Northern Trust (NASDAQ:NTRS) Shares Gap Down - Here's Why

Northern Trust Corporation (NASDAQ:NTRS - Get Free Report) shares gapped down before the market opened on Wednesday . The stock had previously closed at $126.53, but opened at $121.00. Northern Trust shares last traded at $123.03, with a volume of 623,911 shares traded.

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on NTRS shares. Truist Financial raised their price objective on shares of Northern Trust from $116.00 to $126.00 and gave the stock a "hold" rating in a research note on Thursday, July 3rd. Wells Fargo & Company lifted their target price on shares of Northern Trust from $111.00 to $120.00 and gave the stock an "equal weight" rating in a research note on Thursday. Bank of America lowered their target price on shares of Northern Trust from $123.00 to $121.00 and set a "buy" rating for the company in a research note on Wednesday, April 2nd. The Goldman Sachs Group lifted their target price on shares of Northern Trust from $89.00 to $101.00 and gave the stock a "sell" rating in a research note on Wednesday, July 2nd. Finally, Royal Bank Of Canada set a $123.00 target price on shares of Northern Trust and gave the stock an "outperform" rating in a research note on Monday, June 30th. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and two have issued a buy rating to the company. Based on data from MarketBeat, Northern Trust has an average rating of "Hold" and an average price target of $116.58.

Northern Trust Stock Performance

The firm has a market capitalization of $25.01 billion, a PE ratio of 15.09, a P/E/G ratio of 1.84 and a beta of 1.26. The company has a debt-to-equity ratio of 0.58, a current ratio of 0.72 and a quick ratio of 0.71. The firm has a fifty day moving average price of $116.75 and a 200 day moving average price of $106.85.

Northern Trust (NASDAQ:NTRS - Get Free Report) last announced its earnings results on Wednesday, July 23rd. The asset manager reported $2.13 EPS for the quarter, beating the consensus estimate of $2.08 by $0.05. Northern Trust had a return on equity of 14.06% and a net margin of 11.75%. The business had revenue of $2 billion during the quarter, compared to the consensus estimate of $1.96 billion. During the same period in the prior year, the business posted $4.34 earnings per share. Northern Trust's revenue was down 26.4% compared to the same quarter last year. Research analysts anticipate that Northern Trust Corporation will post 8.27 earnings per share for the current fiscal year.

Northern Trust Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Friday, September 5th will be given a $0.80 dividend. This represents a $3.20 annualized dividend and a dividend yield of 2.49%. The ex-dividend date of this dividend is Friday, September 5th. This is an increase from Northern Trust's previous quarterly dividend of $0.75. Northern Trust's dividend payout ratio is 27.99%.

Insider Activity at Northern Trust

In related news, insider Teresa Parker sold 6,467 shares of the company's stock in a transaction that occurred on Friday, May 9th. The shares were sold at an average price of $100.62, for a total value of $650,709.54. Following the completion of the sale, the insider owned 79,391 shares in the company, valued at approximately $7,988,322.42. This represents a 7.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Clive Bellows sold 3,300 shares of the company's stock in a transaction that occurred on Thursday, May 8th. The shares were sold at an average price of $99.95, for a total transaction of $329,835.00. Following the completion of the sale, the executive vice president owned 28,736 shares of the company's stock, valued at approximately $2,872,163.20. This trade represents a 10.30% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 9,772 shares of company stock valued at $981,069. 0.77% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Colonial Trust Co SC increased its stake in shares of Northern Trust by 6,400.0% during the 4th quarter. Colonial Trust Co SC now owns 260 shares of the asset manager's stock worth $27,000 after purchasing an additional 256 shares during the last quarter. Continuum Advisory LLC increased its stake in shares of Northern Trust by 5,340.0% during the 1st quarter. Continuum Advisory LLC now owns 272 shares of the asset manager's stock worth $27,000 after purchasing an additional 267 shares during the last quarter. Zions Bancorporation National Association UT acquired a new position in shares of Northern Trust during the 1st quarter worth $29,000. Wayfinding Financial LLC acquired a new position in shares of Northern Trust during the 1st quarter worth $35,000. Finally, GFG Capital LLC acquired a new position in shares of Northern Trust during the 2nd quarter worth $35,000. Institutional investors and hedge funds own 83.19% of the company's stock.

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.