Wall Street Zen Downgrades Northern Trust (NASDAQ:NTRS) to Sell

Key Points

• Wall Street Zen downgraded Northern Trust from a "hold" rating to a "sell" rating, signaling a pessimistic outlook on the stock's performance.
• Other analysts followed suit with mixed ratings, with four analysts rating the stock as a sell and a consensus hold rating with an average price target of $117.08.
• Northern Trust reported earnings of $2.13 per share, exceeding estimates, but its quarterly revenue decreased by 26.4% year-over-year, highlighting potential challenges ahead.

Northern Trust (NASDAQ:NTRS - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday.

Several other equities research analysts have also recently weighed in on NTRS. Wells Fargo & Company boosted their price objective on Northern Trust from $111.00 to $120.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 24th. Barclays boosted their price objective on Northern Trust from $128.00 to $136.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 24th. Keefe, Bruyette & Woods reissued an "underperform" rating and set a $118.00 price objective (down from $120.00) on shares of Northern Trust in a research note on Thursday, July 24th. The Goldman Sachs Group boosted their price objective on Northern Trust from $89.00 to $101.00 and gave the stock a "sell" rating in a research note on Wednesday, July 2nd. Finally, Evercore ISI boosted their price objective on Northern Trust from $108.00 to $121.00 and gave the stock an "in-line" rating in a research note on Wednesday, July 2nd. Four research analysts have rated the stock with a sell rating, eight have given a hold rating and two have given a buy rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $117.08.

Northern Trust Price Performance

NASDAQ:NTRS opened at $126.02 on Friday. 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 business's 50-day simple moving average is $123.41 and its two-hundred day simple moving average is $109.25. The stock has a market cap of $24.10 billion, a PE ratio of 14.81, a P/E/G ratio of 1.70 and a beta of 1.28. Northern Trust has a 52 week low of $81.62 and a 52 week high of $133.00.

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

Hedge Funds Weigh In On Northern Trust

A number of large investors have recently bought and sold shares of the business. New York Life Investment Management LLC raised its stake in Northern Trust by 0.3% in the second quarter. New York Life Investment Management LLC now owns 29,132 shares of the asset manager's stock worth $3,694,000 after buying an additional 80 shares in the last quarter. Welch Group LLC raised its stake in Northern Trust by 2.8% in the second quarter. Welch Group LLC now owns 3,153 shares of the asset manager's stock worth $400,000 after buying an additional 87 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in Northern Trust by 9.0% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 1,062 shares of the asset manager's stock worth $135,000 after buying an additional 88 shares in the last quarter. Harbour Investments Inc. raised its stake in Northern Trust by 10.0% in the second quarter. Harbour Investments Inc. now owns 1,032 shares of the asset manager's stock worth $131,000 after buying an additional 94 shares in the last quarter. Finally, Twin Capital Management Inc. raised its stake in Northern Trust by 0.5% in the second quarter. Twin Capital Management Inc. now owns 20,071 shares of the asset manager's stock worth $2,545,000 after buying an additional 94 shares in the last quarter. Institutional investors 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.

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