Institutional Investors Flock to Otter Tail Shares Amid Strong Quarterly Performance

Otter Tail Corporation is attracting significant attention from major financial institutions, with substantial buying activity coinciding with better-than-expected quarterly results. The utility company's shares have demonstrated notable strength, posting gains across five consecutive trading sessions as investor confidence grows.

The company's recent financial report revealed impressive second-quarter performance, with earnings per share reaching $1.85. This figure substantially exceeded analyst expectations of $1.74 per share. Revenue performance was equally strong, coming in at $333.04 million against consensus estimates of $329.60 million. The company's operational efficiency was reflected in key metrics, including a 16.85% return on equity and a robust net margin of 21.82%. Looking ahead, Otter Tail provided full-year 2025 guidance projecting earnings between $6.06 and $6.46 per share.

Major Financial Institutions Increase Stakes

Several prominent investment firms have recently established or expanded positions in Otter Tail:

• Envestnet Portfolio Solutions Inc. initiated a new position valued at $302,000, acquiring 3,913 shares
• HighMark Wealth Management LLC established a $26,000 position in the company
• Armstrong Advisory Group Inc. significantly boosted its holdings by 93.0%, bringing its total to 1,660 shares

Collectively, institutional investors and hedge funds now control 61.32% of Otter Tail's outstanding shares.

Should investors sell immediately? Or is it worth buying Otter Tail?

Analyst Outlook and Price Targets

Market researchers at KeyCorp have expressed particular optimism regarding Otter Tail's prospects. Their projection for fiscal year 2025 stands at $6.36 earnings per share, notably higher than the current consensus estimate of $5.88. The average analyst price target for the stock is $83.00, accompanied by a "Hold" recommendation.

Technical Analysis Presents Mixed Signals

Otter Tail shares recently closed at $78.40, bringing the company's market capitalization to $3.285 billion. Despite the five-day advancing streak, technical indicators offer conflicting perspectives:

• A buy signal triggered from the October 10th low
• The 3-month MACD indicator suggests buying activity
• However, long-term moving averages currently indicate a sell signal

Market participants won't have to wait long for additional clarity. Otter Tail is scheduled to release third-quarter 2025 results after market close on Monday, November 3, which may determine whether the current upward trend can maintain its momentum.