Northern Trust (NASDAQ:NTRS) Stock Breaks Above 50-Day Moving Average - What's Next?

Key Points

• Northern Trust shares rose above their 50-day moving average, trading as high as $178.14 and last quoted at $178.02, compared with the average of $174.80.
• Analysts maintain a consensus Hold rating, with an average price target of $181.03; two rate the stock Buy, eleven Hold, and two Sell.
• The company beat quarterly earnings and revenue estimates: EPS was $3.40 versus $2.87 expected, while revenue increased 13.4% year over year to $2.30 billion. Northern Trust also declared a quarterly dividend of $0.88 per share.

Northern Trust Corporation (NASDAQ:NTRS - Get Free Report)'s stock price crossed above its 50-day moving average during trading on Wednesday. The stock has a 50-day moving average of $174.80 and traded as high as $178.14. Northern Trust shares last traded at $178.02, with a volume of 1,002,563 shares trading hands.

Wall Street Analysts Forecast Growth

NTRS has been the subject of a number of recent analyst reports. Wells Fargo & Company upped their price target on shares of Northern Trust from $189.00 to $194.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. Bank of America cut their price target on shares of Northern Trust from $200.00 to $187.00 in a report on Monday, October 5th. JPMorgan Chase & Co. boosted their price objective on shares of Northern Trust from $185.00 to $191.50 and gave the company a "neutral" rating in a research report on Friday, October 30th. The Goldman Sachs Group upped their price objective on shares of Northern Trust from $190.00 to $192.00 and gave the company a "neutral" rating in a research note on Friday, October 2nd. Finally, TD Cowen began coverage on shares of Northern Trust in a report on Thursday, October 8th. They set a "hold" rating and a $175.00 target price for the company. Two research analysts have rated the stock with a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $181.03.

Northern Trust Price Performance

The company has a debt-to-equity ratio of 0.43, a current ratio of 0.61 and a quick ratio of 0.61. The firm has a 50-day simple moving average of $174.80 and a 200 day simple moving average of $165.71. The firm has a market cap of $32.24 billion, a PE ratio of 13.95, a price-to-earnings-growth ratio of 0.88 and a beta of 1.21.

Northern Trust (NASDAQ:NTRS - Get Free Report) last released its earnings results on Wednesday, October 21st. The asset manager reported $3.40 EPS for the quarter, topping the consensus estimate of $2.87 by $0.53. Northern Trust had a return on equity of 17.97% and a net margin of 15.86%. The business had revenue of $2.30 billion for the quarter, compared to the consensus estimate of $2.26 billion. During the same period in the previous year, the company posted $2.29 earnings per share. The company's revenue for the quarter was up 13.4% compared to the same quarter last year. As a group, equities analysts expect that Northern Trust Corporation will post 12.00 EPS for the current year.

Northern Trust Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, January 1st. Stockholders of record on Friday, December 4th will be paid a $0.88 dividend. The ex-dividend date is Friday, December 4th. This represents a $3.52 dividend on an annualized basis and a dividend yield of 2.0%. Northern Trust's payout ratio is currently 27.59%.

Insider Activity

In related news, Director Robert Moritz, Jr. bought 236 shares of the business's stock in a transaction on Friday, October 30th. The stock was acquired at an average price of $169.07 per share, with a total value of $39,900.52. Following the transaction, the director owned 8,636 shares in the company, valued at approximately $1,460,088.52. This trade represents a 2.81% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Thomas South sold 1,800 shares of the business's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $184.90, for a total transaction of $332,820.00. Following the sale, the executive vice president owned 92,917 shares of the company's stock, valued at approximately $17,180,353.30. This represents a 1.90% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 22,706 shares of company stock valued at $3,850,282 over the last three months. Insiders own 0.66% of the company's stock.

Hedge Funds Weigh In On Northern Trust

Hedge funds and other institutional investors have recently modified their holdings of the company. Continuum Advisory LLC purchased a new stake in Northern Trust in the second quarter worth about $26,000. Basecamp Wealth Advisors LLC raised its stake in shares of Northern Trust by 99.0% in the first quarter. Basecamp Wealth Advisors LLC now owns 203 shares of the asset manager's stock worth $28,000 after buying an additional 101 shares during the period. NBH Bank purchased a new position in shares of Northern Trust during the 2nd quarter valued at about $30,000. Keating Financial Advisory Services Inc. purchased a new position in shares of Northern Trust during the 2nd quarter valued at about $31,000. Finally, Clearstead Trust LLC bought a new position in shares of Northern Trust during the 2nd quarter valued at approximately $37,000. 83.19% of the stock is owned by institutional investors.

About Northern Trust

Northern Trust Corporation NASDAQ: NTRS is a financial services company that provides wealth management, asset servicing, asset management and banking services. The company serves institutional investors, corporations, financial institutions, high-net-worth individuals and families.

Its offerings include custody and administration of investment assets, fund accounting, securities lending, foreign exchange, treasury services, investment management, trust and estate services, private banking and wealth planning.

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