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

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

Northern Trust Price Performance

Shares of NASDAQ:NTRS opened at $165.44 on Wednesday. The business has a fifty day moving average price of $178.63 and a 200-day moving average price of $173.50. The company has a debt-to-equity ratio of 0.43, a current ratio of 0.65 and a quick ratio of 0.65. The company has a market capitalization of $30.27 billion, a PE ratio of 14.20, a PEG ratio of 0.93 and a beta of 1.24. Northern Trust has a 1-year low of $121.53 and a 1-year high of $195.78.

Northern Trust Announces Dividend

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 issued a dividend of $0.88 per share. The ex-dividend date is Friday, December 4th. This represents a $3.52 annualized dividend and a dividend yield of 2.1%. Northern Trust’s dividend payout ratio (DPR) is presently 30.21%.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Wells Fargo & Company upped their target price on shares of Northern Trust from $189.00 to $194.00 and gave the stock an “equal weight” rating in a research report on Thursday, July 23rd. Capital One Financial set a $190.00 price target on shares of Northern Trust in a research report on Tuesday, October 6th. Truist Financial boosted their price objective on shares of Northern Trust from $176.00 to $186.00 and gave the stock a “hold” rating in a research note on Friday, June 26th. Zacks Research cut shares of Northern Trust from a “strong-buy” rating to a “hold” rating in a report on Tuesday, August 25th. Finally, Citigroup raised their target price on shares of Northern Trust from $182.00 to $186.00 and gave the company a “neutral” rating in a research note on Monday, October 5th. Three equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $183.93.

Insider Transactions at Northern Trust

In related news, EVP Thomas A. South sold 1,800 shares of the stock in a transaction dated 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 directly owned 92,917 shares of the company’s stock, valued at approximately $17,180,353.30. This represents a 1.90% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Robert Moritz, Jr. acquired 255 shares of Northern Trust stock in a transaction on Wednesday, July 29th. The shares were purchased at an average price of $179.57 per share, with a total value of $45,790.35. Following the completion of the purchase, the director owned 8,400 shares in the company, valued at $1,508,388. This represents a 3.13% increase in their position. The SEC filing for this purchase provides additional information. Insiders own 0.66% of the company’s stock.

Key Headlines Impacting Northern Trust

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.

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.