Northern Trust Corporation (NASDAQ:NTRS) to Issue Quarterly Dividend of $0.80

Key Points

• Northern Trust Corporation has declared a quarterly dividend of $0.80 per share, with stockholders of record on December 5 set to receive this payment on January 1.
• The company's current payout ratio is 35.2%, indicating that its dividend is well-covered by earnings, with projected EPS of $9.03 for the next year.
• Northern Trust reported a 26.4% decline in revenue year-over-year for its last quarter despite a net margin of 11.75% and beating earnings expectations.

Northern Trust Corporation (NASDAQ:NTRS - Get Free Report) declared a quarterly dividend on Tuesday, October 21st. Stockholders of record on Friday, December 5th will be given a dividend of 0.80 per share by the asset manager on Thursday, January 1st. This represents a c) dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date of this dividend is Friday, December 5th.

Northern Trust has a payout ratio of 35.2% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Northern Trust to earn $9.03 per share next year, which means the company should continue to be able to cover its $3.00 annual dividend with an expected future payout ratio of 33.2%.

Northern Trust Stock Down 0.3%

Northern Trust stock opened at $128.52 on Wednesday. Northern Trust has a twelve month low of $81.62 and a twelve month high of $135.48. The firm has a 50 day moving average price of $129.67 and a 200-day moving average price of $117.27. The company has a market capitalization of $24.58 billion, a P/E ratio of 15.10, a P/E/G ratio of 1.44 and a beta of 1.31. The company has a quick ratio of 0.72, a current ratio of 0.72 and a debt-to-equity ratio of 0.58.

Northern Trust (NASDAQ:NTRS - Get Free Report) last released its quarterly earnings data on Wednesday, July 23rd. The asset manager reported $2.13 EPS for the quarter, topping the consensus estimate of $2.08 by $0.05. The company had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.96 billion. Northern Trust had a net margin of 11.75% and a return on equity of 14.06%. Northern Trust's revenue for the quarter was down 26.4% on a year-over-year basis. During the same period last year, the firm earned $4.34 EPS. As a group, equities analysts predict that Northern Trust will post 8.27 EPS for the current year.

Insider Buying and Selling at Northern Trust

In related news, Director Robert Edward Jr. Moritz acquired 256 shares of the stock in a transaction dated Wednesday, August 13th. The shares were purchased at an average price of $126.34 per share, for a total transaction of $32,343.04. Following the transaction, the director owned 2,525 shares in the company, valued at $319,008.50. This represents a 11.28% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 0.77% of the company's stock.

Institutional Trading of Northern Trust

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

About Northern Trust

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.

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