Canoe Financial Loads Adds $85 Million of Otis (NYSE: OTIS) Shares: Should Investors Buy Too?
Key Points
Canoe Financial added 940,862 Otis Worldwide shares, an estimated $85.41 million trade based on average pricing for Q3 2025.
The transaction value equals 1.22% of the fund’s 13F reportable assets under management.
Canoe's post-trade position: 2,411,956 shares valued at $220.53 million as of 2025-09-30.
The stake now represents 3.1% of AUM, placing it outside the fund’s top five holdings.
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Canoe Financial LP disclosed a significant purchase of Otis Worldwide Corporation shares in its October 15, 2025 filing, acquiring 940,862 shares in a transaction estimated at $85.41 million based on the average share price for the quarter ended September 30, 2025.
What happened
According to a filing with the Securities and Exchange Commission dated October 15, 2025, Canoe Financial increased its position in Otis Worldwide Corporation (NYSE:OTIS) by 940,862 shares during the quarter.
The purchase, estimated at $85.41 million based on the period’s average share price, brought the fund’s total holdings to 2,411,956 shares, with an end-of-quarter value of $220.53 million.
What else to know
This buy increased Canoe Financial's stake in Otis Worldwide to 3.1% of its 13F assets under management as of September 30, 2025
Top holdings after the filing:
- Taiwan Semiconductor Manufacturing: $375.41 million (5.1% of AUM) as of 2025-09-30
- Phillip Morris International: $329.46 million (4.5% of AUM) as of 2025-09-30
- Alphabet: $285.96 million (3.9% of AUM) as of 2025-09-30
- Microsoft: $281.96 million (3.9% of AUM) as of 2025-09-30
- EQT: $265.64 million (3.6% of AUM) as of 2025-09-30
As of October 15, 2025, shares were priced at $91.47, down 12.45% over the past year and underperforming the S&P 500 by 25.5 percentage points.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $14.17 billion |
| Net Income (TTM) | $1.51 billion |
| Dividend Yield | 1.77% |
| Price (as of market close 2025-10-15) | $91.47 |
Company Snapshot
Otis manufactures, installs, and services elevators, escalators, and moving walkways. It generates revenue from equipment sales, installations, and ongoing service contracts.
The company operates a dual-segment model: New Equipment (design, manufacturing, installation) and Service (maintenance, repair, and modernization).
It serves commercial and residential property owners, developers, and infrastructure projects globally, with a strong presence in the United States, China, and international markets.
Otis Worldwide manufactures, installs, and services elevators and escalators in the United States, China, and internationally, with a broad installed base and a focus on both new equipment and aftermarket service.
The company has an extensive service network and long-standing customer relationships. Otis's scale and global reach position it as a key player in the industrial machinery sector.
Foolish take
Canoe Financial grew its portfolio allocation in Otis from 1.7% in early 2024 to 3.2% following this quarter's purchase.
It looks like Canoe capitalized on the stock's 10% dip in the last three months and has now made Otis its seventh-largest holding.
From a Foolish perspective, this looks like a solid investment. While Otis isn't outrageously cheap at 24 times earnings (considering sales have only inched 2% higher annually over the last five years), it is the market share leader in the elevator niche.
Furthermore, it generates roughly two-thirds of its sales from maintenance, repair, and modernization services that are oftentimes mandatory and recurring. This makes Otis an incredibly steady operator, which is what Canoe seems to focus on with its holdings.
This stability paired with dividend payments that have more than doubled since 2020, makes Otis an excellent "buy-and-hold forever" type of holding for investors seeking passive income growth.
Glossary
13F reportable assets: Securities that institutional investment managers must disclose quarterly to the SEC under Form 13F.
Assets under management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
Stake: The proportion of ownership or investment a fund or investor holds in a company.
Quarter ended: The final date of a company or fund’s three-month financial reporting period.
Filing: An official document submitted to a regulatory authority, often disclosing financial or investment information.
Dual-segment model: A business structure with two main operating divisions, each generating revenue in distinct ways.
Aftermarket service: Ongoing maintenance, repair, or support provided after the initial sale and installation of equipment.
Installed base: The total number of a company’s products currently in use by customers.
Modernization: Upgrading or updating existing equipment to improve performance or extend its useful life.
Service contracts: Agreements for ongoing maintenance or support services, typically generating recurring revenue.
TTM: The 12-month period ending with the most recent quarterly report.
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Josh Kohn-Lindquist has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, EQT, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Otis Worldwide and Philip Morris International and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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