PineStone Asset Management Inc. has significantly increased its holdings in Otis Worldwide, now owning 4,464,131 shares valued at approximately $429.7 million after acquiring an additional 2,590,780 shares in the last quarter. This move reflects a broader trend among institutional investors, as Sarasin & Partners LLP also raised its stake by 27.2%, bringing its total to 4,135,271 shares worth $398.1 million following the purchase of 883,659 shares. Legal & General Group Plc and Dimensional Fund Advisors LP have similarly expanded their positions, with increases of 0.4% and 4.2%, respectively. The growing interest from hedge funds and institutional investors is notable, as they collectively own 88.03% of Otis Worldwide's stock.
Otis Worldwide Corporation, a leader in the manufacturing, installation, and servicing of elevators and escalators, operates primarily in the United States and China. The company is divided into two segments: New Equipment and Service. The New Equipment segment focuses on designing and installing a variety of elevators and escalators for both residential and commercial applications, as well as infrastructure projects. This diversified approach positions Otis Worldwide as a key player in the global market for vertical transportation solutions.
UBS Group has recently initiated coverage on Otis Worldwide, assigning a "neutral" rating with a price target of $113.00, suggesting a potential upside of 12.77% from the current stock price. Other analysts have also weighed in, with Morgan Stanley setting an "equal weight" rating and a target of $97.00, while Royal Bank of Canada reaffirmed an "outperform" rating with a target of $110.00. The consensus among analysts currently leans towards a "Hold" rating, with an average target price of $104.57, indicating a cautious outlook on the stock's performance.
In trading activity, shares of Otis Worldwide saw a slight increase of 0.5%, reaching $100.20. The stock has experienced a one-year range, with a low of $82.43 and a high of $106.33. With a market capitalization of $40.03 billion and a price-to-earnings ratio of 24.99, the stock's performance reflects investor sentiment amid fluctuating market conditions. The company's fifty-day moving average stands at $99.99, while the 200-day moving average is at $97.19, indicating a stable trading range.
Otis Worldwide recently reported its quarterly earnings, revealing earnings per share (EPS) of $0.96, which fell short of analysts' expectations of $0.97. The company reported revenue of $3.55 billion, slightly below the consensus estimate of $3.59 billion, although this represented a 0.7% increase compared to the same quarter last year. The net margin was reported at 11.48%, with a negative return on equity of 31.28%, raising questions about the company's profitability metrics.
In a notable insider transaction, Executive Vice President Abbe Luersman sold 9,000 shares at an average price of $101.02, totaling approximately $909,180. Following this sale, Luersman retains 9,992 shares valued at over $1 million. This transaction highlights the ongoing activity among corporate insiders, who collectively own a mere 0.23% of the company's stock, suggesting a limited insider influence on overall stock performance.
Recent modifications in holdings by hedge funds indicate a strategic shift in investment approaches towards Otis Worldwide. Massachusetts Financial Services Co. MA increased its stake by 12.4%, now owning 8,247,918 shares valued at $793.9 million after acquiring an additional 907,972 shares. This trend of increasing stakes among institutional investors underscores a growing confidence in Otis Worldwide's long-term prospects, despite the mixed signals from recent earnings reports.
The heightened interest from institutional investors may also reflect broader market trends, as many are seeking stable investments amid economic uncertainties. The significant ownership by hedge funds and other institutional players suggests that Otis Worldwide is viewed as a resilient option in the current market landscape, particularly given its established position in the elevator and escalator manufacturing sector. As the company continues to navigate the complexities of the market, the actions of these institutional investors will likely play a crucial role in shaping its future trajectory.