Otter Tail (NASDAQ:OTTR) Hits New 12-Month Low - What's Next?

Key Points

• Otter Tail shares fell to a new 52-week low of $77.75, below the prior close of $79.77.
• Analyst views are mixed: the consensus rating is Hold with a $91 average price target, including one Buy, three Holds, and one Sell.
• Quarterly results missed expectations: EPS was $1.41 versus $1.55 forecast, and revenue was $320.51 million versus $327.87 million expected. The company also announced a quarterly dividend of $0.5775 per share, equivalent to a 3.0% yield.

Otter Tail Corporation (NASDAQ:OTTR - Get Free Report) shares reached a new 52-week low on Wednesday. The company traded as low as $77.75 and last traded at $77.6750, with a volume of 131,271 shares. The stock had previously closed at $79.77.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the stock. Wall Street Zen lowered shares of Otter Tail from a "hold" rating to a "sell" rating in a report on Saturday. Weiss Ratings downgraded shares of Otter Tail from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, November 3rd. Finally, Siebert Williams Shank raised shares of Otter Tail from a "hold" rating to a "buy" rating and set a $91.00 price objective for the company in a report on Wednesday, November 4th. One research analyst has rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Otter Tail currently has an average rating of "Hold" and an average target price of $91.00.

Otter Tail Stock Performance

The stock has a 50-day moving average of $88.16 and a 200 day moving average of $88.60. The firm has a market capitalization of $3.27 billion, a P/E ratio of 18.57 and a beta of 0.42. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.05 and a current ratio of 1.37.

Otter Tail (NASDAQ:OTTR - Get Free Report) last posted its quarterly earnings data on Monday, November 2nd. The utilities provider reported $1.41 EPS for the quarter, missing analysts' consensus estimates of $1.55 by ($0.14). The business had revenue of $320.51 million during the quarter, compared to analyst estimates of $327.87 million. Otter Tail had a return on equity of 13.41% and a net margin of 13.45%. Otter Tail's revenue for the quarter was down 1.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.86 EPS. On average, research analysts anticipate that Otter Tail Corporation will post 5.96 earnings per share for the current year.

Otter Tail Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 13th will be given a dividend of $0.5775 per share. The ex-dividend date is Friday, November 13th. This represents a $2.31 dividend on an annualized basis and a yield of 3.0%. Otter Tail's dividend payout ratio is presently 55.13%.

Institutional Investors Weigh In On Otter Tail

Several institutional investors have recently modified their holdings of OTTR. BlackRock Inc. acquired a new position in Otter Tail in the second quarter valued at approximately $590,053,000. Caisse de depot et placement du Quebec acquired a new stake in Otter Tail during the 2nd quarter worth $48,578,000. Bank of New York Mellon Corp acquired a new stake in Otter Tail during the 2nd quarter worth $32,238,000. Bank of America Corp DE raised its position in shares of Otter Tail by 3.5% during the 1st quarter. Bank of America Corp DE now owns 336,483 shares of the utilities provider's stock valued at $29,533,000 after acquiring an additional 11,363 shares during the last quarter. Finally, Principal Financial Group Inc. boosted its position in shares of Otter Tail by 16.2% in the 1st quarter. Principal Financial Group Inc. now owns 231,889 shares of the utilities provider's stock worth $20,353,000 after purchasing an additional 32,266 shares during the last quarter. Institutional investors and hedge funds own 61.32% of the company's stock.

About Otter Tail

Otter Tail Corporation is a diversified company based in Fergus Falls, Minnesota. Its businesses operate in the electric utility, manufacturing and plastics industries. Through Otter Tail Power Company, the corporation generates, transmits and distributes electricity to customers in parts of Minnesota, North Dakota and South Dakota. The utility traces its history to 1907. Its other businesses manufacture products such as metal components and fabricated assemblies, as well as plastic products for commercial and industrial applications.

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