Otter Tail (NASDAQ:OTTR) Sets New 52-Week High – Time to Buy?

Otter Tail Corporation (NASDAQ:OTTR)’s stock price hit a new 52-week high during trading on Wednesday . The company traded as high as $86.32 and last traded at $86.33, with a volume of 140784 shares trading hands. The stock had previously closed at $84.68.

Analyst Upgrades and Downgrades

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

Otter Tail Stock Performance

The stock has a 50 day moving average of $81.30 and a two-hundred day moving average of $80.53. The stock has a market capitalization of $3.44 billion, a PE ratio of 12.39 and a beta of 0.57. The company has a debt-to-equity ratio of 0.57, a current ratio of 3.57 and a quick ratio of 2.82.

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

Otter Tail Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, December 10th. Investors of record on Friday, November 14th were issued a dividend of $0.525 per share. The ex-dividend date of this dividend was Friday, November 14th. This represents a $2.10 annualized dividend and a yield of 2.6%. Otter Tail’s payout ratio is currently 31.67%.

Institutional Investors Weigh In On Otter Tail

Several institutional investors and hedge funds have recently made changes to their positions in OTTR. CIBC Bancorp USA Inc. purchased a new position in Otter Tail during the 3rd quarter valued at about $337,000. Advisory Services Network LLC purchased a new position in Otter Tail during the third quarter worth $122,000. Financial Engines Advisors L.L.C. raised its holdings in shares of Otter Tail by 4.3% in the third quarter. Financial Engines Advisors L.L.C. now owns 29,990 shares of the utilities provider’s stock worth $2,458,000 after acquiring an additional 1,232 shares during the last quarter. Virtus Advisers LLC purchased a new stake in shares of Otter Tail in the third quarter valued at $562,000. Finally, Voleon Capital Management LP acquired a new stake in shares of Otter Tail during the third quarter valued at $1,017,000. 61.32% of the stock is currently owned by hedge funds and other 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.