Zacks Investment Research upgraded shares of Northern Trust (NASDAQ:NTRS) from a hold rating to a buy rating in a report published on Tuesday morning. Zacks Investment Research currently has $110.00 price target on the asset manager’s stock.
According to Zacks, “Shares of Northern Trust have underperformed the industry year to date. The company has a decent earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in two of the trailing four quarters. Northern Trust continues to benefit from its strong wealth management operations with diversified products. Also, following the recent Fed interest rate hike, the company raised its prime lending rate to 4.50% from 4.25% which will further ease margin pressure and support its top line. However, despite undertaking cost-savings measures, mounting expenses continue to hurt the company's financials. Moreover, an unstable economic environment is a headwind. Nevertheless, Northern Trust continues to enhance shareholders' value through steady capital deployment activities, reflecting its strong capital position.”
A number of other research firms have also issued reports on NTRS. UBS raised Northern Trust from a neutral rating to a buy rating and lifted their target price for the stock from $92.00 to $100.00 in a report on Friday, September 8th. Bank of America set a $102.00 target price on Northern Trust and gave the stock a buy rating in a report on Thursday, October 19th. Citigroup reaffirmed a neutral rating and set a $92.00 target price (up from $90.00) on shares of Northern Trust in a report on Monday, October 9th. Morgan Stanley increased their price target on Northern Trust from $83.00 to $91.00 and gave the company an underweight rating in a research report on Thursday, October 19th. Finally, Buckingham Research increased their price target on Northern Trust from $95.00 to $97.00 and gave the company a neutral rating in a research report on Thursday, October 19th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. The company currently has an average rating of Hold and a consensus target price of $98.93.
Northern Trust (NASDAQ:NTRS) last issued its quarterly earnings results on Wednesday, October 18th. The asset manager reported $1.20 EPS for the quarter, beating analysts’ consensus estimates of $1.12 by $0.08. The company had revenue of $1.36 billion for the quarter, compared to analyst estimates of $1.35 billion. Northern Trust had a return on equity of 12.33% and a net margin of 20.27%. The company’s quarterly revenue was up 11.2% compared to the same quarter last year. During the same period last year, the company earned $1.11 earnings per share. research analysts expect that Northern Trust will post 4.68 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, January 1st. Stockholders of record on Friday, December 1st will be issued a dividend of $0.42 per share. The ex-dividend date is Thursday, November 30th. This represents a $1.68 annualized dividend and a dividend yield of 1.70%. Northern Trust’s dividend payout ratio is 37.09%.
In other news, EVP Aileen B. Blake sold 1,000 shares of Northern Trust stock in a transaction dated Friday, October 6th. The stock was sold at an average price of $94.00, for a total transaction of $94,000.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Clair Joyce St sold 7,665 shares of Northern Trust stock in a transaction dated Wednesday, October 18th. The shares were sold at an average price of $95.00, for a total value of $728,175.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 433,382 shares of company stock valued at $41,304,013. 1.27% of the stock is owned by corporate insiders.
Institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. raised its stake in shares of Northern Trust by 2.6% in the 2nd quarter. Vanguard Group Inc. now owns 14,255,623 shares of the asset manager’s stock valued at $1,385,789,000 after acquiring an additional 363,691 shares in the last quarter. BlackRock Inc. increased its position in Northern Trust by 0.3% in the 2nd quarter. BlackRock Inc. now owns 13,318,550 shares of the asset manager’s stock worth $1,294,697,000 after buying an additional 38,780 shares during the period. Northern Trust Corp increased its position in Northern Trust by 1.5% in the 2nd quarter. Northern Trust Corp now owns 12,414,424 shares of the asset manager’s stock worth $1,206,806,000 after buying an additional 184,112 shares during the period. JPMorgan Chase & Co. increased its position in Northern Trust by 0.5% in the 3rd quarter. JPMorgan Chase & Co. now owns 8,262,483 shares of the asset manager’s stock worth $759,569,000 after buying an additional 41,048 shares during the period. Finally, Burgundy Asset Management Ltd. increased its position in Northern Trust by 0.6% in the 3rd quarter. Burgundy Asset Management Ltd. now owns 2,386,800 shares of the asset manager’s stock worth $219,419,000 after buying an additional 13,249 shares during the period. Institutional investors and hedge funds own 81.69% of the company’s stock.
About Northern Trust
Northern Trust Corporation is a financial holding company. The Company provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals across the world. Its segments include Corporate & Institutional Services (C&IS), Wealth Management, and Treasury and Other.
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