Bank of America Corp DE Buys Shares of 688,472 Northern Trust Corporation $NTRS

Key Points

• Bank of America acquired 688,472 Northern Trust shares worth approximately $119.7 million, taking a 0.38% stake. Other major institutions, including BlackRock and Primecap Management, also established or increased positions, while institutional investors collectively own 83.19% of NTRS.
• Northern Trust reported strong quarterly results, with $4.23 in earnings per share versus the $2.71 consensus estimate and revenue rising 35.1% year over year to $2.71 billion.
• The company raised its quarterly dividend from $0.80 to $0.88 per share, implying a $3.52 annual payout and a 2.0% yield. Analysts collectively rate the stock “Hold,” with an average price target of $180.68.

Bank of America Corp DE acquired a new position in shares of Northern Trust Corporation (NASDAQ:NTRS - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 688,472 shares of the asset manager's stock, valued at approximately $119,684,000. Bank of America Corp DE owned 0.38% of Northern Trust at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Northern Trust in the 2nd quarter worth approximately $2,523,781,000. Primecap Management Co. CA bought a new position in Northern Trust in the second quarter worth $1,060,553,000. Goldman Sachs Group Inc. boosted its stake in Northern Trust by 5.9% during the fourth quarter. Goldman Sachs Group Inc. now owns 2,894,755 shares of the asset manager's stock worth $395,395,000 after buying an additional 161,826 shares in the last quarter. Bank of New York Mellon Corp bought a new stake in Northern Trust in the 2nd quarter valued at $361,079,000. Finally, Dimensional Fund Advisors LP increased its holdings in Northern Trust by 1.5% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,455,996 shares of the asset manager's stock valued at $342,744,000 after buying an additional 36,322 shares during the period. Institutional investors and hedge funds own 83.19% of the company's stock.

Northern Trust Stock Up 0.5%

NTRS opened at $177.89 on Friday. The firm has a market capitalization of $32.55 billion, a P/E ratio of 15.27, a price-to-earnings-growth ratio of 1.00 and a beta of 1.24. Northern Trust Corporation has a one year low of $121.12 and a one year high of $195.78. The company has a fifty day moving average price of $184.64 and a 200-day moving average price of $168.47. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.65 and a quick ratio of 0.65.

Northern Trust (NASDAQ:NTRS - Get Free Report) last posted its earnings results on Wednesday, July 22nd. The asset manager reported $4.23 EPS for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $2.69 billion. During the same period in the previous year, the business earned $2.13 earnings per share. The firm's revenue was up 35.1% on a year-over-year basis. Equities research analysts expect that Northern Trust Corporation will post 11.59 earnings per share for the current fiscal year.

Northern Trust Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 4th will be paid a dividend of $0.88 per share. This represents a $3.52 annualized dividend and a dividend yield of 2.0%. This is a positive change from Northern Trust's previous quarterly dividend of $0.80. The ex-dividend date of this dividend is Friday, September 4th. Northern Trust's payout ratio is currently 30.21%.

Insider Transactions at Northern Trust

In other Northern Trust news, Director Robert Moritz, Jr. bought 255 shares of the business's stock in a transaction that occurred on Wednesday, July 29th. The shares were bought at an average cost 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 of the company's stock, valued at $1,508,388. This trade represents a 3.13% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP Thomas A. South sold 1,800 shares of the company's stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $184.90, for a total transaction of $332,820.00. Following the completion of the sale, the executive vice president directly owned 92,917 shares in the company, valued at $17,180,353.30. This represents a 1.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.66% of the company's stock.

Analyst Ratings Changes

NTRS has been the topic of a number of recent analyst reports. Morgan Stanley boosted their price target on shares of Northern Trust from $170.00 to $173.00 and gave the company an "underweight" rating in a research report on Thursday, July 23rd. Royal Bank Of Canada lowered Northern Trust from an "outperform" rating to a "sector perform" rating and set a $178.00 target price on the stock. in a research note on Wednesday, July 22nd. Citigroup raised their price target on Northern Trust from $162.00 to $172.00 and gave the stock a "neutral" rating in a research report on Tuesday, June 30th. UBS Group set a $186.00 target price on shares of Northern Trust in a report on Friday, June 26th. Finally, Barclays increased their price objective on Northern Trust from $176.00 to $189.00 and gave the stock an "equal weight" rating in a report on Thursday, July 23rd. Four analysts have rated the stock with a Buy rating, nine have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $180.68.

About Northern Trust

Northern Trust Corporation is a financial services company headquartered in Chicago, Illinois, and the holding company for Northern Trust Company and related businesses. Founded in 1889, the company provides banking, investment management and fiduciary services to corporations, institutions, high-net-worth individuals, families and privately held businesses.

Northern Trust's institutional offerings include asset custody and servicing, fund administration, securities lending, foreign exchange, treasury services, capital markets support and related solutions.

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