Otis Worldwide (NYSE:OTIS) Shares Gap Down After Earnings Miss

Otis Worldwide Co. (NYSE:OTIS) shares gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $101.37, but opened at $97.16. Otis Worldwide shares last traded at $98.18, with a volume of 278,610 shares changing hands.

The company reported $0.96 earnings per share for the quarter, missing the consensus estimate of $0.97 by ($0.01). The firm had revenue of $3.55 billion for the quarter, compared to analysts’ expectations of $3.59 billion. Otis Worldwide had a net margin of 11.48% and a negative return on equity of 31.28%. The company’s quarterly revenue was up .7% on a year-over-year basis. During the same period in the previous year, the company earned $0.95 EPS.

Otis Worldwide Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, December 6th. Shareholders of record on Friday, November 15th will be given a dividend of $0.39 per share. This represents a $1.56 annualized dividend and a yield of 1.59%. Otis Worldwide’s payout ratio is currently 38.90%.

Wall Street Analyst Weigh In

OTIS has been the subject of several research analyst reports. Wolfe Research cut shares of Otis Worldwide from an “outperform” rating to a “peer perform” rating in a research report on Tuesday, October 8th. Royal Bank of Canada reaffirmed an “outperform” rating and issued a $110.00 target price on shares of Otis Worldwide in a research report on Thursday, September 19th. Morgan Stanley initiated coverage on shares of Otis Worldwide in a research report on Friday, September 6th. They issued an “equal weight” rating and a $97.00 target price for the company. Wells Fargo & Company dropped their target price on shares of Otis Worldwide from $108.00 to $105.00 and set an “equal weight” rating for the company in a research report on Thursday. Finally, Barclays dropped their target price on shares of Otis Worldwide from $96.00 to $94.00 and set an “equal weight” rating for the company in a research report on Thursday. Eight research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $102.00.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Riverview Trust Co purchased a new position in Otis Worldwide in the third quarter worth about $25,000. Meeder Asset Management Inc. raised its holdings in shares of Otis Worldwide by 264.9% during the second quarter. Meeder Asset Management Inc. now owns 270 shares of the company’s stock valued at $26,000 after purchasing an additional 196 shares during the last quarter. Jamison Private Wealth Management Inc. raised its holdings in shares of Otis Worldwide by 5,720.0% during the second quarter. Jamison Private Wealth Management Inc. now owns 291 shares of the company’s stock valued at $28,000 after purchasing an additional 286 shares during the last quarter. Cranbrook Wealth Management LLC raised its holdings in shares of Otis Worldwide by 675.7% during the second quarter. Cranbrook Wealth Management LLC now owns 287 shares of the company’s stock valued at $28,000 after purchasing an additional 250 shares during the last quarter. Finally, Northwest Investment Counselors LLC purchased a new position in shares of Otis Worldwide during the third quarter valued at approximately $28,000. 88.03% of the stock is owned by hedge funds and other institutional investors.

Otis Worldwide Stock Down 0.1 %

The firm’s fifty day moving average price is $99.01 and its two-hundred day moving average price is $96.87. The stock has a market capitalization of $39.33 billion, a PE ratio of 24.49 and a beta of 1.03.

Otis Worldwide Company Profile

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.