Otter Tail Corp (NASDAQ:OTTR) VP of Human Resources, Paul L. Knutson, has sold 4,000 shares of company stock, totaling approximately $362,640. The transactions, which took place on May 24, 2024, were executed at a weighted average price of $90.66 per share. The sales occurred in a series of transactions ranging from $90.37 to $90.95 per share.
Knutson's sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. Following the sale, Knutson's direct holdings in Otter Tail Corp include a total of 20,359 shares. These holdings are composed of shares acquired through various means such as dividend reinvestment, employee stock purchase plans, and restricted stock awards.
The sale represents a significant transaction for Knutson and comes at a time when insider trading activities are closely monitored by investors seeking insights into company executives' confidence in their firms. Otter Tail Corp, with its headquarters in Fergus Falls, Minnesota, operates within the electric services industry and has seen its stock perform in alignment with market conditions and company performance.
Investors often keep an eye on insider sales as they may provide a glimpse into the executive's view of the company's future prospects. However, it's important to note that insider trading activities can be influenced by various factors and do not always necessarily reflect the executive's outlook on the company's future performance.
The specific details of the transactions, including the range of prices at which the stock was sold, can be provided upon request to the issuer, any security holder of the issuer, or the staff of the Securities and Exchange Commission, as per the footnotes in the SEC filing.
InvestingPro Insights
Amidst the insider trading activity at Otter Tail Corp (NASDAQ:OTTR), where VP of Human Resources Paul L. Knutson sold 4,000 shares, investors may find additional context in the company's current financial health and market performance. Otter Tail Corp, with a market capitalization of $3.72 billion, is trading at a P/E ratio of 12.13, reflecting a valuation that could be seen as reasonable in the current market environment. The company has a history of financial prudence, as indicated by its ability to cover interest payments with cash flows and maintain a moderate level of debt.
Looking at the company's dividend track record, Otter Tail Corp has not only raised its dividend for 10 consecutive years but has also maintained dividend payments for an impressive 54 consecutive years. This consistency underlines the company's commitment to shareholder returns and financial stability. Furthermore, the company's dividend yield stands at 2.06%, coupled with a dividend growth of 6.86% over the last twelve months as of Q1 2024, which may appeal to income-focused investors.
For those considering a deeper dive into Otter Tail Corp's financials, InvestingPro offers additional insights. There are 11 more InvestingPro Tips available, including the fact that two analysts have revised their earnings upwards for the upcoming period, and the company is trading at a high P/E ratio relative to near-term earnings growth. For investors seeking a comprehensive analysis, these tips could provide valuable guidance. To access these insights, consider using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
With the next earnings date slated for July 29, 2024, and the stock trading at 89.45% of its 52-week high, Otter Tail Corp's recent performance and solid dividend history may be of interest to those looking at the bigger picture beyond insider transactions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.