Northern Trust Corporation (NASDAQ:NTRS) Receives Consensus Rating of "Reduce" from Brokerages

Key Points

• Northern Trust Corporation has received an average analyst recommendation of "Reduce", with three analysts giving it a sell rating and only two providing buy ratings.
• The company recently announced a quarterly dividend increase to $0.80 per share, which reflects a 2.5% dividend yield and a payout ratio of 35.25%.
• Despite reporting a 26.4% decline in year-over-year revenue, Northern Trust's recent quarterly earnings topped estimates, revealing an EPS of $2.13 against expectations of $2.08.

Northern Trust Corporation (NASDAQ:NTRS - Get Free Report) has received an average rating of "Reduce" from the thirteen analysts that are presently covering the firm, Marketbeat Ratings reports. Three investment analysts have rated the stock with a sell rating, eight have issued a hold rating and two have given a buy rating to the company. The average 1 year price target among brokerages that have issued a report on the stock in the last year is $117.0833.

A number of research firms have weighed in on NTRS. Barclays boosted their target price on shares of Northern Trust from $128.00 to $136.00 and gave the company an "equal weight" rating in a research note on Thursday, July 24th. Evercore ISI boosted their target price on shares of Northern Trust from $108.00 to $121.00 and gave the company an "in-line" rating in a research note on Wednesday, July 2nd. Wall Street Zen cut shares of Northern Trust from a "hold" rating to a "sell" rating in a research note on Saturday, August 16th. The Goldman Sachs Group boosted their target price on shares of Northern Trust from $89.00 to $101.00 and gave the company a "sell" rating in a research note on Wednesday, July 2nd. Finally, Truist Financial lifted their price objective on Northern Trust from $128.00 to $132.00 and gave the stock a "hold" rating in a report on Thursday, August 14th.

Insiders Place Their Bets

In other news, Director Robert Edward Jr. Moritz acquired 256 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was bought at an average price of $126.34 per share, with a total value of $32,343.04. Following the acquisition, the director owned 2,525 shares in the company, valued at $319,008.50. The trade was a 11.28% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Company insiders own 0.77% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp grew its holdings in Northern Trust by 47.8% during the 1st quarter. Bank of New York Mellon Corp now owns 1,810,816 shares of the asset manager's stock valued at $178,637,000 after buying an additional 585,992 shares in the last quarter. Massachusetts Financial Services Co. MA lifted its position in Northern Trust by 4.9% in the 1st quarter. Massachusetts Financial Services Co. MA now owns 7,850,088 shares of the asset manager's stock worth $774,411,000 after buying an additional 363,472 shares during the last quarter. Asset Management One Co. Ltd. lifted its position in Northern Trust by 8.4% in the first quarter. Asset Management One Co. Ltd. now owns 84,974 shares of the asset manager's stock valued at $8,383,000 after purchasing an additional 6,570 shares during the last quarter. Allianz Asset Management GmbH lifted its position in Northern Trust by 529.4% in the first quarter. Allianz Asset Management GmbH now owns 461,383 shares of the asset manager's stock valued at $45,515,000 after purchasing an additional 388,081 shares during the last quarter. Finally, Kathmere Capital Management LLC lifted its position in Northern Trust by 96.7% in the first quarter. Kathmere Capital Management LLC now owns 5,239 shares of the asset manager's stock valued at $517,000 after purchasing an additional 2,575 shares during the last quarter. Hedge funds and other institutional investors own 83.19% of the company's stock.

Northern Trust Stock Performance

NTRS stock traded up $2.75 during midday trading on Friday, hitting $130.06. The company's stock had a trading volume of 1,014,855 shares, compared to its average volume of 1,065,403. The stock has a market cap of $24.87 billion, a price-to-earnings ratio of 15.28, a PEG ratio of 1.55 and a beta of 1.28. The company has a quick ratio of 0.72, a current ratio of 0.72 and a debt-to-equity ratio of 0.58. The stock's 50-day moving average price is $125.33 and its 200 day moving average price is $109.78. Northern Trust has a 1 year low of $81.62 and a 1 year high of $133.00.

Northern Trust (NASDAQ:NTRS - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The asset manager reported $2.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.08 by $0.05. The firm had revenue of $2 billion during the quarter, compared to analyst estimates of $1.96 billion. Northern Trust had a return on equity of 14.06% and a net margin of 11.75%.The business's revenue was down 26.4% compared to the same quarter last year. During the same period last year, the firm posted $4.34 EPS. On average, equities analysts forecast that Northern Trust will post 8.27 EPS for the current year.

Northern Trust Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 5th will be issued a $0.80 dividend. This is an increase from Northern Trust's previous quarterly dividend of $0.75. The ex-dividend date of this dividend is Friday, September 5th. This represents a $3.20 annualized dividend and a yield of 2.5%. Northern Trust's payout ratio is 35.25%.

Northern Trust Company Profile

Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Asset Servicing and Wealth Management. The Asset Servicing segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services.