Otter Tail (NASDAQ:OTTR) Shares Up 9.6% Following Strong Earnings

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

The utilities provider reported $1.30 earnings per share for the quarter, beating 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 company had revenue of $303.11 million during the quarter, compared to analyst estimates of $314.75 million.

Otter Tail Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Investors of record on Friday, February 14th will be issued a $0.525 dividend. The ex-dividend date is Friday, February 14th. This represents a $2.10 annualized dividend and a yield of 2.58%. This is a boost from Otter Tail’s previous quarterly dividend of $0.47. Otter Tail’s dividend payout ratio (DPR) is currently 29.29%.

Wall Street Analysts Forecast Growth

OTTR has been the topic of a number of research reports. StockNews.com upgraded Otter Tail from a “sell” rating to a “hold” rating in a research note on Thursday, November 14th. Siebert Williams Shank upgraded Otter Tail from a “strong sell” rating to a “hold” rating in a research note on Wednesday, November 6th.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Wilmington Savings Fund Society FSB purchased a new position in shares of Otter Tail during the 3rd quarter valued at about $39,000. Asset Planning Inc purchased a new position in shares of Otter Tail during the 4th quarter valued at $37,000. Allworth Financial LP boosted its holdings in Otter Tail by 132.8% in the 3rd quarter. Allworth Financial LP now owns 547 shares of the utilities provider’s stock worth $43,000 after buying an additional 312 shares during the period. Studio Investment Management LLC bought a new stake in Otter Tail during the fourth quarter valued at about $50,000. Finally, Crews Bank & Trust bought a new stake in Otter Tail during the fourth quarter valued at about $81,000. Hedge funds and other institutional investors own 61.32% of the company’s stock.

Otter Tail Stock Up 0.3 %

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 company has a 50-day moving average price of $76.80 and a 200 day moving average price of $79.55. The firm has a market capitalization of $3.41 billion, a PE ratio of 11.36 and a beta of 0.57.

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.