Northern Trust Corp. (NTRS) Lifted to “Buy” at Zacks Investment Research
Zacks Investment Research upgraded shares of Northern Trust Corp. (NASDAQ:NTRS) from a hold rating to a buy rating in a research report released on Wednesday morning. The firm currently has $78.00 target price on the stock.
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 NTRS. JPMorgan Chase & Co. reiterated a hold rating and issued a $72.50 price target on shares of Northern Trust Corp. in a research report on Thursday, June 9th. Deutsche Bank AG reissued a hold rating and issued a $73.00 target price (down previously from $76.00) on shares of Northern Trust Corp. in a report on Thursday, June 16th. Citigroup Inc. raised shares of Northern Trust Corp. from a sell rating to a neutral rating and set a $66.00 target price on the stock in a report on Tuesday, June 28th. Credit Suisse Group AG reissued a hold rating on shares of Northern Trust Corp. in a report on Tuesday, June 28th. Finally, Goldman Sachs Group Inc. downgraded shares of Northern Trust Corp. from a buy rating to a neutral rating and lowered their target price for the stock from $82.00 to $71.00 in a report on Thursday, July 7th. 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’s stock. The stock presently has an average rating of Hold and an average price target of $72.27.
Shares of Northern Trust Corp. (NASDAQ:NTRS) traded up 0.9436% during trading on Wednesday, hitting $72.6289. 50,626 shares of the stock traded hands. The firm has a market cap of $16.46 billion, a price-to-earnings ratio of 17.9419 and a beta of 1.13. Northern Trust Corp. has a 12 month low of $54.38 and a 12 month high of $76.11. The company has a 50 day moving average price of $69.26 and a 200 day moving average price of $68.68.
Northern Trust Corp. (NASDAQ:NTRS) last posted its quarterly earnings results on Wednesday, July 20th. The company reported $1.09 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.06 by $0.03. The business earned $1.32 billion during the quarter, compared to analyst estimates of $1.22 billion. Northern Trust Corp. had a net margin of 19.38% and a return on equity of 11.38%. The company’s revenue was up 4.8% on a year-over-year basis. During the same period in the prior year, the business posted $1.01 earnings per share. Analysts anticipate that Northern Trust Corp. will post $4.24 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Saturday, October 1st. Shareholders of record on Friday, September 2nd were given 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 of this dividend was Wednesday, August 31st. This represents a $1.52 dividend on an annualized basis and a yield of 2.11%. Northern Trust Corp.’s payout ratio is 37.53%.
In other news, President William L. Morrison sold 170,563 shares of the company’s stock in a transaction dated Friday, August 5th. The shares were sold at an average price of $67.36, for a total value of $11,489,123.68. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Clair Joyce St sold 48,110 shares of the company’s stock in a transaction dated Wednesday, August 3rd. The stock was sold at an average price of $67.02, for a total transaction of $3,224,332.20. The disclosure for this sale can be found here. Company insiders own 1.90% of the company’s stock.
Several hedge funds and other institutional investors have recently bought and sold shares of the company. Primecap Management Co. CA bought a new position in Northern Trust Corp. during the first quarter worth approximately $115,703,000. PNC Financial Services Group Inc. boosted its position in 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 worth $98,966,000 after buying an additional 1,294,825 shares during the last quarter. FMR LLC boosted its position in Northern Trust Corp. by 13.8% in the second quarter. FMR LLC now owns 8,583,519 shares of the company’s stock worth $568,744,000 after buying an additional 1,041,052 shares during the last quarter. JPMorgan Chase & Co. boosted its position in Northern Trust Corp. by 11.0% in the second quarter. JPMorgan Chase & Co. now owns 7,738,990 shares of the company’s stock worth $512,786,000 after buying an additional 768,081 shares during the last quarter. Finally, Burgundy Asset Management Ltd. boosted its position in 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 worth $149,644,000 after buying an additional 596,065 shares during the last quarter. Hedge funds and other institutional investors own 81.71% of the company’s stock.
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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