Bank of Nova Scotia Buys New Stake in Northern Trust Corporation $NTRS

Key Points

• Bank of Nova Scotia acquired 38,898 shares of Northern Trust in the second quarter, valued at approximately $6.76 million. Institutional investors and hedge funds collectively own 83.19% of the company.
• Northern Trust reported strong quarterly results, with earnings of $4.23 per share and revenue of $2.71 billion, representing 35.1% year-over-year revenue growth and exceeding analyst expectations.
• The company raised its quarterly dividend from $0.80 to $0.88 per share, equivalent to an annualized dividend of $3.52 and a 1.9% yield. Despite mixed analyst opinions, the stock carries a consensus “Hold” rating with an average price target of $180.68.

Bank of Nova Scotia acquired a new stake in Northern Trust Corporation (NASDAQ:NTRS - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 38,898 shares of the asset manager's stock, valued at approximately $6,762,000.

Several other hedge funds have also recently bought and sold shares of NTRS. Concurrent Investment Advisors LLC purchased a new position in Northern Trust in the fourth quarter worth approximately $1,959,000. Goldman Sachs Group Inc. increased its position in shares of Northern Trust by 5.9% in the 4th quarter. Goldman Sachs Group Inc. now owns 2,894,755 shares of the asset manager's stock valued at $395,395,000 after purchasing an additional 161,826 shares during the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of Northern Trust by 1,838.1% in the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 180,034 shares of the asset manager's stock valued at $22,793,000 after purchasing an additional 170,745 shares during the last quarter. PFA Pension Forsikringsaktieselskab acquired a new stake in shares of Northern Trust in the 4th quarter valued at $67,126,000. Finally, Strs Ohio raised its holdings in shares of Northern Trust by 83.0% in the 4th quarter. Strs Ohio now owns 136,403 shares of the asset manager's stock valued at $18,631,000 after purchasing an additional 61,858 shares in the last quarter. Institutional investors and hedge funds own 83.19% of the company's stock.

Northern Trust Stock Up 0.1%

Shares of Northern Trust stock opened at $186.82 on Wednesday. The company has a market cap of $34.18 billion, a P/E ratio of 16.04, a PEG ratio of 1.05 and a beta of 1.25. The company has a debt-to-equity ratio of 0.43, a quick ratio of 0.65 and a current ratio of 0.65. Northern Trust Corporation has a one year low of $121.12 and a one year high of $195.78. The firm has a fifty day moving average of $182.03 and a two-hundred day moving average of $163.87.

Northern Trust (NASDAQ:NTRS - Get Free Report) last announced its quarterly earnings data on Wednesday, July 22nd. The asset manager reported $4.23 EPS for the quarter, beating analysts' consensus estimates of $2.71 by $1.52. Northern Trust had a net margin of 14.76% and a return on equity of 16.91%. The firm had revenue of $2.71 billion during the quarter, compared to the consensus estimate of $2.69 billion. During the same quarter last year, the firm earned $2.13 earnings per share. The firm's revenue was up 35.1% compared to the same quarter last year. On average, analysts forecast that Northern Trust Corporation will post 11.59 earnings per share for the current year.

Northern Trust Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Friday, September 4th will be issued a $0.88 dividend. The ex-dividend date of this dividend is Friday, September 4th. This represents a $3.52 annualized dividend and a dividend yield of 1.9%. This is an increase from Northern Trust's previous quarterly dividend of $0.80. Northern Trust's payout ratio is 27.47%.

Insider Activity at Northern Trust

In related news, Director Robert Edward Jr. Moritz purchased 255 shares of the stock in a transaction dated Wednesday, July 29th. The shares were acquired at an average cost of $179.57 per share, with a total value of $45,790.35. Following the purchase, the director directly owned 8,400 shares in the company, valued at $1,508,388. This trade represents a 3.13% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Thomas A. South sold 1,800 shares of the business'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 sale, 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 SEC filing for this sale provides additional information. 0.66% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

NTRS has been the topic of several recent analyst reports. Morgan Stanley increased their price target on shares of Northern Trust from $170.00 to $173.00 and gave the company an "underweight" rating in a research note on Thursday, July 23rd. Royal Bank Of Canada downgraded shares of Northern Trust from an "outperform" rating to a "sector perform" rating and set a $178.00 price objective for the company. in a research report on Wednesday, July 22nd. Weiss Ratings restated a "buy (b)" rating on shares of Northern Trust in a report on Friday, July 31st. Bank of America increased their target price on shares of Northern Trust from $190.00 to $200.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Northern Trust from $179.50 to $185.50 and gave the stock a "neutral" rating in a research note on Tuesday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, Northern Trust currently has an average rating of "Hold" and an average price target of $180.68.

About Northern Trust

Northern Trust Corporation NASDAQ: NTRS is a global financial services firm headquartered in Chicago that provides asset servicing, asset management and wealth management solutions to institutions, corporations and high-net-worth individuals. The company's core businesses include custody and fund administration, investment operations outsourcing, trust and fiduciary services, private banking, and retirement and defined contribution plan services.

Northern Trust's product and service offerings span custody and fund accounting, portfolio and performance analytics, securities lending, cash management and foreign exchange, as well as discretionary and non-discretionary investment management.

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