Otter Tail (NASDAQ:OTTR) Stock Passes Above 200-Day Moving Average – Here’s Why

Shares of Otter Tail Corporation (NASDAQ:OTTR) passed above its two hundred day moving average during trading on Monday . The stock has a two hundred day moving average of $81.43 and traded as high as $88.29. Otter Tail shares last traded at $87.85, with a volume of 150,132 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on OTTR shares. Weiss Ratings upgraded shares of Otter Tail from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Saturday, October 25th. Zacks Research raised shares of Otter Tail to a “hold” rating in a research note on Friday, October 17th. Two analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, Otter Tail currently has an average rating of “Moderate Buy” and a consensus target price of $83.00.

Otter Tail Trading Up 1.4%

The company has a quick ratio of 2.82, a current ratio of 3.57 and a debt-to-equity ratio of 0.57. The company’s 50-day moving average is $83.23 and its 200-day moving average is $81.48. The stock has a market capitalization of $3.72 billion, a price-to-earnings ratio of 13.37 and a beta of 0.56.

Otter Tail (NASDAQ:OTTR) last posted its quarterly earnings results on Tuesday, November 4th. The utilities provider reported $1.86 earnings per share for the quarter, beating the consensus estimate of $1.80 by $0.06. Otter Tail had a net margin of 21.48% and a return on equity of 15.96%. The business had revenue of $325.56 million during the quarter, compared to analysts’ expectations of $337.40 million. During the same quarter in the prior year, the company posted $2.03 EPS. The business’s revenue for the quarter was down 3.7% on a year-over-year basis. Research analysts anticipate that Otter Tail Corporation will post 5.88 earnings per share for the current fiscal year.

Otter Tail Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Friday, February 13th will be issued a dividend of $0.5775 per share. The ex-dividend date is Friday, February 13th. This represents a $2.31 dividend on an annualized basis and a dividend yield of 2.6%. This is a boost from Otter Tail’s previous quarterly dividend of $0.53. Otter Tail’s dividend payout ratio (DPR) is currently 31.67%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. HighMark Wealth Management LLC acquired a new stake in shares of Otter Tail during the second quarter valued at about $26,000. GAMMA Investing LLC boosted its position in shares of Otter Tail by 44.0% during the 3rd quarter. GAMMA Investing LLC now owns 432 shares of the utilities provider’s stock worth $35,000 after purchasing an additional 132 shares during the period. BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Otter Tail in the 2nd quarter valued at approximately $53,000. Nisa Investment Advisors LLC increased its holdings in Otter Tail by 14.9% in the 3rd quarter. Nisa Investment Advisors LLC now owns 997 shares of the utilities provider’s stock valued at $82,000 after purchasing an additional 129 shares during the last quarter. Finally, Allworth Financial LP raised its position in Otter Tail by 84.3% in the second quarter. Allworth Financial LP now owns 1,198 shares of the utilities provider’s stock valued at $92,000 after purchasing an additional 548 shares during the period. Institutional investors and hedge funds own 61.32% of the company’s stock.

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.