Validea Benjamin Graham Strategy Daily Upgrade Report - 5/7/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 07 2025
0mins
Should l Buy OTTR?
Source: NASDAQ.COM
Validea's Value Investor Model: The model based on Benjamin Graham's strategy has upgraded Otter Tail Corp (OTTR) from a 71% to an 86% rating, indicating strong interest due to its low P/B and P/E ratios, low debt, and solid long-term earnings growth.
Company Overview: Otter Tail Corporation operates in the Electric Utilities industry with diversified operations across electric utility, manufacturing, and plastic pipe businesses, serving regions in Minnesota, North Dakota, and South Dakota.
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Analyst Views on OTTR
About OTTR
Otter Tail Corporation is a holding company which invests in a portfolio of diversified operations, including an electric utility and manufacturing and plastic pipe businesses. The Company operates through three segments: Electric, Manufacturing and Plastics. The Electric segment includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by the Company. The Manufacturing segment consists of businesses in manufacturing activities, including contract machining, metal parts stamping, fabrication and painting, and production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components. These businesses have manufacturing facilities in Georgia, Illinois and Minnesota. The Plastics segment consists of businesses producing PVC pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the western half of the United States and Canada.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Major Earnings Reports Expected on Monday
- Earnings Reports: Major earnings reports expected on Monday include Armada Hoffler Properties (AHH), Sonoco Products Company (SON), and Otter Tail Corporation (OTTR), all of which hold significant positions in their respective industries, prompting investors to closely monitor their performance to gauge market trends.
- Market Reaction: Investors are particularly eager for Armada Hoffler Properties' earnings, as its performance in the real estate market could influence the stock's trajectory, especially in the current economic climate.
- Industry Impact: Sonoco Products Company's earnings will provide crucial data for the packaging industry, with analysts focusing on its revenue and profit margins to assess the strength of the industry's recovery.
- Investor Focus: Otter Tail Corporation's earnings will reveal its performance in the energy sector, with investors evaluating its strategic positioning in the renewable energy transition and future growth potential.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Otter Tail Corporation to Announce 2025 Financial Results and Host Conference Call
- Earnings Release Schedule: Otter Tail Corporation will announce its 2025 financial results after market close on February 16, 2026, highlighting its diversified operations in electric utility and manufacturing sectors.
- Conference Call Timing: The company will host a conference call on February 17, 2026, at 10:00 a.m. CT to discuss its financial and operational performance, aiming to bolster investor confidence in its future prospects.
- Webcast Access: Participants can access the live webcast via the company's website, ensuring they download any necessary software prior to the call, reflecting the company's commitment to effective investor communication.
- Investor Information Availability: Otter Tail Corporation offers multiple channels for obtaining the latest investor and corporate information, further enhancing transparency and investor relations.
See More
Electric Utilities Face High Short Interest, Otter Tail at 11.91%
- High Short Interest: Within the utilities sector, Otter Tail (OTTR) and Hawaiian Electric Industries (HE) have the highest short interest at 11.91% and 11.29%, respectively, indicating a significant bearish sentiment among investors towards these stocks.
- Divergent Analyst Ratings: While Seeking Alpha rates Otter Tail as a Hold, Wall Street analysts are bullish, giving it a Buy rating, highlighting a split in market sentiment regarding the stock's future performance.
- Most Shorted Stocks: Among utilities stocks with a market cap over $2B, Otter Tail and Hawaiian Electric Industries rank as the most shorted, whereas Brookfield Infrastructure Partners (BIP) and NextEra Energy (NEE) are the least shorted at 0.21% and 1.55%, respectively, indicating varying investor confidence across the sector.
- Market Trend Insights: With NextEra Energy gaining for seven consecutive sessions, there is strong market interest in large-cap utility stocks' earnings momentum, potentially signaling future investment opportunities.
See More
Jefferies Declares $0.40 Quarterly Cash Dividend Per Share
- Jefferies Dividend Announcement: Jefferies' Board of Directors declared a quarterly cash dividend of $0.40 per share, payable on February 27, 2026, to shareholders of record as of February 17, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Enterprise Products Distribution Growth: Enterprise Products Partners announced a quarterly cash distribution of $0.55 per unit for Q4 2025, or $2.20 annualized, representing a 2.8% increase over Q4 2024, indicating the company's positive performance in maintaining cash flow and shareholder returns.
- AZZ Cash Dividend: AZZ's Board of Directors authorized a cash dividend of $0.20 per share for Q3, payable on February 26, 2026, to shareholders of record as of February 5, 2026, demonstrating the company's efforts in sustaining profitability and creating shareholder value.
- TD SYNNEX Dividend Declaration: TD SYNNEX's Board of Directors declared a quarterly cash dividend of $0.48 per share, payable on January 30, 2026, to stockholders of record as of January 16, 2026, showcasing the company's determination in maintaining financial performance and rewarding shareholders.
See More
Otter Tail Corporation Raises Quarterly Dividend to $0.5775 per Share
- Dividend Increase: Otter Tail Corporation announced an increase in its quarterly common stock dividend to $0.5775 per share, raising the annual indicated dividend rate to $2.31, which represents a $0.21 or 10% increase over the 2025 rate, reflecting the company's ongoing financial strength.
- Commitment to Shareholders: President and CEO Chuck MacFarlane highlighted that this marks the second consecutive year of double-digit dividend growth, underscoring the company's dedication to delivering shareholder value and enhancing investor confidence.
- Historical Achievement: The year 2026 will mark the 88th consecutive year of dividend payments on common stock, showcasing a stable dividend payment history that attracts long-term investors.
- Payment Schedule: The first-quarter dividend is set to be paid on March 10, 2026, to shareholders of record on February 13, 2026, ensuring timely returns for shareholders and further solidifying the relationship between the company and its investors.
See More
Major Earnings Reports Expected on Monday
- Earnings Reports: Major earnings reports expected on Monday include Armada Hoffler Properties (AHH), Sonoco Products Company (SON), and Otter Tail Corporation (OTTR), all of which hold significant positions in their respective industries, prompting investors to closely monitor their performance to gauge market trends.
- Market Reaction: Investors are particularly eager for Armada Hoffler Properties' earnings, as its performance in the real estate market could influence the stock's trajectory, especially in the current economic climate.
- Industry Impact: Sonoco Products Company's earnings will provide crucial data for the packaging industry, with analysts focusing on its revenue and profit margins to assess the strength of the industry's recovery.
- Investor Focus: Otter Tail Corporation's earnings will reveal its performance in the energy sector, with investors evaluating its strategic positioning in the renewable energy transition and future growth potential.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Otter Tail Corporation to Announce 2025 Financial Results and Host Conference Call
- Earnings Release Schedule: Otter Tail Corporation will announce its 2025 financial results after market close on February 16, 2026, highlighting its diversified operations in electric utility and manufacturing sectors.
- Conference Call Timing: The company will host a conference call on February 17, 2026, at 10:00 a.m. CT to discuss its financial and operational performance, aiming to bolster investor confidence in its future prospects.
- Webcast Access: Participants can access the live webcast via the company's website, ensuring they download any necessary software prior to the call, reflecting the company's commitment to effective investor communication.
- Investor Information Availability: Otter Tail Corporation offers multiple channels for obtaining the latest investor and corporate information, further enhancing transparency and investor relations.
See More
Electric Utilities Face High Short Interest, Otter Tail at 11.91%
- High Short Interest: Within the utilities sector, Otter Tail (OTTR) and Hawaiian Electric Industries (HE) have the highest short interest at 11.91% and 11.29%, respectively, indicating a significant bearish sentiment among investors towards these stocks.
- Divergent Analyst Ratings: While Seeking Alpha rates Otter Tail as a Hold, Wall Street analysts are bullish, giving it a Buy rating, highlighting a split in market sentiment regarding the stock's future performance.
- Most Shorted Stocks: Among utilities stocks with a market cap over $2B, Otter Tail and Hawaiian Electric Industries rank as the most shorted, whereas Brookfield Infrastructure Partners (BIP) and NextEra Energy (NEE) are the least shorted at 0.21% and 1.55%, respectively, indicating varying investor confidence across the sector.
- Market Trend Insights: With NextEra Energy gaining for seven consecutive sessions, there is strong market interest in large-cap utility stocks' earnings momentum, potentially signaling future investment opportunities.
See More
Jefferies Declares $0.40 Quarterly Cash Dividend Per Share
- Jefferies Dividend Announcement: Jefferies' Board of Directors declared a quarterly cash dividend of $0.40 per share, payable on February 27, 2026, to shareholders of record as of February 17, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Enterprise Products Distribution Growth: Enterprise Products Partners announced a quarterly cash distribution of $0.55 per unit for Q4 2025, or $2.20 annualized, representing a 2.8% increase over Q4 2024, indicating the company's positive performance in maintaining cash flow and shareholder returns.
- AZZ Cash Dividend: AZZ's Board of Directors authorized a cash dividend of $0.20 per share for Q3, payable on February 26, 2026, to shareholders of record as of February 5, 2026, demonstrating the company's efforts in sustaining profitability and creating shareholder value.
- TD SYNNEX Dividend Declaration: TD SYNNEX's Board of Directors declared a quarterly cash dividend of $0.48 per share, payable on January 30, 2026, to stockholders of record as of January 16, 2026, showcasing the company's determination in maintaining financial performance and rewarding shareholders.
See More
Otter Tail Corporation Raises Quarterly Dividend to $0.5775 per Share
- Dividend Increase: Otter Tail Corporation announced an increase in its quarterly common stock dividend to $0.5775 per share, raising the annual indicated dividend rate to $2.31, which represents a $0.21 or 10% increase over the 2025 rate, reflecting the company's ongoing financial strength.
- Commitment to Shareholders: President and CEO Chuck MacFarlane highlighted that this marks the second consecutive year of double-digit dividend growth, underscoring the company's dedication to delivering shareholder value and enhancing investor confidence.
- Historical Achievement: The year 2026 will mark the 88th consecutive year of dividend payments on common stock, showcasing a stable dividend payment history that attracts long-term investors.
- Payment Schedule: The first-quarter dividend is set to be paid on March 10, 2026, to shareholders of record on February 13, 2026, ensuring timely returns for shareholders and further solidifying the relationship between the company and its investors.
See More
