TD Cowen Initiates Coverage on Northern Trust (NASDAQ:NTRS)

Key Points

• TD Cowen initiated coverage of Northern Trust with a “hold” rating and a $175 price target, implying approximately 4.16% upside from the prior close. Analysts overall maintain a “hold” consensus with an average target of $183.93.
• Northern Trust reported strong quarterly results, posting $4.23 in EPS versus the $2.71 consensus estimate and $2.71 billion in revenue, up 35.1% year over year.
• The stock traded at $168.01, while institutional investors owned 83.19% of outstanding shares; major new positions included those from BlackRock and Primecap Management.

Equities researchers at TD Cowen initiated coverage on shares of Northern Trust (NASDAQ:NTRS - Get Free Report) in a research note issued on Thursday, MarketBeat.com reports. The brokerage set a "hold" rating and a $175.00 price target on the asset manager's stock. TD Cowen's price objective points to a potential upside of 4.16% from the stock's previous close.

Several other research firms have also recently weighed in on NTRS. JPMorgan Chase & Co. cut their target price on Northern Trust from $185.50 to $185.00 and set a "neutral" rating for the company in a research note on Friday, October 2nd. BMO Capital Markets cut their target price on Northern Trust from $208.00 to $190.00 and set an "outperform" rating for the company in a research note on Tuesday. Wells Fargo & Company upped their target price on Northern Trust from $189.00 to $194.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 23rd. Zacks Research cut Northern Trust from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 25th. Finally, UBS Group set a $186.00 target price on Northern Trust in a research note on Friday, June 26th. Three investment analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $183.93.

Northern Trust Price Performance

NASDAQ:NTRS traded down $0.17 during trading hours on Thursday, reaching $168.01. 30,587 shares of the company were exchanged, compared to its average volume of 1,077,889. The company has a market capitalization of $30.74 billion, a P/E ratio of 14.43, a P/E/G ratio of 0.96 and a beta of 1.24. Northern Trust has a 1-year low of $121.12 and a 1-year high of $195.78. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.65 and a quick ratio of 0.65. The business has a 50 day moving average of $181.87 and a 200 day moving average of $171.71.

Northern Trust (NASDAQ:NTRS - Get Free Report) last issued its quarterly earnings results on Wednesday, July 22nd. The asset manager reported $4.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.71 by $1.52. Northern Trust had a return on equity of 16.91% and a net margin of 14.76%.The business had revenue of $2.71 billion for the quarter, compared to the consensus estimate of $2.69 billion. During the same quarter in the prior year, the business posted $2.13 earnings per share. The firm's quarterly revenue was up 35.1% compared to the same quarter last year. Research analysts forecast that Northern Trust will post 11.64 EPS for the current year.

Insiders Place Their Bets

In other news, EVP Thomas A. South sold 1,800 shares of the stock in a transaction on Monday, August 24th. The stock was sold at an average price of $184.90, for a total value of $332,820.00. Following the completion of the transaction, the executive vice president directly owned 92,917 shares in the company, valued at approximately $17,180,353.30. This represents a 1.90% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Robert Moritz, Jr. purchased 255 shares of the company's stock in a transaction dated Wednesday, July 29th. The stock was purchased at an average price of $179.57 per share, with a total value of $45,790.35. Following the completion of the purchase, the director directly owned 8,400 shares in the company, valued at $1,508,388. The trade was a 3.13% increase in their position. The SEC filing for this purchase provides additional information. 0.66% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in Northern Trust during the 2nd quarter worth about $2,523,781,000. Primecap Management Co. CA acquired a new stake in Northern Trust during the 2nd quarter worth about $1,060,553,000. Dimensional Fund Advisors LP grew its holdings in Northern Trust by 1.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,455,996 shares of the asset manager's stock worth $342,744,000 after acquiring an additional 36,322 shares during the period. Bank of New York Mellon Corp acquired a new stake in Northern Trust during the 2nd quarter worth about $361,079,000. Finally, Legal & General Group Plc acquired a new stake in Northern Trust during the 2nd quarter worth about $207,054,000. 83.19% of the stock is owned by institutional investors.

Northern Trust Company Profile

Northern Trust Corporation is a financial services company headquartered in Chicago, Illinois. Founded in 1889, the company provides wealth management, asset servicing, asset management and banking services to corporations, institutions, affluent individuals and families, and financial professionals.

Through its wealth management business, Northern Trust offers investment management, financial planning, trust and estate services, private banking, and family office solutions. Its asset servicing and banking operations support institutional investors and businesses with custody, fund administration, securities lending, foreign exchange, treasury services, capital markets, and related banking solutions.

Northern Trust serves clients through operations in the United States and international markets, including Canada, Europe, the Middle East and the Asia-Pacific region.