Stock Traders Purchase Large Volume of Call Options on Otis Worldwide (NYSE:OTIS)

Key Points

• Unusually high options activity: Investors purchased 10,567 call options on Otis Worldwide, roughly 2,048% above the average daily volume of 492 contracts.
• Shares rose modestly: Otis stock gained $0.47 to $71.96, while the company reported quarterly revenue of $3.86 billion and earnings of $1.01 per share, both broadly in line with or above expectations.
• Analyst sentiment remains mixed: The stock has a consensus “Hold” rating and an average price target of $92.91, while institutional investors own 88.03% of outstanding shares. Otis also announced a quarterly dividend of $0.44 per share, yielding approximately 2.4% annually.

Otis Worldwide Corporation (NYSE:OTIS - Get Free Report) was the recipient of unusually large options trading activity on Monday. Stock investors bought 10,567 call options on the stock. This is an increase of approximately 2,048% compared to the average daily volume of 492 call options.

Otis Worldwide Stock Up 0.7%

Shares of Otis Worldwide stock traded up $0.47 during trading hours on Monday, hitting $71.96. The company's stock had a trading volume of 445,639 shares, compared to its average volume of 3,738,347. The business has a fifty day moving average of $72.64 and a 200 day moving average of $77.56. Otis Worldwide has a 1-year low of $69.16 and a 1-year high of $94.57. The company has a market capitalization of $27.39 billion, a PE ratio of 18.48, a P/E/G ratio of 2.52 and a beta of 0.89.

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, meeting the consensus estimate of $1.01. Otis Worldwide had a net margin of 10.17% and a negative return on equity of 28.50%. The business had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.76 billion. During the same quarter in the previous year, the business posted $1.05 EPS. The business's quarterly revenue was up 7.3% on a year-over-year basis. Otis Worldwide has set its FY 2026 guidance at 4.010-4.050 EPS. On average, sell-side analysts anticipate that Otis Worldwide will post 4.03 earnings per share for the current fiscal year.

Otis Worldwide Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, September 11th. Stockholders of record on Friday, August 14th will be given a $0.44 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.76 annualized dividend and a dividend yield of 2.4%. Otis Worldwide's dividend payout ratio is presently 45.24%.

Institutional Investors Weigh In On Otis Worldwide

Several hedge funds have recently modified their holdings of the stock. Pinnacle Financial Partners Inc. boosted its stake in Otis Worldwide by 19.6% during the 3rd quarter. Pinnacle Financial Partners Inc. now owns 77,492 shares of the company's stock valued at $7,085,000 after purchasing an additional 12,721 shares during the period. Capital Research Global Investors increased its stake in shares of Otis Worldwide by 0.6% in the fourth quarter. Capital Research Global Investors now owns 2,843,926 shares of the company's stock valued at $248,417,000 after purchasing an additional 18,189 shares during the period. Lazard Freres Gestion S.A.S. raised its holdings in shares of Otis Worldwide by 21.9% during the fourth quarter. Lazard Freres Gestion S.A.S. now owns 1,309,160 shares of the company's stock valued at $114,355,000 after buying an additional 235,316 shares during the last quarter. Banco Santander S.A. raised its holdings in shares of Otis Worldwide by 1,153.2% during the second quarter. Banco Santander S.A. now owns 106,257 shares of the company's stock valued at $7,608,000 after buying an additional 97,778 shares during the last quarter. Finally, Danske Bank A S raised its holdings in shares of Otis Worldwide by 13.3% during the fourth quarter. Danske Bank A S now owns 225,994 shares of the company's stock valued at $19,741,000 after buying an additional 26,500 shares during the last quarter. 88.03% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on OTIS. Weiss Ratings reiterated a "hold (c-)" rating on shares of Otis Worldwide in a report on Wednesday, August 12th. Morgan Stanley set a $75.00 price objective on Otis Worldwide in a report on Monday, August 10th. Sanford C. Bernstein cut their target price 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. Royal Bank Of Canada set a $90.00 target price on Otis Worldwide in a report on Tuesday, July 28th. Finally, Evercore reissued an "outperform" rating and set a $95.00 price target on shares of Otis Worldwide in a research report on Thursday, July 23rd. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $92.91.

Otis Worldwide Company Profile

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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