Northern Trust Corporation (NASDAQ:NTRS) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Northern Trust has a consensus analyst rating of “Hold” from 16 brokerages, with an average 12-month price target of $178.75.
• The company recently beat first-quarter earnings expectations, reporting $2.71 EPS versus the $2.37 estimate and revenue of $2.21 billion, up 13.8% year over year.
• Northern Trust also declared a $0.80 quarterly dividend, or $3.20 annually, which implies a 1.7% yield and a payout ratio of 33.51%.

Shares of Northern Trust Corporation (NASDAQ:NTRS - Get Free Report) have received an average recommendation of "Hold" from the sixteen brokerages that are currently covering the firm, MarketBeat.com reports. Two equities research analysts have rated the stock with a sell recommendation, eight have issued a hold recommendation, five have issued a buy recommendation and one has given a strong buy recommendation to the company. The average 12 month target price among brokers that have issued ratings on the stock in the last year is $178.75.

Several equities research analysts have commented on the stock. BMO Capital Markets upgraded shares of Northern Trust from a "market perform" rating to an "outperform" rating and set a $168.00 price target on the stock in a research note on Monday, April 6th. Truist Financial increased 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 research report on Monday, July 6th. JPMorgan Chase & Co. lifted their target price on Northern Trust from $170.00 to $179.50 and gave the company a "neutral" rating in a research note on Monday, July 6th. Finally, Zacks Research raised Northern Trust from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, May 12th.

Northern Trust Stock Performance

NTRS stock opened at $183.55 on Monday. Northern Trust has a 1 year low of $118.99 and a 1 year high of $185.57. The stock has a market capitalization of $33.97 billion, a price-to-earnings ratio of 19.22, a PEG ratio of 1.17 and a beta of 1.25. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.62 and a current ratio of 0.62. The stock's fifty day moving average is $170.53 and its two-hundred day moving average is $154.85.

Northern Trust (NASDAQ:NTRS - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The asset manager reported $2.71 EPS for the quarter, topping the consensus estimate of $2.37 by $0.34. The business had revenue of $2.21 billion during the quarter, compared to analyst estimates of $2.13 billion. Northern Trust had a net margin of 12.84% and a return on equity of 15.94%. The company's quarterly revenue was up 13.8% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.90 earnings per share. On average, research analysts predict that Northern Trust will post 11.29 EPS for the current year.

Northern Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Investors of record on Friday, June 5th were issued a $0.80 dividend. The ex-dividend date of this dividend was Friday, June 5th. This represents a $3.20 annualized dividend and a yield of 1.7%. Northern Trust's dividend payout ratio is presently 33.51%.

Insider Activity at Northern Trust

In related news, Director Robert Edward Jr. Moritz bought 225 shares of the stock in a transaction on Friday, May 1st. The shares were purchased at an average price of $166.41 per share, with a total value of $37,442.25. Following the purchase, the director owned 8,145 shares in the company, valued at approximately $1,355,409.45. This represents a 2.84% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Clive Bellows sold 2,800 shares of the business's stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $165.02, for a total transaction of $462,056.00. Following the sale, the insider owned 28,217 shares in the company, valued at $4,656,369.34. This trade represents a 9.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 22,800 shares of company stock worth $3,785,251 in the last 90 days. Corporate insiders own 0.66% of the company's stock.

Institutional Investors Weigh In On Northern Trust

Institutional investors have recently added to or reduced their stakes in the company. Empowered Funds LLC lifted its holdings in shares of Northern Trust by 13.3% in the first quarter. Empowered Funds LLC now owns 20,112 shares of the asset manager's stock valued at $1,984,000 after buying an additional 2,363 shares during the period. Woodline Partners LP grew its holdings in Northern Trust by 39.1% during the first quarter. Woodline Partners LP now owns 16,557 shares of the asset manager's stock worth $1,633,000 after acquiring an additional 4,653 shares during the period. EverSource Wealth Advisors LLC raised its position in Northern Trust by 79.0% in the second quarter. EverSource Wealth Advisors LLC now owns 1,350 shares of the asset manager's stock worth $171,000 after acquiring an additional 596 shares in the last quarter. WINTON GROUP Ltd bought a new stake in Northern Trust in the second quarter worth about $267,000. Finally, Daiwa Securities Group Inc. lifted its holdings in Northern Trust by 4.6% in the 2nd quarter. Daiwa Securities Group Inc. now owns 29,290 shares of the asset manager's stock valued at $3,714,000 after acquiring an additional 1,275 shares during the last quarter. 83.19% of the stock is currently owned by institutional investors and hedge funds.

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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