Northern Trust (NASDAQ:NTRS) Raised to Outperform at BMO Capital Markets

Key Points

• BMO Capital Markets upgraded Northern Trust from a "market perform" to an outperform rating and set a $168 target, implying about an 18.1% upside from the prior close.
• Northern Trust beat the quarter with $2.42 EPS vs. $2.37 expected, reported $3.15B in revenue (up 8.4% YoY) and a 14.87% return on equity, indicating solid recent financial performance.
• Several analysts have raised targets (e.g., TD Cowen to $175, Goldman to $151, Evercore to $155), but the MarketBeat consensus remains a Hold with an average price target of $154.55.

Northern Trust (NASDAQ:NTRS - Get Free Report) was upgraded by research analysts at BMO Capital Markets from a "market perform" rating to an "outperform" rating in a research note issued to investors on Monday,Benzinga reports. The firm currently has a $168.00 target price on the asset manager's stock. BMO Capital Markets' price objective would indicate a potential upside of 18.10% from the company's previous close.

A number of other research firms have also recently issued reports on NTRS. TD Cowen boosted their price objective on Northern Trust from $165.00 to $175.00 and gave the company a "buy" rating in a report on Monday, January 26th. The Goldman Sachs Group upgraded Northern Trust from a "sell" rating to a "neutral" rating and lifted their target price for the stock from $148.00 to $151.00 in a research report on Monday. Wall Street Zen raised shares of Northern Trust from a "sell" rating to a "hold" rating in a research note on Saturday, December 27th. Citigroup initiated coverage on shares of Northern Trust in a report on Monday, February 23rd. They issued a "neutral" rating on the stock. Finally, Evercore raised their price target on shares of Northern Trust from $142.00 to $155.00 and gave the stock an "in-line" rating in a research note on Friday, January 23rd. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, seven have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $154.55.

Northern Trust Price Performance

Shares of NASDAQ NTRS opened at $142.25 on Monday. The company has a debt-to-equity ratio of 0.57, a current ratio of 0.69 and a quick ratio of 0.69. The company has a market cap of $26.36 billion, a P/E ratio of 16.28, a PEG ratio of 1.12 and a beta of 1.23. Northern Trust has a 1 year low of $81.62 and a 1 year high of $157.60. The firm has a 50-day simple moving average of $143.39 and a two-hundred day simple moving average of $137.29.

Northern Trust (NASDAQ:NTRS - Get Free Report) last released its earnings results on Friday, January 30th. The asset manager reported $2.42 EPS for the quarter, beating analysts' consensus estimates of $2.37 by $0.05. Northern Trust had a return on equity of 14.87% and a net margin of 12.15%.The firm had revenue of $3.15 billion for the quarter. During the same period in the prior year, the company posted $2.26 EPS. The company's quarterly revenue was up 8.4% compared to the same quarter last year. Research analysts anticipate that Northern Trust will post 8.27 earnings per share for the current year.

Insider Transactions at Northern Trust

In other Northern Trust news, CFO David W. Fox, Jr. sold 3,255 shares of the firm's stock in a transaction dated Wednesday, March 4th. The shares were sold at an average price of $143.89, for a total transaction of $468,361.95. Following the transaction, the chief financial officer owned 14,552 shares of the company's stock, valued at approximately $2,093,887.28. This trade represents a 18.28% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Robert Edward Jr. Moritz purchased 245 shares of the stock in a transaction dated Monday, February 2nd. The stock was acquired at an average cost of $151.85 per share, with a total value of $37,203.25. Following the transaction, the director directly owned 6,931 shares in the company, valued at approximately $1,052,472.35. This trade represents a 3.66% increase in their position. The disclosure for this purchase is available in the SEC filing. Insiders sold a total of 34,905 shares of company stock valued at $5,166,714 over the last three months. 0.66% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Northern Trust

A number of large investors have recently bought and sold shares of NTRS. New Age Alpha Advisors LLC boosted its position in Northern Trust by 4.9% during the 3rd quarter. New Age Alpha Advisors LLC now owns 1,659 shares of the asset manager's stock valued at $223,000 after acquiring an additional 78 shares in the last quarter. Salomon & Ludwin LLC raised its position in shares of Northern Trust by 13.1% in the 3rd quarter. Salomon & Ludwin LLC now owns 682 shares of the asset manager's stock worth $90,000 after acquiring an additional 79 shares in the last quarter. Compound Planning Inc. lifted its stake in shares of Northern Trust by 5.1% during the 3rd quarter. Compound Planning Inc. now owns 1,666 shares of the asset manager's stock worth $224,000 after purchasing an additional 81 shares during the last quarter. Apollon Wealth Management LLC boosted its position in Northern Trust by 1.9% during the fourth quarter. Apollon Wealth Management LLC now owns 4,379 shares of the asset manager's stock valued at $598,000 after purchasing an additional 81 shares in the last quarter. Finally, NorthRock Partners LLC grew its stake in Northern Trust by 2.2% in the third quarter. NorthRock Partners LLC now owns 3,812 shares of the asset manager's stock valued at $513,000 after purchasing an additional 83 shares during the last quarter. Institutional investors own 83.19% of the company's stock.

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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