Otter Tail (NASDAQ:OTTR) Trading 7.3% Higher After Earnings Beat

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.

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) shot up 7.3% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $82.01 and last traded at $81.75. 107,281 shares changed hands during 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.74 by $0.11. Otter Tail had a net margin of 22.37% and a return on equity of 17.95%. The business had revenue of $333.04 million for the quarter, compared to analyst estimates of $329.60 million. During the same period in the prior year, the firm earned $2.07 earnings per share. Otter Tail's revenue was down 2.7% on a year-over-year basis.

Analyst Ratings Changes

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

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. HighMark Wealth Management LLC bought a new position in shares of Otter Tail in the 2nd quarter worth approximately $26,000. Byrne Asset Management LLC increased its holdings in Otter Tail by 54.8% in the 1st quarter. Byrne Asset Management LLC now owns 387 shares of the utilities provider's stock worth $31,000 after acquiring an additional 137 shares in the last quarter. MJT & Associates Financial Advisory Group Inc. purchased a new stake in Otter Tail in the 1st quarter worth approximately $34,000. Vermillion Wealth Management Inc. purchased a new stake in Otter Tail during the 4th quarter valued at approximately $36,000. Finally, AdvisorNet Financial Inc grew its holdings in Otter Tail by 120.0% during the 1st quarter. AdvisorNet Financial Inc now owns 550 shares of the utilities provider's stock valued at $44,000 after buying an additional 300 shares in the last quarter. 61.32% of the stock is owned by hedge funds and other institutional investors.

Otter Tail Stock Performance

The company has a debt-to-equity ratio of 0.58, a quick ratio of 2.03 and a current ratio of 2.62. The business's fifty day simple moving average is $77.79 and its 200-day simple moving average is $78.73. The firm has a market capitalization of $3.43 billion, a PE ratio of 11.64 and a beta of 0.56.

About Otter Tail

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.

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