Otis Worldwide Co. (NYSE:OTIS) Receives Average Rating of “Hold” from Brokerages

Otis Worldwide Co. (NYSE:OTIS) has been assigned a consensus rating of “Hold” from the nine analysts that are currently covering the firm, MarketBeat.com reports. Two investment analysts have rated the stock with a sell rating, five have assigned a hold rating and two have issued a buy rating on the company. The average 1 year target price among brokers that have updated their coverage on the stock in the last year is $102.88.

Several brokerages recently commented on OTIS. Wells Fargo & Company cut their price objective on Otis Worldwide from $100.00 to $95.00 and set an “equal weight” rating for the company in a report on Thursday, January 30th. Barclays decreased their price objective on Otis Worldwide from $94.00 to $91.00 and set an “underweight” rating on the stock in a research note on Wednesday, January 8th. Wolfe Research downgraded Otis Worldwide from a “peer perform” rating to an “underperform” rating and set a $104.00 price objective for the company. in a research note on Thursday, December 12th. JPMorgan Chase & Co. lowered their price target on shares of Otis Worldwide from $108.00 to $105.00 and set a “neutral” rating on the stock in a report on Thursday, January 30th. Finally, UBS Group began coverage on Otis Worldwide in a research note on Wednesday, November 13th. They issued a “neutral” rating and a $113.00 price target for the company.

Otis Worldwide Price Performance

Shares of NYSE:OTIS opened at $97.56 on Friday. Otis Worldwide has a 1 year low of $90.12 and a 1 year high of $106.33. The stock’s 50-day moving average is $94.64 and its 200 day moving average is $97.20. The company has a market cap of $38.68 billion, a PE ratio of 24.03 and a beta of 1.06.

Otis Worldwide (NYSE:OTIS) last released its earnings results on Wednesday, January 29th. The company reported $0.93 EPS for the quarter, missing the consensus estimate of $0.95 by ($0.02). Otis Worldwide had a negative return on equity of 31.76% and a net margin of 11.53%. Analysts expect that Otis Worldwide will post 4.03 EPS for the current fiscal year.

Otis Worldwide declared that its Board of Directors has initiated a share repurchase program on Thursday, January 16th that permits the company to repurchase $2.00 billion in outstanding shares. This repurchase authorization permits the company to reacquire up to 5.4% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s leadership believes its shares are undervalued.

Otis Worldwide Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, March 7th. Stockholders of record on Friday, February 14th will be given a $0.39 dividend. This represents a $1.56 annualized dividend and a dividend yield of 1.60%. The ex-dividend date is Friday, February 14th. Otis Worldwide’s payout ratio is 38.42%.

Insider Activity

In other news, CEO Judith Fran Marks sold 38,012 shares of Otis Worldwide stock in a transaction that occurred on Wednesday, February 5th. The shares were sold at an average price of $94.41, for a total transaction of $3,588,712.92. Following the completion of the transaction, the chief executive officer now directly owns 245,883 shares of the company’s stock, valued at $23,213,814.03. The trade was a 13.39 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Nora E. Lafreniere sold 4,775 shares of the firm’s stock in a transaction on Wednesday, February 5th. The shares were sold at an average price of $94.41, for a total transaction of $450,807.75. Following the sale, the executive vice president now owns 24,927 shares in the company, valued at approximately $2,353,358.07. This represents a 16.08 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 105,621 shares of company stock worth $10,046,255 over the last 90 days. 0.23% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Otis Worldwide

A number of hedge funds have recently bought and sold shares of OTIS. Riverview Trust Co purchased a new stake in Otis Worldwide in the 3rd quarter worth $25,000. Transce3nd LLC purchased a new stake in shares of Otis Worldwide during the 4th quarter valued at approximately $25,000. Northwest Investment Counselors LLC acquired a new stake in Otis Worldwide during the third quarter worth $28,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Otis Worldwide in the 4th quarter valued at $28,000. Finally, Ashton Thomas Securities LLC purchased a new position in shares of Otis Worldwide during the 3rd quarter worth $29,000. Hedge funds and other institutional investors own 88.03% of the company’s stock.

About Otis Worldwide

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects.