BNP Paribas Reduces Stake in Otis Worldwide to $4.58 Million

BNP Paribas has reduced its stake in Otis Worldwide Corporation, a leading manufacturer of vertical transportation systems, by 13.5% during the third quarter of 2023. According to recent filings with the Securities and Exchange Commission (SEC), the institutional investor now holds 50,276 shares valued at approximately $4.58 million. This reduction follows the sale of 7,851 shares during the period.

A number of other institutional investors have also adjusted their positions in Otis Worldwide. Notably, Boothbay Fund Management LLC significantly increased its holdings by an impressive 4,954.7%, now owning 106,300 shares worth $9.72 million after acquiring an additional 104,197 shares. Similarly, Aquatic Capital Management LLC raised its stake by 163.9%, bringing its total to 222,213 shares valued at $20.32 million. Algert Global LLC and Ameriprise Financial Inc. also boosted their positions, with Algert increasing its holdings by 705.2% and Ameriprise by 27.4%.

As of now, institutional investors and hedge funds collectively own 88.03% of Otis Worldwide’s stock. The company’s share price opened at $83.17 on a recent trading day, reflecting a 0.6% increase. The current market capitalization stands at $32.33 billion, with a price-to-earnings (P/E) ratio of 23.76 and a P/E growth (P/E/G) ratio of 2.50. Over the past year, Otis Worldwide’s stock has seen a low of $82.47 and a high of $105.95.

Quarterly Dividend Announcement

In addition to the changes in share ownership, Otis Worldwide announced a quarterly dividend of $0.42 per share, which was distributed on March 13, 2023. Investors who were on record by February 13, 2023, received this payment, marking an annualized dividend of $1.68 and a yield of 2.0%. The company’s dividend payout ratio currently stands at 48.00%, indicating a balanced approach to returning value to shareholders.

Analyst Insights and Market Reactions

Otis Worldwide has garnered attention from financial analysts recently. New Street Research set a price target of $98.00 for the stock, while JPMorgan Chase & Co. downgraded it from an “overweight” rating to “neutral,” maintaining the same price target. Wells Fargo & Company adjusted its target price from $95.00 to $92.00, citing an “equal weight” rating. Conversely, BNP Paribas Exane upgraded Otis from “neutral” to “outperform,” with a target of $105.00.

Analysts have varied opinions on the stock, with three rating it as a “Buy,” six giving it a “Hold,” and one issuing a “Sell” rating. The consensus rating is “Hold,” with an average target price of $101.44 according to MarketBeat.

In insider activities, Chief Accounting Officer Michael Patrick Ryan sold 1,182 shares for approximately $106,450.92, reducing his ownership significantly. Additionally, Executive Vice President Neil Green sold 6,000 shares for about $518,700.00. These transactions reflect a broader trend as insiders sold a total of 158,013 shares worth $14.34 million in the last quarter.

Otis Worldwide continues to play a vital role in the vertical transportation sector, focusing on the design, installation, and servicing of elevators and escalators. The company also provides modernization solutions for aging systems, enhancing their performance and energy efficiency. With ongoing developments in investment and stock performance, Otis Worldwide remains a key player to watch in the market.