ExodusPoint Capital Management LP Acquires Stake in Otter Tail Co. for $2.63 Million
December 23, 2022
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Otter Tail Intrinsic Value – It is a diversified company providing products and services to a variety of industries, including energy, manufacturing and technology. The company is primarily involved in the production, distribution and sale of power and energy, industrial products and services, healthcare equipment and supplies, and manufacturing components. The announcement that ExodusPoint Capital Management LP has acquired a $2.63 million stake in Otter Tail ($NASDAQ:OTTR) Co. has come as a surprise to many investors. ExodusPoint Capital Management LP is a global private equity firm focusing on direct investments and other opportunities in the technology, media, telecommunications, healthcare, industrial and consumer sectors. They have a history of successful investments in the companies they have invested in, and their involvement with Otter Tail Co. marks their latest move in the sector.
The acquisition by ExodusPoint Capital Management LP is seen as a significant endorsement of the potential of Otter Tail Co., and it could help the company to further expand its operations. The acquisition could also help create more value for shareholders as it will allow them to benefit from the firm’s expertise and resources in the industry. It remains to be seen how this investment will impact the future of Otter Tail Co., but it is clear that the company is now in a stronger position than ever before. With the backing of a well-respected firm such as ExodusPoint Capital Management LP, Otter Tail Co. can now look forward to greater success in the future.
Share Price
On Monday, OTTER TAIL Co. experienced a 1.0% decrease in its stock prices when the market opened at $57.9 and closed at $57.2. This news is likely to bode well for the future of OTTER TAIL as they can use this investment to further strengthen their position in the market. The capital from ExodusPoint Capital Management LP can be used to expand operations, research new products, and hire additional personnel. This will help OTTER TAIL to gain a competitive edge over its competitors and establish itself as a leader in its respective industry.
The influx of capital will provide the necessary resources for OTTER TAIL to stay competitive and continue their success in the market. It is likely that this news will have a positive impact on OTTER TAIL’s stock prices as investors become more confident in the company’s future prospects. 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 |
| 1.49k | 293.8 | 19.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Otter Tail. More…
| Operations | Investing | Financing |
| 364.46 | -181.98 | -110.77 |
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 |
| 2.9k | 1.71k | 26.82 |
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 |
| 17.3% | 47.4% | 27.3% |
| FCF Margin | ROE | ROA |
| 12.5% | 22.1% | 8.8% |
VI Analysis – Otter Tail Intrinsic Value
Otter Tail Corporation is a diversified energy company with a long-term potential reflected in its fundamentals. The VI app provides a simple analysis of the company that shows the intrinsic value of its stock is around $70.4. Currently, the stock is being traded at $57.2, which is 19% undervalued. This indicates a buying opportunity for investors, as the stock price is likely to increase in the future. Additionally, the company has been able to consistently increase its dividend payout ratio, indicating that it has been able to generate ample profits to reinvest in its operations and pay out dividends to shareholders. Overall, Otter Tail Corporation’s fundamentals point to a long-term potential that is undervalued by 19%. With a strong financial position and a consistent record of growth, it is likely that the stock price will increase over time. More…
VI Peers
In the electric utility industry, there is intense competition between Otter Tail Corp and its competitors: NextEra Energy Inc, DTE Energy Co, Exelon Corp. These companies are all vying for market share in the electric utility industry.
– NextEra Energy Inc ($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
Investing in Otter Tail Corporation can be a lucrative and rewarding opportunity for investors. The company is a diversified electric utility, manufacturing and tourism company with operations in Minnesota and North Dakota. Its manufacturing segment produces products such as power transformers and industrial components. Its tourism segment operates resorts, marinas and recreational facilities on several Minnesota lakes. Otter Tail has a long history of providing dependable products and services to its customers. Its stock is listed on the Nasdaq Stock Market and it has grown to become a large and successful mid-cap electricity provider with a market capitalization of over $2 billion. ExodusPoint Capital Management LP recently acquired a stake in Otter Tail for $2.63 million. This could be seen as a vote of confidence in the company, as ExodusPoint is a large and established hedge fund.
They are known for their ability to make informed investments in the market. Investing in Otter Tail can be a good option for those looking for both steady income and potential growth. Furthermore, its price-to-earnings ratio is lower than the industry average, indicating that it could be undervalued and offer potential capital gains to investors as well. In conclusion, investing in Otter Tail Corporation can be a great way to gain steady income and capital growth. The company has a long history of providing reliable products and services, and its most recent investment by ExodusPoint Capital Management LP could be seen as a vote of confidence in the company’s prospects. Investors should do their own research and consult with a financial professional before making any investment decisions.
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