Exploring Otter Tail Corporation (OTTR) Investor Profile: Who’s Buying and Why?

Ever wondered who's investing in Otter Tail Corporation and why? With a solid track record, Otter Tail's stock has caught the eye of diverse investors. Did you know that institutional investors held a significant 78.9% stake in Otter Tail as of the most recent data? But who are these key players, and what's driving their investment decisions? Are they drawn to Otter Tail's consistent dividend payouts, which have seen increases over the years, or perhaps the company's strategic investments in electric infrastructure and manufacturing? Understanding the investor profile can offer valuable insights into the market's sentiment and future expectations for Otter Tail Corporation. Let's dive into the details to uncover who's buying and the motivations behind their investment strategies.

Otter Tail Corporation (OTTR) Who Invests in [Company Name] and Why?

Understanding the investor profile of Otter Tail Corporation (OTTR) provides valuable insights into the company's stability, growth prospects, and overall market perception. By examining the composition of its investors, we can better understand the motivations driving investment decisions and the typical strategies employed by those holding OTTR stock. Here's a breakdown of the key investor types and their rationales for investing in Otter Tail Corporation.

Key Investor Types

The ownership structure of Otter Tail Corporation is distributed among several key investor types:

• Institutional Investors: These entities, including mutual funds, pension funds, and insurance companies, hold a significant percentage of OTTR's shares. Data indicates that institutional investors hold a substantial portion of Otter Tail Corporation's stock. Fintel reports that institutions hold approximately 85.25% of the shares. Other sources provide slightly different figures, with WallStreetZen stating 65.68%. Major institutional shareholders include:
  • BlackRock, Inc.: A substantial holder with a significant percentage of the company's shares.
  • Vanguard Group Inc: Another major institutional investor with a considerable stake.
  • State Street Corp: Holds a notable percentage of shares.
• Retail Investors: Individual investors also form a notable part of Otter Tail Corporation's shareholder base. According to WallStreetZen, retail investors account for approximately 30.40% of the ownership. TipRanks data indicates that retail investors hold around 38.01% of the company’s stock.
• Insiders: These are the company's executives and board members. Insiders hold a smaller percentage of the stock. WallStreetZen indicates insiders own about 3.92% of the company.
• Hedge Funds: While the specific percentage of ownership by hedge funds is not always explicitly detailed, their activity is closely monitored. Recent data shows that several hedge funds have adjusted their positions in OTTR, indicating active interest and trading.

Investment Motivations

Several factors attract different types of investors to Otter Tail Corporation:

• Growth Prospects: Otter Tail Corporation operates in diversified sectors, including electric utilities and manufacturing. The company's strategic focus on expanding its electric utility business, which aims to constitute approximately 65% of its overall earnings, appeals to investors seeking stable, long-term growth. The company's five-year capital spending plan reflects this focus.
• Dividends: Otter Tail Corporation has a consistent history of dividend payments, making it attractive to income-seeking investors. The company has paid quarterly dividends consecutively since 1938. In 2025, the quarterly dividend was increased to $0.525 per share, translating to an annual dividend rate of $2.10 per share, a 12.3% increase over the 2024 rate. This consistent dividend growth is a significant draw for investors.
• Market Position: As a diversified corporation with a strong presence in the electric utility and manufacturing sectors, Otter Tail Corporation holds a stable market position. Its operations in Minnesota, North Dakota, and South Dakota provide a reliable customer base.
• Financial Health: Otter Tail maintains a strong financial health score, characterized by robust liquidity and manageable debt levels. The company's financial performance in 2024, with diluted earnings per share of $7.17 and a consolidated return on equity of 19.3%, underscores its financial stability.

Investment Strategies

The investment strategies among Otter Tail Corporation investors vary depending on their investment goals and risk tolerance:

• Long-Term Holding: Many institutional investors adopt a long-term holding strategy, driven by the company's stable performance and consistent dividend payouts. These investors focus on the long-term growth and reliability of Otter Tail Corporation's diversified operations.
• Value Investing: Some investors are attracted to Otter Tail Corporation due to its attractive valuation metrics and strong profitability. These value investors seek companies that are undervalued by the market and have the potential for long-term appreciation.
• Dividend Capture: Income-seeking investors may employ a dividend capture strategy, buying shares before the ex-dividend date and selling them after the dividend is paid. Otter Tail Corporation's consistent dividend payments make it suitable for this strategy. The company's next ex-dividend date has not been announced yet. The previous ex-dividend date was on February 14, 2025, with a payment of $0.52 per share on March 10, 2025.
• Short-Term Trading: Hedge funds and other short-term traders may take positions in OTTR based on technical analysis, market trends, and specific events. These investors aim to capitalize on short-term price movements.

Institutional Ownership Details

Institutional investors play a crucial role in Otter Tail Corporation's ownership structure. Fintel reports that 638 institutional owners and shareholders have filed 13D/G or 13F forms with the Securities Exchange Commission (SEC), holding a total of 35,736,845 shares. The largest shareholders include:

• BlackRock, Inc.
• Vanguard Group Inc.
• IJR - iShares Core S&P Small-Cap ETF
• State Street Corp
• VTSMX - Vanguard Total Stock Market Index Fund Investor Shares

These institutions' investment decisions can significantly impact Otter Tail Corporation's stock price and overall market sentiment. Recent activity indicates that 159 institutional investors increased their positions in OTTR, while 157 decreased their positions in the most recent quarter.

Recent Financial Performance and Analyst Outlook

Otter Tail Corporation's recent financial results and analyst ratings provide additional context for understanding investor behavior:

• Record Earnings: In 2024, Otter Tail Corporation reported record earnings, with diluted earnings per share of $7.17 and a consolidated return on equity of 19.3%.
• Revenue: The company's revenue for 2024 was $1.33 billion.
• Dividend Increase: A 12% increase in the quarterly dividend to $0.525 per share, resulting in an annual dividend of $2.10 per share.
• Analyst Ratings: Otter Tail (OTTR) has been analyzed by 5 analysts, with a consensus rating of Buy.

Stock Price and Forecast

As of April 11, 2025, the share price was $78.66. Previously, on April 12, 2024, the share price was $83.01, representing a decline of 5.24% over that period.

Analyst predictions vary, but generally suggest a modest upside. The consensus target price for shares in Otter Tail is $82.00. Long-term forecasts remain positive, with some projections estimating the stock price could reach $126.07 by 2030.

In conclusion, Otter Tail Corporation's investor profile is diverse, comprising institutional, retail, and insider stakeholders. The company's consistent dividend payments, strategic focus on regulated operations, and strong financial health attract a variety of investment strategies, ranging from long-term holding to short-term trading. Understanding these investor types and their motivations is crucial for assessing the overall stability and future prospects of Otter Tail Corporation.

Otter Tail Corporation (OTTR) Institutional Ownership and Major Shareholders of Otter Tail Corporation (OTTR)

Institutional ownership in Otter Tail Corporation (OTTR) reflects the extent to which large financial institutions, such as mutual funds, pension funds, and hedge funds, hold shares in the company. Analyzing this ownership can provide insights into market sentiment and potential stock price movements.

As of December 31, 2024, the top institutional holders of Otter Tail Corporation (OTTR) include:

• BlackRock Fund Advisors: As one of the world's largest asset managers, BlackRock's holdings in Otter Tail Corporation (OTTR) may be part of broader index funds or actively managed portfolios.
• The Vanguard Group: Known for its index funds and low-cost investment options, Vanguard's stake in Otter Tail Corporation (OTTR) likely reflects its index-tracking strategies.
• State Street Global Advisors: Another major player in the asset management industry, State Street's investment in Otter Tail Corporation (OTTR) could be through various investment products, including exchange-traded funds (ETFs).
• Capital Research and Management Company: This firm often takes a long-term investment approach, suggesting confidence in Otter Tail Corporation (OTTR)'s sustained performance.
• Geode Capital Management: As an investment management firm that offers a variety of investment solutions, their holding in Otter Tail Corporation (OTTR) may be part of a diversified portfolio.

These institutional investors collectively hold a significant percentage of Otter Tail Corporation (OTTR)'s outstanding shares. Their investment decisions can influence the stock's trading volume and price volatility.

Recent changes in institutional ownership can indicate shifts in investor sentiment. For example, if several major institutional investors have increased their positions, it could signal positive expectations for the company's future performance. Conversely, a decrease in institutional holdings might suggest concerns about the company's prospects.

Institutional investors play a crucial role in Otter Tail Corporation (OTTR)'s stock price and overall strategy:

• Price Stability: Large institutional holdings can provide a degree of stability to the stock price, as these investors often have a long-term investment horizon.
• Influence on Corporate Governance: Institutional investors can exert influence on corporate governance matters, such as executive compensation and board composition, through proxy voting.
• Market Perception: The presence of reputable institutional investors can enhance the company's credibility and attract other investors.
• Strategic Guidance: Engagement with institutional investors can provide valuable feedback and insights into the company's strategic direction.

Understanding the composition and behavior of Otter Tail Corporation (OTTR)'s institutional shareholder base is essential for assessing market sentiment and potential risks and opportunities.

For further insights into Otter Tail Corporation's mission, vision, and core values, refer to Mission Statement, Vision, & Core Values of Otter Tail Corporation (OTTR).

Otter Tail Corporation (OTTR) Key Investors and Their Impact on Otter Tail Corporation (OTTR)

Understanding the investor profile of Otter Tail Corporation (OTTR) provides valuable insights into the company's stability, strategic direction, and potential for growth. Key investors can significantly influence company decisions and stock performance through their holdings and actions.

While specific real-time data on all individual investors might not be publicly available, institutional ownership provides a clear picture of major stakeholders. These institutions often hold substantial shares and can exert considerable influence.

Based on recent data, some of the notable institutional investors in Otter Tail Corporation (OTTR) include:

• BlackRock Fund Advisors: As a significant institutional holder, BlackRock's investment decisions can reflect broader market trends and investor confidence in Otter Tail Corporation (OTTR).
• The Vanguard Group: Vanguard's index and ETF holdings often represent a large percentage of shares in stable, dividend-paying companies like Otter Tail Corporation (OTTR).
• State Street Global Advisors: Similar to BlackRock and Vanguard, State Street's investment indicates long-term confidence in Otter Tail Corporation (OTTR)'s performance.

These major institutional investors typically have a long-term investment horizon, which can provide stability to Otter Tail Corporation (OTTR)'s stock price. Their influence is also seen in corporate governance matters, as they vote on key issues during shareholder meetings.

Investor influence can manifest in several ways:

• Strategic Direction: Large institutional investors can engage with the management regarding strategic decisions, influencing the company's focus on growth, sustainability, or shareholder returns.
• Corporate Governance: They play a crucial role in ensuring good corporate governance practices by voting on board members, executive compensation, and other key proposals.
• Stock Performance: Significant buying or selling activity by these investors can impact the stock price, reflecting market sentiment and investor confidence.

Recent moves by major investors, such as increasing or decreasing their stakes, are closely watched by the market. For instance, a large purchase by a prominent fund can signal positive expectations, while a significant sell-off might raise concerns.

To provide a clearer picture, here is a hypothetical example of institutional ownership data (note that actual percentages and share numbers fluctuate):

Tracking these investors and their actions provides valuable context for understanding market sentiment and potential future movements in Otter Tail Corporation (OTTR)'s stock.

For more insight into Otter Tail Corporation's values and long-term goals, explore: Mission Statement, Vision, & Core Values of Otter Tail Corporation (OTTR).

Otter Tail Corporation (OTTR) Market Impact and Investor Sentiment

Understanding investor sentiment and market reactions to Otter Tail Corporation (OTTR) is crucial for current and potential shareholders. Analyzing these dynamics provides insights into the stock's potential future performance and stability.

Recent market data indicates several key trends in investor behavior and sentiment regarding Otter Tail Corporation:

• Institutional Ownership: A significant portion of OTTR's shares are held by institutional investors. Changes in their positions can heavily influence the stock price.
• Analyst Ratings: Analyst ratings provide a snapshot of how experts view the stock's potential. Upgrades or downgrades can trigger immediate market reactions.
• Earnings Reports: Quarterly and annual earnings reports are critical events. Positive results typically boost investor confidence, while disappointing figures can lead to sell-offs.
• Market Trends: Broader market trends, such as interest rate changes or economic indicators, also play a role in shaping investor sentiment towards OTTR.

Investor sentiment towards Otter Tail Corporation can be categorized as follows:

Positive Sentiment:

Positive sentiment often stems from strong financial performance, strategic investments, and favorable regulatory outcomes. For example, if OTTR reports earnings that exceed expectations, investors are likely to view the stock favorably. Additionally, successful expansion into new markets or the implementation of innovative technologies can bolster confidence.

Neutral Sentiment:

Neutral sentiment typically arises when the company's performance is in line with expectations, and there are no major catalysts driving significant price movements. During these periods, the stock price may remain relatively stable, with investors awaiting further developments or data points before making decisive moves.

Negative Sentiment:

Negative sentiment can be triggered by various factors, including earnings misses, regulatory challenges, or broader economic downturns. For instance, if OTTR announces lower-than-expected earnings or faces increased regulatory scrutiny, investors may become bearish on the stock, leading to selling pressure.

Recent market reactions to changes in ownership or large investor moves have been notable. Significant increases in institutional ownership often correlate with positive stock performance, as these investors typically conduct thorough due diligence before investing. Conversely, large sell-offs by major shareholders can create uncertainty and potentially lead to a decline in the stock price.

Analyst perspectives play a crucial role in shaping market perceptions of Otter Tail Corporation. Analysts provide in-depth research reports that offer insights into the company's financial health, growth prospects, and competitive positioning. Their recommendations can influence both retail and institutional investors.

Here’s a look at how analyst ratings can impact investor behavior:

• Buy Ratings: A buy rating from a reputable analyst can signal to investors that the stock is undervalued and has significant upside potential.
• Hold Ratings: A hold rating suggests that the stock is fairly valued, and investors should maintain their current positions.
• Sell Ratings: A sell rating indicates that the stock is overvalued or faces significant risks, prompting investors to consider selling their shares.

For example, if several analysts issue buy ratings following a positive earnings report, the stock price may experience a notable increase as more investors pile in. Conversely, a series of downgrades could lead to a decline in the stock price.

Understanding the dynamics between investor sentiment, market reactions, and analyst perspectives is essential for making informed investment decisions regarding Otter Tail Corporation. By closely monitoring these factors, investors can better assess the risks and opportunities associated with the stock.

To gain further insights into Otter Tail Corporation's financial standing, consider exploring this resource: Breaking Down Otter Tail Corporation (OTTR) Financial Health: Key Insights for Investors