Menora Mivtachim Holdings LTD. has dramatically reduced its investment in Otis Worldwide Corporation, according to a recent filing with the Securities and Exchange Commission (SEC). In the second quarter of 2023, the investment firm decreased its holdings by an astonishing 99.7%, leaving it with just 3,500 shares after selling 1,096,496 shares. At the close of the quarter, these remaining shares were valued at approximately $347,000.
This substantial divestment comes amid a broader trend of institutional investors adjusting their positions in Otis Worldwide. Notably, T. Rowe Price Investment Management Inc. entered the fray by acquiring a new stake in the company during the first quarter, valued at $612,000. Similarly, the State of Wyoming significantly increased its holdings by 278.6%, now owning 7,406 shares valued at $764,000 after adding 5,450 shares. Groupe la Francaise also expanded its position by 14.2%, bringing its total to 43,418 shares worth $4,472,000.
Canada Pension Plan Investment Board bolstered its stake by 53.1%, now holding 470,781 shares valued at $48,585,000 following the acquisition of an additional 163,231 shares. Additionally, Compound Planning Inc. purchased a new stake valued at approximately $314,000. Overall, institutional and hedge fund investors now own 88.03% of Otis Worldwide’s stock.
Insider Transactions and Performance Metrics
In related news, CAO Michael Patrick Ryan sold 3,028 shares of Otis Worldwide on November 5, 2023, at an average price of $91.69. This transaction amounted to approximately $277,637.32, reducing his ownership by 53.54%. Following the sale, Ryan retained 2,628 shares, valued at around $240,961.32. Insiders collectively hold 0.23% of the company’s stock.
Otis Worldwide recently posted its earnings results on October 29, 2023, reporting earnings per share (EPS) of $1.05, surpassing the consensus estimate of $1.00 by $0.05. The company’s revenue for the quarter was $3.69 billion, exceeding analysts’ expectations of $3.65 billion. This represents a year-over-year revenue increase of 4.0%, compared to an EPS of $0.96 during the same period last year. For fiscal year 2025, Otis Worldwide has guided EPS expectations between $4.040 and $4.080.
Dividend Announcement and Analyst Ratings
The company also declared a quarterly dividend of $0.42 per share, which was paid on December 5, 2023, to stockholders of record as of November 14, 2023. This dividend reflects an annualized payout of $1.68, yielding 1.9%. The ex-dividend date was also November 14, 2023. The company’s payout ratio stands at 49.56%.
Wall Street analysts have varied opinions on Otis Worldwide. Weiss Ratings maintained a “hold (c)” rating, while BNP Paribas upgraded its rating from “hold” to “strong-buy.” Wells Fargo & Company raised its price target from $93.00 to $95.00 while maintaining an “equal weight” rating. Zacks Research also upgraded the stock from a “strong sell” to a “hold” rating. Currently, the consensus rating is “Hold” with an average target price of $103.88.
Otis Worldwide Corporation is engaged in the manufacturing, installation, and servicing of elevators and escalators, operating in the United States, China, and globally. The company’s operations are divided into two segments: New Equipment and Service, which cater to both residential and commercial needs.
As institutional investments continue to shift, the future trajectory of Otis Worldwide will be closely monitored by analysts and investors alike.
