Otter Tail (NASDAQ:OTTR) Stock Surges 9.6% - Should You Consider Buying?

Otter Tail Co. (NASDAQ:OTTR) saw its share price increase by 9.6% during trading on Tuesday, reaching a high of $83.90 before closing at $84.36. This surge comes after the stock had previously ended at $76.99. During this trading session, around 96,390 shares changed hands, a significant drop from the usual daily volume of 222,912 shares.

Analyst Insights

Otter Tail has been featured in various analyst reports recently. StockNews.com upgraded Otter Tail's shares from a "sell" to a "hold" rating as of November 14. Additionally, Siebert Williams Shank revised their rating from "strong sell" to "hold" on November 6.

Performance Overview

Otter Tail has a market capitalization of approximately $3.42 billion, along with a price-to-earnings (PE) ratio of 11.28 and a beta value of 0.57. The stock’s fifty-day simple moving average stands at $76.58, while the two-hundred-day average is at $79.61. Financially, the company has a current ratio of 2.17, a quick ratio of 1.66, and a debt-to-equity ratio of 0.58.

Dividend Announcement

The company has also announced an increase in its quarterly dividend, which will be distributed on March 10. Shareholders on record as of February 14 will receive a dividend of $0.525 per share, amounting to an annualized yield of 2.57% based on a total dividend of $2.10. This new payout is a positive adjustment from the previous quarterly dividend of $0.47, with the company's payout ratio currently at 29.01%.

Institutional Investment Activity

Several institutional investors have recently adjusted their positions in Otter Tail. Asset Planning Inc. acquired a new stake valued around $37,000 in the fourth quarter, while Wilmington Savings Fund Society FSB purchased shares worth approximately $39,000 in the third quarter. Allworth Financial LP increased their stake substantially by 132.8%, owning 547 shares valued at $43,000 after a recent purchase. Studio Investment Management LLC and Crews Bank & Trust have also made new investments, with respective stakes valued at around $50,000 and $81,000. Notably, institutional investors collectively own 61.32% of Otter Tail.

Company Overview

Otter Tail Corporation operates within the United States, focusing on electric utility, manufacturing, and plastic pipe businesses. It operates across three primary segments: Electric, Manufacturing, and Plastics. The Electric segment is responsible for generating, transmitting, distributing, and selling electricity primarily in Minnesota, North Dakota, and South Dakota, and actively participates in the Midcontinent Independent System Operator markets.

Conclusion

The recent uptick in Otter Tail's stock price might prompt some investors to consider whether it’s a good time to buy. While analysts generally rate it as a "hold," it's essential for potential investors to assess their own investment strategies and consider other available options.

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