Otter Tail Corp VP sells shares worth $354,960 By Investing.com

In a recent transaction, Jennifer O. Smestad, Vice President, General Counsel, and Corporate Secretary of Otter Tail Corp (NASDAQ:), sold 4,000 shares of the company’s common stock. The sale took place on August 13, 2024, with the shares being sold at a weighted average price of $88.74. The transaction was part of an automated trading plan and resulted in a total sale value of $354,960.

The shares were sold in multiple transactions at prices ranging from $88.21 to $89.39, as detailed in a footnote from the report. The transactions were executed automatically pursuant to a Rule 10b5-1 trading plan, which was adopted by Smestad earlier that year on May 13, 2024.

Following the sale, Smestad’s direct holdings in Otter Tail Corp amount to 12,300 shares. These holdings include shares held jointly with her spouse and shares acquired through various company plans and awards. Additionally, indirect holdings through an Employee Stock Ownership Plan (ESOP) and by her daughter total 539 shares of common stock.

Investors often monitor insider transactions as they can provide insights into an executive’s view of the company’s prospects. Otter Tail Corp, with its headquarters in Fergus Falls, Minnesota, operates in the electric services industry. The company’s stock trades on the NASDAQ under the ticker symbol OTTR.

In other recent news, Otter Tail Corporation reported a 6% increase in diluted earnings per share (EPS) for the second quarter, reaching $2.07, primarily driven by robust performance in its Plastics and Manufacturing segments. The company has also raised its 2024 earnings guidance to a range of $6.77 to $7.07. In addition, Otter Tail has revealed a five-year capital spending plan focusing on renewable resources, transmission investment, and technology, indicating its readiness for future growth.

Despite a decrease in Electric segment earnings due to unfavorable weather, the company remains optimistic about future demand and maintains a strong cash position, eliminating the need for external equity for the next five years. However, it is worth noting that the Manufacturing segment is anticipated to face end market demand headwinds, potentially softening conditions in the second half of 2024.

These recent developments underline Otter Tail’s proactive approach to its growth strategy, even as it navigates challenges in certain segments. The company’s updated earnings guidance and capital spending plan reflect its commitment to translating rate base growth into earnings growth.

InvestingPro Insights

As investors evaluate the implications of the insider sale at Otter Tail Corp (NASDAQ:OTTR), it’s worth considering the company’s financial health and market performance. Otter Tail Corp has demonstrated a commitment to shareholder returns, as evidenced by its remarkable history of raising dividends for 54 consecutive years, a testament to its consistent performance and stable financials. The company’s ability to maintain and grow its dividends is further supported by its cash flows, which can sufficiently cover interest payments, indicating a sound financial structure.

From a valuation perspective, Otter Tail Corp is trading at a low P/E ratio of 11.76, which is attractive relative to its near-term earnings growth. This suggests that the stock may be undervalued considering its earnings potential. Additionally, with a PEG ratio of 0.82 as of the last twelve months ending Q2 2024, the company’s price-to-earnings growth is appealing, potentially offering an opportunity for investors seeking value with growth prospects.

InvestingPro Tips highlight that Otter Tail Corp operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, indicating a stable financial position that could weather economic fluctuations. For those interested in further insights, there are an additional 10 InvestingPro Tips available for Otter Tail Corp, which can be found at https://www.investing.com/pro/OTTR.

InvestingPro Data metrics reveal that Otter Tail Corp has a market capitalization of $3.67 billion and has maintained a steady revenue stream with $1.36 billion over the last twelve months as of Q2 2024. The company’s gross profit margin stands at a healthy 43.27%, reflecting efficient operations and cost management. These data points, alongside the company’s consistent dividend growth, which was 6.86% in the last twelve months as of Q2 2024, provide a comprehensive picture of Otter Tail Corp’s financial robustness and its appeal to dividend-focused investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.