Otis Worldwide (NYSE:OTIS) Hits New 12-Month Low - Time to Sell?

Key Points

• Otis Worldwide shares hit a new 52-week low, trading as low as $68.95 and closing near $68.79, below both the 50-day and 200-day moving averages.
• Analyst sentiment is mixed but leans toward holding: four analysts rate the stock Buy, five Hold and one Sell. The consensus price target is $92.91, well above the recent trading price.
• Otis reported quarterly earnings in line with estimates at $1.01 per share, while revenue rose 7.3% year over year to $3.86 billion. The company also declared a $0.44 quarterly dividend, representing a 2.5% annualized yield.

Otis Worldwide Corporation (NYSE:OTIS - Get Free Report)'s stock price reached a new 52-week low during trading on Wednesday . The company traded as low as $68.95 and last traded at $68.7920, with a volume of 656590 shares trading hands. The stock had previously closed at $70.06.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Evercore reiterated an "outperform" rating and set a $95.00 target price on shares of Otis Worldwide in a research note on Thursday, July 23rd. Royal Bank Of Canada set a $90.00 price objective on Otis Worldwide in a research note on Tuesday, July 28th. Sanford C. Bernstein decreased their price target on Otis Worldwide from $97.00 to $90.00 and set an "outperform" rating on the stock in a research report on Thursday, July 23rd. Morgan Stanley set a $75.00 price objective on shares of Otis Worldwide in a research report on Monday, August 10th. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Otis Worldwide in a research report on Wednesday, August 12th. Four investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $92.91.

Otis Worldwide Stock Down 1.2%

The stock has a market cap of $26.36 billion, a price-to-earnings ratio of 17.80, a PEG ratio of 2.51 and a beta of 0.88. The stock's fifty day moving average is $72.31 and its 200-day moving average is $75.96.

Otis Worldwide (NYSE:OTIS - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The company reported $1.01 earnings per share for the quarter, hitting the consensus estimate of $1.01. The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.76 billion. Otis Worldwide had a net margin of 10.17% and a negative return on equity of 28.50%. The business's revenue for the quarter was up 7.3% compared to the same quarter last year. During the same period last year, the business posted $1.05 earnings per share. Otis Worldwide has set its FY 2026 guidance at 4.010-4.050 EPS. As a group, equities research analysts predict that Otis Worldwide Corporation will post 4.03 earnings per share for the current fiscal year.

Otis Worldwide Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 11th. Investors of record on Friday, August 14th will be issued a dividend of $0.44 per share. The ex-dividend date is Friday, August 14th. This represents a $1.76 dividend on an annualized basis and a dividend yield of 2.5%. Otis Worldwide's dividend payout ratio (DPR) is presently 45.24%.

Institutional Investors Weigh In On Otis Worldwide

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. California State Teachers Retirement System lifted its holdings in Otis Worldwide by 7,150.9% during the 2nd quarter. California State Teachers Retirement System now owns 45,473,804 shares of the company's stock valued at $3,255,924,000 after purchasing an additional 44,846,653 shares during the last quarter. BlackRock Inc. bought a new position in shares of Otis Worldwide in the second quarter valued at about $2,264,017,000. Norges Bank bought a new position in shares of Otis Worldwide in the fourth quarter valued at about $770,125,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Otis Worldwide during the 2nd quarter worth about $423,739,000. Finally, Canada Pension Plan Investment Board acquired a new stake in shares of Otis Worldwide during the 2nd quarter worth about $223,003,000. 88.03% of the stock is currently owned by institutional investors and hedge funds.

About Otis Worldwide

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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