Otter Tail (NASDAQ:OTTR) Hits New 1-Year High – Should You Buy?

Otter Tail Corporation (NASDAQ:OTTR)’s stock price hit a new 52-week high on Monday . The company traded as high as $86.77 and last traded at $86.38, with a volume of 13769 shares traded. The stock had previously closed at $84.08.

Wall Street Analyst Weigh In

OTTR has been the topic of a number of research reports. Zacks Research raised Otter Tail to a “hold” rating in a research note on Friday, October 17th. Weiss Ratings upgraded Otter Tail from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Saturday, October 25th. Two analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to MarketBeat.com, Otter Tail has a consensus rating of “Moderate Buy” and a consensus target price of $83.00.

Otter Tail Stock Up 0.4%

The company has a market cap of $3.60 billion, a P/E ratio of 12.97 and a beta of 0.56. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.82 and a current ratio of 3.57. The business’s fifty day moving average is $82.70 and its two-hundred day moving average is $81.09.

Otter Tail (NASDAQ:OTTR) last issued its earnings results on Tuesday, November 4th. The utilities provider reported $1.86 EPS for the quarter, topping analysts’ consensus estimates of $1.80 by $0.06. The business had revenue of $325.56 million for the quarter, compared to analyst estimates of $337.40 million. Otter Tail had a net margin of 21.48% and a return on equity of 15.96%. The company’s quarterly revenue was down 3.7% compared to the same quarter last year. During the same period last year, the company posted $2.03 earnings per share. Equities analysts predict that Otter Tail Corporation will post 5.88 EPS for the current year.

Otter Tail Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Friday, February 13th will be issued a $0.5775 dividend. The ex-dividend date is Friday, February 13th. This is an increase from Otter Tail’s previous quarterly dividend of $0.53. This represents a $2.31 annualized dividend and a dividend yield of 2.7%. Otter Tail’s dividend payout ratio is presently 31.67%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its holdings in Otter Tail by 2.5% during the first quarter. Royal Bank of Canada now owns 116,479 shares of the utilities provider’s stock worth $9,361,000 after buying an additional 2,807 shares during the period. AQR Capital Management LLC raised its position in shares of Otter Tail by 26.9% in the 1st quarter. AQR Capital Management LLC now owns 22,709 shares of the utilities provider’s stock worth $1,825,000 after acquiring an additional 4,815 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in Otter Tail by 4.5% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,611 shares of the utilities provider’s stock valued at $1,978,000 after purchasing an additional 1,067 shares in the last quarter. United Services Automobile Association purchased a new position in Otter Tail in the first quarter valued at about $223,000. Finally, Jane Street Group LLC raised its holdings in Otter Tail by 190.8% in the first quarter. Jane Street Group LLC now owns 54,112 shares of the utilities provider’s stock worth $4,349,000 after purchasing an additional 35,505 shares in the last quarter. 61.32% of the stock is currently owned by institutional investors.

About Otter Tail

Otter Tail Corporation, through its primary subsidiary Otter Tail Power Company, is a regulated electric utility engaged in the generation, transmission and distribution of electricity. The company operates a diversified portfolio of owned and contracted power generation facilities, including coal, natural gas, wind and hydroelectric units, supplemented by long-term power purchase agreements. In addition to utility operations, Otter Tail provides related engineering, construction and maintenance services to support grid reliability and efficiency.

The company’s service territory covers a predominantly rural footprint in the Upper Midwest, including communities in west-central Minnesota, eastern North Dakota, northwest Wisconsin and small portions of South Dakota.