Otter Tail (NASDAQ:OTTR) Trading Up 9.6% Following Strong Earnings

Otter Tail Co. (NASDAQ:OTTR - Get Free Report)'s stock price traded up 9.6% during mid-day 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. 96,390 shares traded hands during mid-day 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 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.26 by $0.04. The firm had revenue of $303.11 million during the quarter, compared to analyst estimates of $314.75 million. Otter Tail had a return on equity of 18.96% and a net margin of 22.67%.

Otter Tail Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, March 10th. Shareholders of record on Friday, February 14th will be paid a dividend of $0.525 per share. 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. The ex-dividend date is Friday, February 14th. Otter Tail's dividend payout ratio (DPR) is currently 29.29%.

Wall Street Analyst Weigh In

OTTR has been the topic of several recent analyst reports. Siebert Williams Shank upgraded Otter Tail from a "strong sell" rating to a "hold" rating in a research note on Wednesday, November 6th. StockNews.com upgraded Otter Tail from a "sell" rating to a "hold" rating in a research note on Thursday, November 14th.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in OTTR. Creative Planning raised its holdings in shares of Otter Tail by 14.9% during the third quarter. Creative Planning now owns 7,218 shares of the utilities provider's stock valued at $564,000 after purchasing an additional 937 shares during the last quarter. International Assets Investment Management LLC boosted its position in Otter Tail by 3,339.9% in the third quarter. International Assets Investment Management LLC now owns 76,434 shares of the utilities provider's stock worth $5,974,000 after purchasing an additional 74,212 shares during the last quarter. Allworth Financial LP boosted its position in Otter Tail by 132.8% in the third quarter. Allworth Financial LP now owns 547 shares of the utilities provider's stock worth $43,000 after purchasing an additional 312 shares during the last quarter. James Investment Research Inc. boosted its position in Otter Tail by 6.1% in the third quarter. James Investment Research Inc. now owns 8,302 shares of the utilities provider's stock worth $649,000 after purchasing an additional 475 shares during the last quarter. Finally, Covestor Ltd boosted its position in Otter Tail by 39.1% in the third quarter. Covestor Ltd now owns 1,563 shares of the utilities provider's stock worth $122,000 after purchasing an additional 439 shares during the last quarter. 61.32% of the stock is owned by hedge funds and other institutional investors.

Otter Tail Price Performance

The firm has a market capitalization of $3.41 billion, a PE ratio of 11.36 and a beta of 0.57. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.03 and a quick ratio of 1.66. The firm has a 50-day simple moving average of $76.80 and a 200-day simple moving average of $79.55.

Otter Tail Company Profile

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.