Otis Worldwide (NYSE:OTIS) Reaches New 1-Year Low – Should You Sell?

Otis Worldwide Corporation (NYSE:OTIS)’s share price hit a new 52-week low during mid-day trading on Wednesday . The company traded as low as $84.00 and last traded at $87.7840, with a volume of 2302665 shares traded. The stock had previously closed at $90.55.

Wall Street Analyst Weigh In

A number of analysts have commented on the company. Barclays lifted their target price on Otis Worldwide from $90.00 to $92.00 and gave the stock an “underweight” rating in a report on Thursday, October 30th. Zacks Research raised Otis Worldwide from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 14th. Wells Fargo & Company lowered their price target on shares of Otis Worldwide from $95.00 to $92.00 and set an “equal weight” rating on the stock in a report on Monday, December 15th. Weiss Ratings reiterated a “hold (c)” rating on shares of Otis Worldwide in a research report on Monday, December 29th. Finally, BNP Paribas Exane upgraded Otis Worldwide from a “neutral” rating to an “outperform” rating and set a $105.00 target price on the stock in a research report on Tuesday, December 9th. Four equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $104.13.

Otis Worldwide Stock Performance

The firm’s 50-day moving average price is $88.41 and its 200 day moving average price is $89.46. The company has a market cap of $34.31 billion, a price-to-earnings ratio of 25.96, a PEG ratio of 2.62 and a beta of 1.02.

Otis Worldwide (NYSE:OTIS) last released its quarterly earnings data on Wednesday, January 28th. The company reported $1.03 EPS for the quarter, hitting analysts’ consensus estimates of $1.03. The firm had revenue of $3.80 billion during the quarter, compared to analysts’ expectations of $3.88 billion. Otis Worldwide had a net margin of 9.41% and a negative return on equity of 30.67%. The company’s revenue for the quarter was up 3.3% compared to the same quarter last year. During the same period in the previous year, the business posted $0.93 earnings per share. As a group, equities research analysts predict that Otis Worldwide Corporation will post 4.04 EPS for the current fiscal year.

Otis Worldwide Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Friday, December 5th. Stockholders of record on Friday, November 14th were paid a $0.42 dividend. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend was Friday, November 14th. Otis Worldwide’s payout ratio is 49.56%.

Insiders Place Their Bets

In other Otis Worldwide news, CAO Michael Patrick Ryan sold 3,028 shares of the firm’s stock in a transaction dated Wednesday, November 5th. The stock was sold at an average price of $91.69, for a total value of $277,637.32. Following the transaction, the chief accounting officer directly owned 2,628 shares of the company’s stock, valued at approximately $240,961.32. This trade represents a 53.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On Otis Worldwide

Hedge funds have recently modified their holdings of the business. Tufton Capital Management raised its position in Otis Worldwide by 2.8% in the fourth quarter. Tufton Capital Management now owns 15,533 shares of the company’s stock worth $1,356,000 after acquiring an additional 422 shares in the last quarter. KLP Kapitalforvaltning AS lifted its position in Otis Worldwide by 0.3% during the fourth quarter. KLP Kapitalforvaltning AS now owns 266,442 shares of the company’s stock worth $23,274,000 after buying an additional 700 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH boosted its position in shares of Otis Worldwide by 2.6% in the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 242,819 shares of the company’s stock worth $21,299,000 after acquiring an additional 6,065 shares during the last quarter. Optas LLC boosted its holdings in shares of Otis Worldwide by 5.1% in the 4th quarter. Optas LLC now owns 5,153 shares of the company’s stock valued at $450,000 after purchasing an additional 251 shares during the last quarter. Finally, Evergreen Capital Management LLC grew its position in Otis Worldwide by 10.4% during the fourth quarter. Evergreen Capital Management LLC now owns 64,881 shares of the company’s stock valued at $5,667,000 after acquiring an additional 6,092 shares during the period. 88.03% of the stock is currently owned by hedge funds and other institutional investors.

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.