Canada Post Corp Registered Pension Plan Takes Position in Otis Worldwide Co. (NYSE:OTIS)
Canada Post Corp Registered Pension Plan has recently made a significant move by purchasing new shares in Otis Worldwide Co. (NYSE:OTIS) during the fourth quarter. As per its latest Form 13F filing with the Securities & Exchange Commission, the institutional investor acquired 29,381 shares, valued at approximately $2,721,000.
This acquisition is noteworthy as it highlights the growing interest and confidence of institutional investors in Otis Worldwide, a company well-regarded in the elevator and escalator manufacturing and service sector.
Several other hedge funds have also adjusted their holdings in Otis Worldwide during the same period. Resonant Capital Advisors LLC increased its ownership by 3.1%, now holding 3,455 shares valued at $320,000. Montis Financial LLC raised its stake by 5.2%, amounting to 2,216 shares worth $205,000. Similarly, Dorsey & Whitney Trust CO LLC, Mesirow Financial Investment Management Inc., and PFG Investments LLC expanded their positions, reflecting a broader trend of investment in Otis Worldwide.
Institutional investors and hedge funds collectively control 88.03% of the company’s stock, indicating a substantial level of institutional trust and investment in the company’s future performance.
Several equity research analysts have provided insights into Otis Worldwide’s stock. JPMorgan Chase & Co. adjusted their price objective for Otis shares from $105.00 to $88.00, setting a “neutral” rating. Wells Fargo & Company modified their price target from $100.00 to $95.00, while Barclays raised theirs from $91.00 to $92.00, offering an “underweight” rating. The stock carries a consensus rating of “Hold” with an average price target of $100.88 among analysts.
Currently, Otis Worldwide shares are trading at $98.58. The company has a market cap of $39.09 billion, a P/E ratio of 24.28, and a beta of 1.00, indicating moderate volatility. Otis Worldwide’s stock fluctuated with a low of $89.70 and a high of $106.83 over the past year.
On the financial performance front, Otis Worldwide recently announced its quarterly earnings. The company reported an EPS of $0.93, slightly below the consensus estimate of $0.95. It boasted a net margin of 11.53% with a negative return on equity of 31.76%. The forecast for the company’s EPS for the current year stands at 4.04.
Additionally, Otis Worldwide declared a quarterly dividend of $0.39 per share, paid out recently, equating to an annual dividend yield of 1.58%. The company’s payout ratio stands at 38.42%, indicating a stable return for investors.
In a strategic move, Otis Worldwide’s Board of Directors initiated a stock repurchase program, authorizing the buyback of up to $2.00 billion in outstanding shares, equivalent to approximately 5.4% of its shares. Such repurchase programs often signal management’s belief that the company’s stock is undervalued, potentially enhancing shareholder value.
In terms of insider movements, several key executives have engaged in selling company stock recently. EVP Peiming Zheng sold 32,694 shares at an average price of $95.43, totaling $3,119,988.42. EVP Nora E. Lafreniere also sold 1,700 shares, revealing strategic maneuvers within the company’s leadership.
Otis Worldwide Corporation is a leading entity in designing, manufacturing, and servicing elevators and escalators globally. The company operates primarily in New Equipment and Service segments, offering products for residential, commercial, and infrastructure projects.
Given the financial metrics and strategic moves of Otis Worldwide, potential investors may find the company’s outlook appealing, though it is essential for investors to consider the consensus Hold rating and explore other top-rated stocks as recommended by analysts during their investment decisions.
