Primecap Management Co. CA Takes Position in Northern Trust Corporation $NTRS

Key Points

• Primecap Management purchased 6.1 million Northern Trust shares worth approximately $1.06 billion, representing about 3.33% of the company. Other major investors also established positions, and institutional investors now own 83.19% of the stock.
• Northern Trust reported strong quarterly results, with earnings of $4.23 per share—well above the $2.71 consensus estimate—and revenue up 35.1% year over year to $2.71 billion.
• The company raised its quarterly dividend from $0.80 to $0.88 per share, implying an annualized dividend of $3.52 and a 1.9% yield. Analysts maintain a consensus “Hold” rating with an average price target of $180.68.

Primecap Management Co. CA purchased a new stake in Northern Trust Corporation (NASDAQ:NTRS - Free Report) in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund purchased 6,100,742 shares of the asset manager's stock, valued at approximately $1,060,553,000. Primecap Management Co. CA owned approximately 3.33% of Northern Trust as of its most recent SEC filing.

A number of other large investors also recently bought and sold shares of the business. BlackRock Inc. purchased a new position in Northern Trust during the second quarter valued at $2,523,781,000. Bank of New York Mellon Corp purchased a new stake in shares of Northern Trust during the second quarter worth about $361,079,000. Norges Bank purchased a new stake in shares of Northern Trust during the fourth quarter worth about $257,410,000. Legal & General Group Plc acquired a new position in shares of Northern Trust during the 2nd quarter worth about $207,054,000. Finally, Eurizon Capital SGR S.p.A. acquired a new position in shares of Northern Trust during the 4th quarter worth about $126,794,000. Institutional investors and hedge funds own 83.19% of the company's stock.

Insider Buying and Selling at Northern Trust

In related news, EVP Thomas A. South sold 1,800 shares of the business's stock in a transaction on 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 transaction, the executive vice president directly owned 92,917 shares of the company's stock, valued at $17,180,353.30. The trade was a 1.90% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Robert Edward Jr. Moritz purchased 255 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were bought at an average price of $179.57 per share, for a total transaction of $45,790.35. Following the acquisition, the director owned 8,400 shares in the company, valued at $1,508,388. This trade represents a 3.13% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.66% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

NTRS has been the topic of several research analyst reports. Truist Financial lifted their price objective on Northern Trust from $176.00 to $186.00 and gave the stock a "hold" rating in a report on Friday, June 26th. Evercore set a $179.00 target price on Northern Trust in a report on Monday, July 6th. UBS Group set a $186.00 price target on Northern Trust in a research report on Friday, June 26th. Wells Fargo & Company raised their price objective on Northern Trust from $189.00 to $194.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. Finally, Keefe, Bruyette & Woods upped their target price on shares of Northern Trust from $157.00 to $175.00 and gave the stock an "underperform" rating in a report on Thursday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eight have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, Northern Trust has a consensus rating of "Hold" and an average price target of $180.68.

Northern Trust Trading Up 0.1%

NASDAQ NTRS opened at $186.82 on Wednesday. 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 stock has a market capitalization of $34.18 billion, a P/E ratio of 16.04, a PEG ratio of 1.05 and a beta of 1.25. The firm's 50-day moving average is $182.03 and its two-hundred day moving average is $163.87. Northern Trust Corporation has a 12 month low of $121.12 and a 12 month high of $195.78.

Northern Trust (NASDAQ:NTRS - Get Free Report) last announced its earnings results 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 return on equity of 16.91% and a net margin of 14.76%.The company had revenue of $2.71 billion during the quarter, compared to analysts' expectations of $2.69 billion. During the same period last year, the business posted $2.13 EPS. Northern Trust's revenue for the quarter was up 35.1% on a year-over-year basis. On average, sell-side analysts anticipate that Northern Trust Corporation will post 11.59 earnings per share for the current year.

Northern Trust Increases Dividend

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

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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