Northern Trust (NASDAQ:NTRS) Announces Earnings Results

Key Points

• Northern Trust reported quarterly earnings of $2.29 per share, surpassing analysts' expectations of $2.21 EPS, with a net margin of 11.75%.
• The company declared a $0.80 quarterly dividend to be paid on January 1st, representing an annual yield of 2.6%.
• Institutional investors hold 83.19% of Northern Trust's stock, indicating strong institutional interest in the company's performance.

Northern Trust (NASDAQ:NTRS - Get Free Report) released its earnings results on Wednesday. The asset manager reported $2.29 EPS for the quarter, topping the consensus estimate of $2.26 by $0.03, Zacks reports. The company had revenue of $2.03 billion during the quarter, compared to analysts' expectations of $2.02 billion. Northern Trust had a net margin of 11.75% and a return on equity of 14.06%. The business's revenue was up 2.8% on a year-over-year basis. During the same quarter last year, the business earned $2.22 EPS.

Northern Trust Price Performance

NASDAQ NTRS traded down $2.29 during trading hours on Wednesday, reaching $126.23. The company's stock had a trading volume of 641,976 shares, compared to its average volume of 1,488,288. The company has a debt-to-equity ratio of 0.58, a quick ratio of 0.72 and a current ratio of 0.72. The company's 50-day moving average is $129.67 and its two-hundred day moving average is $117.27. Northern Trust has a fifty-two week low of $81.62 and a fifty-two week high of $135.48. The stock has a market cap of $24.14 billion, a PE ratio of 14.85, a PEG ratio of 1.44 and a beta of 1.31.

Northern Trust Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, January 1st. Investors of record on Friday, December 5th will be given a $0.80 dividend. The ex-dividend date is Friday, December 5th. This represents a $3.20 annualized dividend and a dividend yield of 2.5%. Northern Trust's payout ratio is currently 37.60%.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Truist Financial increased their price target on shares of Northern Trust from $132.00 to $142.00 and gave the stock a "hold" rating in a report on Thursday, October 2nd. Morgan Stanley boosted their target price on Northern Trust from $110.00 to $131.00 and gave the stock an "underweight" rating in a research report on Monday, September 29th. The Goldman Sachs Group set a $135.00 price target on Northern Trust in a report on Tuesday, September 30th. Citigroup lifted their price target on Northern Trust from $110.00 to $135.00 and gave the company a "neutral" rating in a research note on Friday, September 5th. Finally, Barclays increased their price objective on Northern Trust from $128.00 to $136.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 24th. Four investment analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $128.23.

Insider Activity

In other Northern Trust news, Director Robert Edward Jr. Moritz purchased 256 shares of Northern Trust stock in a transaction on Wednesday, August 13th. The shares were bought at an average price of $126.34 per share, with a total value of $32,343.04. Following the completion of the acquisition, the director directly owned 2,525 shares of the company's stock, valued at approximately $319,008.50. This trade represents a 11.28% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.77% of the stock is owned by company insiders.

Institutional Investors Weigh In On Northern Trust

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. EP Wealth Advisors LLC increased its position in Northern Trust by 2.7% during the second quarter. EP Wealth Advisors LLC now owns 11,394 shares of the asset manager's stock worth $1,445,000 after buying an additional 299 shares in the last quarter. Bayesian Capital Management LP purchased a new stake in Northern Trust during the 2nd quarter worth about $1,357,000. Taconic Capital Advisors LP purchased a new stake in Northern Trust during the 2nd quarter worth about $1,268,000. BI Asset Management Fondsmaeglerselskab A S raised its stake in Northern Trust by 9.4% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 9,343 shares of the asset manager's stock valued at $1,185,000 after purchasing an additional 802 shares during the last quarter. Finally, Brevan Howard Capital Management LP purchased a new position in Northern Trust in the 2nd quarter valued at about $912,000. 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.