Otis Worldwide (NYSE:OTIS) Reaches New 1-Year Low – What’s Next?

Otis Worldwide Corporation (NYSE:OTIS) hit a new 52-week low on Wednesday . The stock traded as low as $83.42 and last traded at $83.7510, with a volume of 1270606 shares changing hands. The stock had previously closed at $86.09.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on OTIS. Wells Fargo & Company reduced their target price on Otis Worldwide from $95.00 to $92.00 and set an “equal weight” rating for the company in a research note on Monday, December 15th. Weiss Ratings reiterated a “hold (c)” rating on shares of Otis Worldwide in a report on Monday, December 29th. Wall Street Zen cut Otis Worldwide from a “buy” rating to a “hold” rating in a research note on Saturday, January 10th. New Street Research set a $98.00 price objective on Otis Worldwide in a report on Friday, January 30th. Finally, JPMorgan Chase & Co. lowered Otis Worldwide from an “overweight” rating to a “neutral” rating and set a $98.00 target price on the stock. in a research report on Friday, January 30th. Three equities research analysts have rated the stock with a Buy rating, six have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $101.44.

Otis Worldwide Stock Performance

The firm has a market capitalization of $32.97 billion, a P/E ratio of 24.21, a PEG ratio of 2.64 and a beta of 1.00. The firm has a 50 day simple moving average of $89.82 and a two-hundred day simple moving average of $89.37.

Otis Worldwide (NYSE:OTIS) last posted its earnings results on Wednesday, January 28th. The company reported $1.03 earnings per share (EPS) for the quarter, hitting the consensus estimate of $1.03. Otis Worldwide had a net margin of 9.59% and a negative return on equity of 30.42%. The firm had revenue of $3.80 billion during the quarter, compared to analyst estimates of $3.88 billion. During the same quarter in the prior year, the business posted $0.93 EPS. The business’s revenue was up 3.3% compared to the same quarter last year. Sell-side analysts anticipate that Otis Worldwide Corporation will post 4.04 earnings per share for the current year.

Otis Worldwide Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, March 13th. Shareholders of record on Friday, February 13th will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Friday, February 13th. This represents a $1.68 annualized dividend and a dividend yield of 2.0%. Otis Worldwide’s dividend payout ratio (DPR) is currently 48.00%.

Insiders Place Their Bets

In other news, CEO Judith Fran Marks sold 56,107 shares of the business’s stock in a transaction that occurred on Thursday, February 5th. The stock was sold at an average price of $90.89, for a total value of $5,099,565.23. Following the transaction, the chief executive officer owned 231,072 shares in the company, valued at $21,002,134.08. The trade was a 19.54% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Neil Green sold 6,000 shares of the stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $86.45, for a total value of $518,700.00. Following the sale, the executive vice president directly owned 3,773 shares of the company’s stock, valued at $326,175.85. The trade was a 61.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 158,013 shares of company stock worth $14,337,635 over the last 90 days. 0.23% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Otis Worldwide

Several large investors have recently made changes to their positions in the business. Norges Bank purchased a new stake in Otis Worldwide during the fourth quarter worth about $770,125,000. Marshall Wace LLP boosted its stake in Otis Worldwide by 5,291.5% in the second quarter. Marshall Wace LLP now owns 2,844,524 shares of the company’s stock valued at $281,665,000 after acquiring an additional 2,791,765 shares during the last quarter. Millennium Management LLC grew its position in shares of Otis Worldwide by 1,047.0% during the 4th quarter. Millennium Management LLC now owns 2,387,466 shares of the company’s stock valued at $208,545,000 after acquiring an additional 2,179,314 shares during the period. Vanguard Group Inc. grew its position in shares of Otis Worldwide by 4.3% during the 2nd quarter. Vanguard Group Inc. now owns 48,587,153 shares of the company’s stock valued at $4,811,100,000 after acquiring an additional 1,991,860 shares during the period. Finally, Van ECK Associates Corp increased its stake in shares of Otis Worldwide by 97.9% during the 4th quarter. Van ECK Associates Corp now owns 4,002,589 shares of the company’s stock worth $349,626,000 after purchasing an additional 1,979,819 shares during the last quarter. 88.03% of the stock is owned by hedge funds and other institutional investors.

About Otis Worldwide

Otis Worldwide Corporation is a manufacturer, installer and servicer of vertical transportation systems, including elevators, escalators and moving walkways. The company designs and supplies new equipment for commercial, residential and industrial buildings, and provides ongoing maintenance and repair services aimed at maximizing equipment availability and safety. Otis also offers modernization solutions to upgrade aging systems and improve performance, accessibility and energy efficiency.

In addition to new equipment sales, a significant portion of Otis’s business derives from long-term service contracts and responsive maintenance work.