Northern Trust Corp. (NASDAQ:NTRS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Wednesday. The brokerage currently has a $78.00 target price on the stock. Zacks Investment Research’s target price would indicate a potential upside of 8.27% from the company’s current price.
According to Zacks, “Northern Trust has positive record of earnings surprises in recent quarters. The company’s estimates have been stable lately ahead of its third-quarter 2016 earnings release. The company’s services like Northern Trust Hedge Fund and Target2-Securities (T2S), along with its capability to initiate new business and improving credit quality, should bolster its business performance. Further, the company remains committed towards boosting investors’ confidence with impressive capital deployment activities. However, the company’s profitability is expected to be limited by several issues such as a persistently low rate environment along with volatile equity markets. Also, mounting expenses driven by heightened regulations remain a concern.”
A number of other equities analysts have also weighed in on the company. Goldman Sachs Group Inc. lowered Northern Trust Corp. from a “buy” rating to a “neutral” rating and dropped their price objective for the stock from $82.00 to $71.00 in a research note on Thursday, July 7th. JPMorgan Chase & Co. reaffirmed a “hold” rating and issued a $72.50 price objective on shares of Northern Trust Corp. in a research note on Thursday, June 9th. Deutsche Bank AG set a $71.00 price objective on Northern Trust Corp. and gave the stock a “hold” rating in a research note on Friday, August 5th. Credit Agricole SA boosted their target price on Northern Trust Corp. from $70.00 to $73.00 and gave the stock an “underperform” rating in a research report on Friday, September 23rd. Finally, Jefferies Group reiterated a “hold” rating and issued a $71.00 target price (up from $68.00) on shares of Northern Trust Corp. in a research report on Sunday, July 24th. One equities research analyst has rated the stock with a sell rating, ten have issued a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company. Northern Trust Corp. presently has an average rating of “Hold” and an average price target of $71.81.
Northern Trust Corp. (NASDAQ:NTRS) opened at 72.04 on Wednesday. The company’s 50-day moving average price is $69.15 and its 200 day moving average price is $68.64. Northern Trust Corp. has a 52-week low of $54.38 and a 52-week high of $76.11. The company has a market capitalization of $16.32 billion, a price-to-earnings ratio of 17.80 and a beta of 1.13.
Northern Trust Corp. (NASDAQ:NTRS) last released its quarterly earnings data on Wednesday, July 20th. The company reported $1.09 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.03. The firm earned $1.32 billion during the quarter, compared to analyst estimates of $1.22 billion. Northern Trust Corp. had a return on equity of 11.38% and a net margin of 19.38%. The business’s quarterly revenue was up 4.8% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.01 earnings per share. On average, equities analysts expect that Northern Trust Corp. will post $4.24 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which was paid on Saturday, October 1st. Stockholders of record on Friday, September 2nd were paid a dividend of $0.38 per share. This is a boost from Northern Trust Corp.’s previous quarterly dividend of $0.36. The ex-dividend date was Wednesday, August 31st. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.11%. Northern Trust Corp.’s dividend payout ratio is currently 37.53%.
In other news, EVP Jeffrey D. Cohodes sold 10,000 shares of the company’s stock in a transaction that occurred on Thursday, September 1st. The stock was sold at an average price of $71.35, for a total transaction of $713,500.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Chairman Frederick H. Waddell sold 160,367 shares of the company’s stock in a transaction that occurred on Thursday, September 8th. The shares were sold at an average price of $69.81, for a total value of $11,195,220.27. The disclosure for this sale can be found here. Insiders own 1.90% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Primecap Management Co. CA purchased a new position in shares of Northern Trust Corp. during the first quarter valued at about $115,703,000. PNC Financial Services Group Inc. boosted its position in shares of Northern Trust Corp. by 651.4% in the second quarter. PNC Financial Services Group Inc. now owns 1,493,608 shares of the company’s stock valued at $98,966,000 after buying an additional 1,294,825 shares during the period. FMR LLC boosted its position in shares of Northern Trust Corp. by 13.8% in the second quarter. FMR LLC now owns 8,583,519 shares of the company’s stock valued at $568,744,000 after buying an additional 1,041,052 shares during the period. JPMorgan Chase & Co. boosted its position in shares of Northern Trust Corp. by 11.0% in the second quarter. JPMorgan Chase & Co. now owns 7,738,990 shares of the company’s stock valued at $512,786,000 after buying an additional 768,081 shares during the period. Finally, Burgundy Asset Management Ltd. boosted its position in shares of Northern Trust Corp. by 35.1% in the first quarter. Burgundy Asset Management Ltd. now owns 2,296,217 shares of the company’s stock valued at $149,644,000 after buying an additional 596,065 shares during the period. 81.71% of the stock is currently owned by hedge funds and other institutional investors.
About Northern Trust Corp.
Northern Trust Corporation is a financial holding company. The Company provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals around the world. The Company’s segments include Corporate & Institutional Services (C&IS), Wealth Management, and Treasury and Other.
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