Northern Trust (NASDAQ:NTRS) Posts Quarterly Earnings Results, Beats Estimates By $0.53 EPS

Northern Trust (NASDAQ:NTRS) released its quarterly earnings results on Wednesday. The asset manager reported $3.40 earnings per share for the quarter, beating the consensus estimate of $2.87 by $0.53, Briefing.com reports. Northern Trust had a net margin of 14.76% and a return on equity of 16.91%. The company had revenue of $2.29 billion during the quarter, compared to analysts’ expectations of $2.26 billion. During the same quarter in the prior year, the company earned $2.29 earnings per share. The business’s quarterly revenue was up 13.4% compared to the same quarter last year.

Northern Trust Price Performance

NASDAQ NTRS opened at $165.44 on Wednesday. The company has a quick ratio of 0.65, a current ratio of 0.65 and a debt-to-equity ratio of 0.43. Northern Trust has a 12-month low of $121.53 and a 12-month high of $195.78. The company has a market capitalization of $30.27 billion, a PE ratio of 14.20, a price-to-earnings-growth ratio of 0.93 and a beta of 1.24. The firm’s 50 day moving average is $178.63 and its 200-day moving average is $173.50.

Northern Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 1st. Stockholders of record on Friday, December 4th will be issued 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 2.1%. Northern Trust’s dividend payout ratio (DPR) is 30.21%.

Insider Buying and Selling at Northern Trust

In related news, EVP Thomas A. South sold 1,800 shares of the 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 completion of the transaction, the executive vice president owned 92,917 shares in the company, valued at approximately $17,180,353.30. This represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Robert Moritz, Jr. bought 255 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The stock was acquired at an average cost of $179.57 per share, with a total value of $45,790.35. Following the transaction, the director owned 8,400 shares of the company’s stock, valued at $1,508,388. This represents a 3.13% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 0.66% of the company’s stock.

More Northern Trust News

Here are the key news stories impacting Northern Trust this week:

• Positive Sentiment: Significant earnings beat: Northern Trust reported $642.9 million in net income and $3.40 in diluted GAAP EPS; adjusted EPS was reported at $3.20, exceeding the $2.87 analyst consensus. Northern Trust Earnings Up In Q3
• Positive Sentiment: Revenue and fee growth were solid: Revenue reached $2.294 billion, up 13% year over year. Trust, investment and other servicing fees rose 8% year over year to $1.373 billion, while net interest income increased 14% to $671.4 million.
• Positive Sentiment: Assets and shareholder returns strengthened: Assets under management grew 11% year over year to approximately $2.0 trillion, while assets under custody or administration totaled $19.9 trillion. The company returned $514.2 million to shareholders through dividends and buybacks and raised its quarterly dividend from $0.80 to $0.88 per share. Northern Trust Third Quarter Results
• Neutral Sentiment: Analyst valuation remains moderately favorable: The average price target cited for NTRS is $183.93, above the recent trading level, but the shares remain below their 50-day and 200-day moving averages, indicating continued technical weakness.
• Neutral Sentiment: Northern Trust appointed former executive Rima Qureshi to its board, a governance update with limited immediate earnings impact. Northern Trust Appoints Rima Qureshi to Board
• Negative Sentiment: Sequential comparisons were less favorable: Revenue declined 15% from the prior quarter, and net income fell from $792.2 million to $642.9 million. Noninterest expense was $1.493 billion, down sequentially but still 5% higher year over year, underscoring cost pressure.

Analysts Set New Price Targets

Several research firms recently commented on NTRS. Weiss Ratings raised shares of Northern Trust from a “buy (b)” rating to a “buy (b+)” rating in a research report on Thursday, October 8th. BMO Capital Markets reduced their target price on shares of Northern Trust from $208.00 to $190.00 and set an “outperform” rating for the company in a research note on Tuesday, October 6th. Barclays increased their target price on Northern Trust from $176.00 to $189.00 and gave the stock an “equal weight” rating in a report on Thursday, July 23rd. Evercore set a $183.00 price target on Northern Trust in a research note on Thursday, October 1st. Finally, Keefe, Bruyette & Woods lifted their price target on Northern Trust from $157.00 to $175.00 and gave the company an “underperform” rating in a research note on Thursday, July 9th. Three analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Hold” and an average target price of $183.93.

Northern Trust Company Profile

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.