Northern Trust (NASDAQ:NTRS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Wednesday, September 19th.

According to Zacks, “Shares of Northern Trust have outperformed the industry in the last six months. Further, the company has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Northern Trust continues to benefit from its strong wealth management operations, along with diversified products. Further, it continues to enhance shareholders' value through steady capital-deployment activities, reflecting strong capital position. Also, the Fed’s interest rate hikes are expected to further ease margin pressure and support its top line. However, despite undertaking cost-saving measures, mounting expenses continue to hurt the company's financials.”

Several other equities research analysts also recently commented on the stock. Credit Suisse Group boosted their target price on shares of Northern Trust from $112.00 to $114.00 and gave the stock a “neutral” rating in a research report on Friday, August 10th. Morgan Stanley boosted their target price on shares of Northern Trust from $110.00 to $117.00 and gave the stock a “$108.44” rating in a research report on Thursday, July 19th. BidaskClub downgraded shares of Northern Trust from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 18th. Deutsche Bank decreased their target price on shares of Northern Trust from $119.00 to $118.00 and set a “hold” rating for the company in a research report on Thursday, August 16th. Finally, Keefe, Bruyette & Woods set a $118.00 target price on shares of Northern Trust and gave the stock a “hold” rating in a research report on Wednesday, July 18th. Eleven equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. The stock currently has an average rating of “Hold” and a consensus target price of $115.88.

NTRS stock traded down $0.11 during midday trading on Wednesday, hitting $99.05. The stock had a trading volume of 1,688,552 shares, compared to its average volume of 1,144,030. The firm has a market cap of $22.80 billion, a price-to-earnings ratio of 20.51, a PEG ratio of 1.19 and a beta of 0.94. The company has a quick ratio of 0.66, a current ratio of 0.66 and a debt-to-equity ratio of 0.34. Northern Trust has a 1-year low of $91.06 and a 1-year high of $115.61.

Northern Trust (NASDAQ:NTRS) last announced its quarterly earnings data on Wednesday, July 18th. The asset manager reported $1.68 earnings per share for the quarter, beating the consensus estimate of $1.63 by $0.05. Northern Trust had a net margin of 22.88% and a return on equity of 15.02%. The firm had revenue of $1.52 billion for the quarter, compared to analyst estimates of $1.50 billion. During the same quarter in the prior year, the business earned $1.12 earnings per share. The business’s quarterly revenue was up 13.9% compared to the same quarter last year. Research analysts expect that Northern Trust will post 6.69 earnings per share for the current year.

Northern Trust declared that its board has authorized a share buyback plan on Tuesday, July 17th that authorizes the company to buyback 25,000,000 shares. This buyback authorization authorizes the asset manager to repurchase shares of its stock through open market purchases. Shares buyback plans are often a sign that the company’s leadership believes its shares are undervalued.

In related news, CFO Biff Bowman sold 21,352 shares of the company’s stock in a transaction that occurred on Thursday, August 9th. The shares were sold at an average price of $111.11, for a total transaction of $2,372,420.72. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Clair Joyce St sold 3,166 shares of the company’s stock in a transaction that occurred on Tuesday, July 24th. The shares were sold at an average price of $112.00, for a total transaction of $354,592.00. The disclosure for this sale can be found here. Insiders have sold a total of 76,636 shares of company stock valued at $8,488,828 over the last three months. Insiders own 1.04% of the company’s stock.

Hedge funds have recently made changes to their positions in the stock. Chesley Taft & Associates LLC lifted its stake in Northern Trust by 14.4% in the 3rd quarter. Chesley Taft & Associates LLC now owns 84,846 shares of the asset manager’s stock worth $8,665,000 after purchasing an additional 10,690 shares in the last quarter. Rathbone Brothers plc lifted its stake in Northern Trust by 10.9% in the 3rd quarter. Rathbone Brothers plc now owns 128,467 shares of the asset manager’s stock worth $13,120,000 after purchasing an additional 12,667 shares in the last quarter. Gofen & Glossberg LLC IL lifted its stake in Northern Trust by 2.5% in the 3rd quarter. Gofen & Glossberg LLC IL now owns 167,605 shares of the asset manager’s stock worth $17,117,000 after purchasing an additional 4,101 shares in the last quarter. North Star Investment Management Corp. lifted its stake in Northern Trust by 4.7% in the 3rd quarter. North Star Investment Management Corp. now owns 18,774 shares of the asset manager’s stock worth $1,917,000 after purchasing an additional 845 shares in the last quarter. Finally, World Asset Management Inc lifted its stake in Northern Trust by 4.0% in the 3rd quarter. World Asset Management Inc now owns 13,870 shares of the asset manager’s stock worth $1,417,000 after purchasing an additional 539 shares in the last quarter. Institutional investors own 77.99% of the company’s stock.

About Northern Trust

Northern Trust Corporation, a financial holding company, provides asset servicing, fund administration, asset management, fiduciary, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates through Corporate & Institutional Services (C&IS) and Wealth Management segments.

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Analyst Recommendations for Northern Trust (NASDAQ:NTRS)

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