williams Shank upgraded the stock from a "hold" to a "buy" rating and set a new target price of $83.00, raised from $82.00.

Shares of Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) shot up 7.3% during mid-day trading on Tuesday after the company announced better than expected quarterly earnings. The stock traded as high as $82.01 and last traded at $81.75. 107,281 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 236,604 shares. The stock had previously closed at $76.22.

The utilities provider reported $1.85 EPS for the quarter, topping the consensus estimate of $1.74 by $0.11. Otter Tail had a net margin of 21.82% and a return on equity of 16.85%. The firm had revenue of $333.04 million for the quarter, compared to analysts' expectations of $329.60 million. During the same quarter last year, the firm earned $2.07 EPS. The company's quarterly revenue was down 2.7% compared to the same quarter last year.

Otter Tail Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 10th. Investors of record on Friday, August 15th will be issued a $0.525 dividend. This represents a $2.10 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, August 15th. Otter Tail's payout ratio is 30.88%.

Analyst Upgrades and Downgrades

Separately, Siebert Williams Shank upgraded shares of Otter Tail from a "hold" rating to a "buy" rating and boosted their price target for the company from $82.00 to $83.00 in a research report on Wednesday, May 7th.

Institutional Investors Weigh In On Otter Tail

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Charles Schwab Investment Management Inc. boosted its holdings in Otter Tail by 2.8% in the first quarter. Charles Schwab Investment Management Inc. now owns 551,338 shares of the utilities provider's stock worth $44,311,000 after purchasing an additional 14,793 shares during the last quarter. Northern Trust Corp raised its position in shares of Otter Tail by 15.1% during the 4th quarter. Northern Trust Corp now owns 545,618 shares of the utilities provider's stock valued at $40,288,000 after purchasing an additional 71,601 shares during the period. Millennium Management LLC increased its holdings in Otter Tail by 13.5% in the 4th quarter. Millennium Management LLC now owns 411,281 shares of the utilities provider's stock valued at $30,369,000 after acquiring an additional 48,888 shares during the last quarter. Caisse DE Depot ET Placement DU Quebec increased its holdings in Otter Tail by 82.2% in the 1st quarter. Caisse DE Depot ET Placement DU Quebec now owns 406,321 shares of the utilities provider's stock valued at $32,656,000 after acquiring an additional 183,316 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of Otter Tail by 9.8% in the 1st quarter. Invesco Ltd. now owns 319,907 shares of the utilities provider's stock worth $25,711,000 after buying an additional 28,563 shares in the last quarter. 61.32% of the stock is owned by hedge funds and other institutional investors.

Otter Tail Stock Up 0.1%

The firm has a market capitalization of $3.34 billion, a PE ratio of 11.73 and a beta of 0.56. The business's 50 day simple moving average is $78.00 and its 200 day simple moving average is $78.72. The company has a current ratio of 3.31, a quick ratio of 2.03 and a debt-to-equity ratio of 0.59.

Otter Tail Company Profile

Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets.