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

Otter Tail Co. (NASDAQ:OTTR) shares rose 9.6% during trading on Tuesday after the company announced better than expected quarterly earnings. The company traded as high as $83.90 and last traded at $84.36. Approximately 96,390 shares traded hands 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 (EPS) for the quarter, topping the consensus estimate of $1.26 by $0.04. Otter Tail had a net margin of 22.67% and a return on equity of 19.27%. The business had revenue of $303.11 million during the quarter, compared to analysts’ expectations of $314.75 million.

Otter Tail Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 10th. Shareholders of record on Friday, February 14th will be issued a dividend of $0.525 per share. The ex-dividend date of this dividend is Friday, February 14th. This represents a $2.10 dividend on an annualized basis 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 presently 29.29%.

Wall Street Analyst Weigh In

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

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

Otter Tail Trading Up 0.3 %

The company has a debt-to-equity ratio of 0.58, a quick ratio of 1.66 and a current ratio of 2.17. The stock has a market capitalization of $3.41 billion, a PE ratio of 11.36 and a beta of 0.57. The business’s 50-day moving average is $76.80 and its two-hundred day moving average is $79.55.

About Otter Tail

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.