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

Shares of Otter Tail Co. (NASDAQ:OTTR) traded up 9.6% during mid-day trading 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 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 EPS for the quarter, topping analysts’ consensus estimates of $1.26 by $0.04. The firm had revenue of $303.11 million during the quarter, compared to analysts’ expectations of $314.75 million. Otter Tail had a return on equity of 19.27% and a net margin of 22.67%.

Otter Tail Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 10th. Shareholders of record on Friday, February 14th will be paid a $0.525 dividend. The ex-dividend date of this dividend is Friday, February 14th. This represents a $2.10 annualized dividend and a yield of 2.58%. This is an increase from Otter Tail’s previous quarterly dividend of $0.47. Otter Tail’s dividend payout ratio (DPR) is presently 29.29%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on OTTR shares. StockNews.com upgraded Otter Tail from a “sell” rating to a “hold” rating in a report 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 Trading of Otter Tail

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

Otter Tail Stock Performance

The firm has a market cap of $3.41 billion, a P/E ratio of 11.36 and a beta of 0.57. 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 firm’s fifty day moving average price is $76.80 and its 200 day moving average price 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.