Northern Trust (NASDAQ:NTRS) Hits New 12-Month High - Here's Why

Key Points

• Northern Trust Corporation's shares have reached a new 52-week high of $133.68, indicating strong market confidence, though analysts hold mixed ratings on the stock.
• The company recently increased its quarterly dividend from $0.75 to $0.80, providing a yield of 2.4%, which reflects the firm's commitment to returning value to shareholders.
• Despite beating quarterly earnings estimates, Northern Trust reported a 26.4% decline in revenue year-over-year, raising concerns about its growth trajectory amidst economic challenges.

Shares of Northern Trust Corporation (NASDAQ:NTRS - Get Free Report) reached a new 52-week high on Tuesday . The company traded as high as $133.68 and last traded at $132.90, with a volume of 31349 shares. The stock had previously closed at $131.78.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the company. Royal Bank Of Canada set a $123.00 target price on Northern Trust and gave the stock an "outperform" rating in a research report on Monday, June 30th. The Goldman Sachs Group lifted their target price on Northern Trust from $89.00 to $101.00 and gave the stock a "sell" rating in a research report on Wednesday, July 2nd. Wolfe Research raised Northern Trust from an "underperform" rating to a "peer perform" rating in a research report on Thursday, July 24th. Morgan Stanley lifted their target price on Northern Trust from $103.00 to $106.00 and gave the stock an "underweight" rating in a research report on Tuesday, July 1st. Finally, Truist Financial raised their price target on shares of Northern Trust from $128.00 to $132.00 and gave the stock a "hold" rating in a research note on Thursday, August 14th. Two research analysts have rated the stock with a Buy rating, nine have given a Hold rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Reduce" and a consensus target price of $119.58.

Northern Trust Trading Up 0.5%

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 firm has a market cap of $25.32 billion, a price-to-earnings ratio of 15.56, a price-to-earnings-growth ratio of 1.56 and a beta of 1.30. The business's fifty day moving average is $128.43 and its two-hundred day moving average is $112.68.

Northern Trust (NASDAQ:NTRS - Get Free Report) last issued its quarterly earnings results on Wednesday, July 23rd. The asset manager reported $2.13 earnings per share for the quarter, beating analysts' consensus estimates of $2.08 by $0.05. The business had revenue of $2 billion during the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same quarter last year, the business posted $4.34 earnings per share. Equities analysts anticipate that Northern Trust Corporation will post 8.27 earnings per share for the current fiscal year.

Northern Trust Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Friday, September 5th will be paid a $0.80 dividend. The ex-dividend date of this dividend is Friday, September 5th. This is a boost from Northern Trust's previous quarterly dividend of $0.75. This represents a $3.20 dividend on an annualized basis and a yield of 2.4%. Northern Trust's payout ratio is 37.60%.

Insider Transactions at Northern Trust

In other Northern Trust news, Director Robert Edward Jr. Moritz acquired 256 shares of Northern Trust stock in a transaction on Wednesday, August 13th. The shares were purchased at an average cost of $126.34 per share, with a total value of $32,343.04. Following the completion of the purchase, the director owned 2,525 shares in the company, valued at $319,008.50. The trade was a 11.28% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.77% of the company's stock.

Hedge Funds Weigh In On Northern Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of NTRS. FNY Investment Advisers LLC bought a new position in Northern Trust in the second quarter valued at approximately $25,000. Continuum Advisory LLC grew its holdings in shares of Northern Trust by 5,340.0% in the 1st quarter. Continuum Advisory LLC now owns 272 shares of the asset manager's stock valued at $27,000 after buying an additional 267 shares during the period. Hantz Financial Services Inc. grew its holdings in shares of Northern Trust by 5,225.0% in the 2nd quarter. Hantz Financial Services Inc. now owns 213 shares of the asset manager's stock valued at $27,000 after buying an additional 209 shares during the period. AlphaCore Capital LLC grew its holdings in shares of Northern Trust by 87.4% in the 2nd quarter. AlphaCore Capital LLC now owns 208 shares of the asset manager's stock valued at $27,000 after buying an additional 97 shares during the period. Finally, Zions Bancorporation National Association UT acquired a new position in shares of Northern Trust in the 1st quarter valued at $29,000. 83.19% of the stock is owned by institutional investors.

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.

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