Otter Tail (NASDAQ:OTTR) Trading Up 9.6% on Earnings Beat

Otter Tail Co. (NASDAQ:OTTR)’s share price shot up 9.6% on Tuesday following a better than expected earnings announcement. The stock traded as high as $83.90 and last traded at $84.36. 96,390 shares were traded during mid-day trading, a decline of 57% from the average session volume of 222,912 shares. The stock had previously closed at $76.99.

The utilities provider reported $1.30 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.26 by $0.04. Otter Tail had a return on equity of 19.27% and a net margin of 22.67%. The firm had revenue of $303.11 million for the quarter, compared to analyst estimates of $314.75 million.

Otter Tail Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Investors of record on Friday, February 14th will be given a dividend of $0.525 per share. This represents a $2.10 dividend on an annualized basis and a yield of 2.58%. The ex-dividend date of this dividend is Friday, February 14th. This is an increase from Otter Tail’s previous quarterly dividend of $0.47. Otter Tail’s dividend payout ratio is 29.29%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Siebert Williams Shank upgraded shares of Otter Tail from a “strong sell” rating to a “hold” rating in a research note on Wednesday, November 6th. StockNews.com raised shares of Otter Tail from a “sell” rating to a “hold” rating in a research report on Thursday, November 14th.

Hedge Funds Weigh In On Otter Tail

Hedge funds and other institutional investors have recently bought and sold shares of the stock. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of Otter Tail by 2.4% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 45,696 shares of the utilities provider’s stock valued at $3,374,000 after purchasing an additional 1,067 shares during the period. Voloridge Investment Management LLC purchased a new stake in Otter Tail during the 4th quarter worth $5,675,000. Vident Advisory LLC lifted its holdings in Otter Tail by 6.6% in the 4th quarter. Vident Advisory LLC now owns 32,088 shares of the utilities provider’s stock worth $2,369,000 after buying an additional 1,995 shares in the last quarter. Squarepoint Ops LLC purchased a new position in Otter Tail in the 4th quarter valued at about $286,000. Finally, State of Wyoming grew its stake in shares of Otter Tail by 34.7% during the fourth quarter. State of Wyoming now owns 3,011 shares of the utilities provider’s stock valued at $222,000 after acquiring an additional 775 shares in the last quarter. 61.32% of the stock is owned by institutional investors and hedge funds.

Otter Tail Stock Performance

The firm has a market capitalization of $3.41 billion, a PE ratio of 11.36 and a beta of 0.57. The company has a debt-to-equity ratio of 0.58, a current ratio of 2.17 and a quick ratio of 1.66. The stock has a 50-day moving average price of $76.80 and a 200-day moving average price of $79.55.

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.