Otter Tail Intrinsic Value Calculation – LSV Asset Management significantly reduces stake in Otter Tail Co. during 2nd quarter
September 19, 2024
☀️Trending News
OTTER TAIL ($NASDAQ:OTTR) Co. is a diversified energy company that provides electric, natural gas, and other services to customers in the Upper Midwest. The company also has operations in manufacturing, construction, and plastics. In recent news, it has been reported that LSV Asset Management has significantly reduced its stake in Otter Tail Co. during the 2nd quarter. A 13F filing by the company revealed that LSV Asset Management, a Chicago-based investment management firm, has decreased its holding in Otter Tail Co. by 46.1%. This news comes as a surprise to many investors, as LSV Asset Management had previously held a significant stake in Otter Tail Co. The decision to reduce their stake may indicate a change in their investment strategy or a lack of confidence in the company’s performance. It is important to note that Otter Tail Co. has been performing well in recent years, with consistent growth and strong financials.
However, the energy sector as a whole has been facing challenges and uncertainties, which may have influenced LSV Asset Management’s decision. As one of the largest institutional investors in Otter Tail Co., LSV Asset Management’s actions can have a significant impact on the stock price. Investors and analysts will be closely monitoring how this reduction in stake by LSV Asset Management will affect Otter Tail Co.’s stock and if other major shareholders will follow suit. As for now, it remains to be seen how this will impact the company’s long-term growth and if it will have any implications for the energy sector as a whole.
Stock Price
On Friday, the stock of OTTER TAIL Corporation opened at $77.9 and closed at $78.79, representing a 2.26% increase from its prior closing price of $77.05. This jump in stock price was attributed to LSV Asset Management, a Chicago-based investment firm, significantly reducing their stake in the company during the second quarter. This move by LSV Asset Management may suggest that they have lost confidence in OTTER TAIL’s performance and future prospects. This significant reduction in ownership by a major investor may also raise concern among other shareholders, as it could indicate a lack of faith in the company’s current trajectory. Some analysts speculate that the decision by LSV Asset Management to reduce their stake in OTTER TAIL could be due to the company’s financial performance. In its most recent quarterly report, OTTER TAIL reported a decline in revenue and net income compared to the same period last year.
However, it should also be noted that LSV Asset Management still holds a significant number of shares in OTTER TAIL, suggesting that they have not completely lost faith in the company. The investment firm may have simply decided to diversify their portfolio and reallocate their assets to other companies with stronger growth potential. Only time will tell if LSV Asset Management’s decision was a wise move or if they will regret reducing their stake in OTTER TAIL. As for now, shareholders and investors will be closely monitoring the company’s performance and any further actions taken by LSV Asset Management. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Otter Tail. More…
| Total Revenues | Net Income | Net Margin |
| 1.35k | 294.19 | 21.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Otter Tail. More…
| Operations | Investing | Financing |
| 404.5 | -289.29 | -3.83 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Otter Tail. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3.24k | 1.8k | 34.6 |
Key Ratios Snapshot
Some of the financial key ratios for Otter Tail are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.9% | 39.1% | 29.7% |
| FCF Margin | ROE | ROA |
| 8.7% | 17.6% | 7.7% |
Analysis – Otter Tail Intrinsic Value Calculation
This can be seen in their financial stability and strong performance in the market. In terms of intrinsic value, our proprietary Valuation Line indicates that the true worth of OTTER TAIL shares is around $68.7. This value takes into consideration various factors such as the company’s financial standing, industry trends, and future growth potential. However, it is important to note that currently, OTTER TAIL stock is being traded at $78.79. This means that the stock price is 14.7% higher than its intrinsic value, indicating that the stock may be slightly overvalued at the moment. Despite this, it is worth noting that OTTER TAIL has been consistently performing well in the market and has a strong track record of delivering positive returns to its shareholders. Therefore, while the stock may be slightly overvalued at present, it is still a sound investment option for those looking for long-term growth potential. Overall, GoodWhale believes that OTTER TAIL is a well-managed company with a solid financial standing and a promising future outlook. Investors should keep an eye on the stock and consider investing in it when the price falls closer to its intrinsic value. More…
Peers
In the electric utility industry, there is intense competition between Otter Tail Corp and its competitors: NextEra Energy Inc, DTE Energy Co, Exelon Corp. These companies are all vying for market share in the electric utility industry.
– NextEra Energy Inc ($NYSE:NEE)
NextEra Energy Inc is a clean energy company with a market cap of 156.59B as of 2022. The company has a Return on Equity of 6.09%. NextEra Energy Inc is the world’s largest generator of renewable energy from the wind and sun. The company also owns Florida Power & Light Company, one of the nation’s largest electric utilities.
– DTE Energy Co ($NYSE:DTE)
DTE Energy Co is a publicly traded energy company headquartered in Detroit, Michigan. The company is involved in the generation, transmission, and distribution of electricity and natural gas. As of 2022, the company had a market capitalization of 21.77 billion dollars and a return on equity of 12.47%. The company is the largest provider of electricity and natural gas in Michigan, serving over 3 million customers.
– Exelon Corp ($NASDAQ:EXC)
Exelon Corp is a publicly traded company with a market capitalization of $36.95 billion as of 2022. The company has a return on equity of 11.0%. Exelon Corp is engaged in the generation, transmission, and distribution of electricity and natural gas. The company operates through four business segments: Exelon Generation, Exelon Utilities, Exelon Business Services, and Exelon Transmission.
Summary
LSV Asset Management has reduced its stake in Otter Tail Co. by almost half in the 2nd quarter. This information is important for investors to consider as it may indicate a lack of confidence in the company’s performance. It is also a signal for potential investors to conduct further research and analysis on Otter Tail’s financials and market trends before making any investment decisions.
This move by LSV Asset Management could potentially impact the stock’s value and may be a reflection of their overall outlook on the company’s future prospects. Therefore, keeping track of these investment analysis updates is crucial for making informed decisions in the stock market.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
