Fundsmith 13F: Cuts Otis Worldwide (OTIS) Stake by $27M

Fundsmith Trims Otis Stake

Fundsmith, the London-based investment firm known for its highly concentrated, long-term approach, trimmed its stake in elevator manufacturer Otis Worldwide Corporation (NYSE:OTIS). According to the fund's latest Form 13F filing with the SEC for the period ending March 31, 2026, Fundsmith cut its position in Otis by 12.2%.

This move aligns with a broader pattern of portfolio adjustments by the fund, which has recently exited or heavily reduced several other mid-cap and industrial holdings. Because 13F filings are backward-looking, they reflect holdings as of the end of the quarter and may not represent the firm's current day-to-day trading.

The Numbers Behind the Trade

During the quarter, Fundsmith sold 380,745 shares of Otis Worldwide. This reduction brought its total holding down to 2,731,635 shares, down from 3,112,380 shares previously. Based on the cost basis of $72.93, the remaining position was valued at $193.26 million at the close of the reporting period.

Otis Stock Performance

Shares of Otis closed at $70.75 on Saturday, trading just below the fund's reported cost basis of $72.93. The stock has been trading near its 50-day moving average of $71.60 and below its 200-day moving average of $79.04. Over the past year, Otis has traded between a low of $66.57 and a high of $94.56. At current levels, the stock trades at a price-to-earnings ratio of 17.1, with a forward P/E of 14.7, suggesting investors are paying a reasonable premium for the company's steady service revenue.

Recent Earnings

In its most recent financial reports, Otis Worldwide posted annual revenue of $14.91 billion, representing modest revenue growth of 7.3%. The company generated diluted earnings per share of $3.89, supported by a healthy net margin of 10.2%. Investors looking forward to the next financial update can mark October 28, 2026, when Otis is scheduled to release its next quarterly earnings report.

Dividend

Otis continues to reward shareholders with a steady stream of income. The company pays an annual dividend rate of $1.76 per share, which translates to a dividend yield of 2.57% at current prices. This payout is supported by a conservative dividend payout ratio of 43.7%, leaving the company with ample capital to reinvest in its service operations and modernization projects.

Analysts Set New Price Targets

Wall Street analysts remain generally constructive on Otis Worldwide, though opinions are somewhat split. On September 25, 2026, Wells Fargo initiated coverage on the stock with an Underweight rating and a $77.00 price target. Earlier, on July 23, 2026, both Bernstein and Evercore ISI Group maintained Outperform ratings, adjusting their price targets to $90.00 and $95.00, respectively. Across 12 analyst opinions, the consensus recommendation remains a buy, with an average price target of $88.25.

About Otis Worldwide

Otis Worldwide is the world's leading manufacturer and servicer of elevators, escalators, and moving walkways. The Farmington, Connecticut-based firm operates in two core areas: selling new equipment to developers and providing ongoing maintenance, repair, and modernization services. This high-margin service segment provides the company with highly predictable, recurring cash flows, making it a classic candidate for quality-focused investors like Fundsmith.

What to Watch

Market observers will want to watch whether Fundsmith continues to chip away at its Otis position in the next filing cycle or if it chooses to hold this core industrial stake steady. Investors should also keep an eye on the upcoming October 28 earnings call to see if the company's service segment can offset slower new equipment sales in international real estate markets.