HSBC Securities raised the price target for the Otis Worldwide Corporation (NYSE:OTIS) stock from “a Reduce” to “a Hold”. The rating was released on March 29, 2021. The stock was initiated by HSBC Securities, who disclosed in a research note on June 29, 2020, to Reduce and set the price objective to $44. In their research brief published June 18, 2020, Argus analysts initiated the Otis Worldwide Corporation stock to Buy with a price target of $72.
Historical Earnings Surprises and Revenue Forecasts
Profit is the most critical financial performance measure. Every investor in a business is looking forward to the earnings report as stock price to increase when earnings exceed market expectations and progressively decrease when earnings do not meet expectations. The firm reported an earnings per share (EPS) of $0.72 during the last quarter as opposed to a consensus estimate of $0.63, which indicates the company beat its estimate by $0.09, which implies that the company surprised the market by 14.30%. It appears that the average earnings per share estimate for the current quarter (ending in Jun 2021) is $0.71. This is an average of 9 analysts’ earnings, where the high earnings per share estimate is $0.74 and the low earnings per share estimate is $0.69. According to 8 analyst estimates, an average revenue estimate of $3.45B is projected for the current quarter with a high revenue estimate of $3.48B and a low estimate of $3.4B.
The latest trade, Performances and Moving Averages give us the following Picture
The share price of Otis Worldwide Corporation (NYSE:OTIS) raised 3.58% to close Tuesday’s market session at $79.00, higher as compared to yesterday’s close. The stock price fluctuated between $76.12 and $79.26 throughout the trading session with the volume trading being 6121372 shares, which represented a significant variation when compared to the three months average volume of 2.77 million shares. The firm’s stock price fluctuated 12.10% within the last five trades and 14.43% within the last 30 trades, which was a significant change from the beginning of this year. Despite the fact that the share price increased 24.51% in the last 6 months and 24.39% was added to its value over the previous 3 months. OTIS stock is trading at a margin of 11.99%, 16.96% and 22.31% apart from the 20-Day, 50-Day and 200-Day Simple Moving Average prices.
As of the close of trading, OTIS deals in the Industrials domain. The stock is trading 2.76 percent below its 52-week high and 67.37 percent above its 52-week low. For example, looking both at the price and the high and low measurements of 52 weeks will give you a clearer picture of the direction the price is heading. The firm’s Weighted Alpha is 60.57. A positive weighted alpha indicates the firm has done well over the course of the year, whereas one below 0 indicates that the firm has done poorly.
What Does Otis Worldwide Corporation’s Profitability and Valuation Ratios Tell Us About the Stock?
With regard to the profitability of the company, the operating margin is currently at 12.80 percent and the profit margin is 7.10 percent, and the company has reported a gross margin of 29.60 percent. The profit margin, also known as the revenue ratio or gross profit ratio, is an efficiency figure used to estimate the business’s profitability by comparing net income and sales. The higher the number, the more profits are generated for the company and vice versa.
The stock’s market cap achieved a total value of $33.80 billion as of the last trading session. Market capitalization is the total value of all outstanding shares of a corporation and it is used to measure a company’s market value. The price-to-earnings ratio for Otis Worldwide Corporation (NYSE:OTIS) is 37.91. The price-to-earnings ratio is a method of assessing corporate values by comparing them to their per-share profit. Forward P/E stands at 26.85. Forward price-to-earnings is calculated using predicted earnings for the next financial year’s P/E determination. The stock has achieved an effective Price-to-Sales Ratio of 2.65 that mirrors the cost to be found for sales by the market.
Is Insider Trading a Real Thing?
Almost all investors and traders prefer to invest in shares controlled by the management of a corporation as a management company will be more likely to run the business itself and to never conduct things against the management’s desires and will always try to do what is best for their shareholders. Currently, 0.04 percent of Otis Worldwide Corporation shares are owned by insiders, and 88.30 percent are held by financial institutions. Stewart Shelley JR, the Director at Otis Worldwide Corporation (OTIS) has sold 1,971 shares of firm on Feb 08 at a price of $63.73 against the total amount of $0.13 million. In another inside trade, LaFreniere Nora E., EVP, Chief GC & Corp. Sec. of Otis Worldwide Corporation (NYSE:OTIS) sold 754 shares of the firm on Feb 05 for a total worth of $48203.0 at a price of $63.93. An inside trade which took place on Feb 05, VP, CAO & Controller of Otis Worldwide Corporation Ryan Michael Patrick sold 463 shares of firm against total price of $29600.0 at the cost of $63.93 per share.