BidaskClub Downgrades Northern Trust (NTRS) to Strong Sell

BidaskClub Downgrades Northern Trust (NTRS) to Strong Sell

BidaskClub cut shares of Northern Trust (NASDAQ:NTRS) from a sell rating to a strong sell rating in a report issued on Saturday, September 29th.

Several other analysts have also recently issued reports on the company. Wolfe Research began coverage on Northern Trust in a research report on Tuesday, September 25th. They set a market perform rating for the company. Zacks Investment Research cut Northern Trust from a buy rating to a hold rating in a report on Wednesday, September 19th. Deutsche Bank cut their price target on Northern Trust from $119.00 to $118.00 and set a hold rating for the company in a report on Thursday, August 16th. Credit Suisse Group raised their price objective on Northern Trust from $112.00 to $114.00 and gave the company a neutral rating in a research note on Friday, August 10th. Finally, Vining Sparks reaffirmed a buy rating and issued a $130.00 price objective on shares of Northern Trust in a research note on Monday, July 23rd. Eleven analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. The company currently has a consensus rating of Hold and an average price target of $116.06.

Shares of NASDAQ:NTRS opened at $106.72 on Friday. Northern Trust has a 1 year low of $91.06 and a 1 year high of $115.61. The company has a debt-to-equity ratio of 0.34, a quick ratio of 0.66 and a current ratio of 0.66. The firm has a market cap of $22.80 billion, a PE ratio of 22.10, a price-to-earnings-growth ratio of 1.19 and a beta of 0.94.

Northern Trust (NASDAQ:NTRS) last posted its earnings results on Wednesday, July 18th. The asset manager reported $1.68 earnings per share for the quarter, beating analysts’ consensus estimates of $1.63 by $0.05. Northern Trust had a return on equity of 15.02% and a net margin of 22.88%. The company had revenue of $1.52 billion for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the prior year, the company earned $1.12 earnings per share. Northern Trust’s revenue was up 13.9% on a year-over-year basis. On average, research analysts predict that Northern Trust will post 6.69 earnings per share for the current fiscal year.

Northern Trust declared that its Board of Directors has authorized a stock buyback program on Tuesday, July 17th that allows the company to buyback 25,000,000 outstanding shares. This buyback authorization allows the asset manager to purchase shares of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which was paid on Monday, October 1st. Investors of record on Friday, September 14th were paid a dividend of $0.55 per share. This represents a $2.20 annualized dividend and a yield of 2.06%. This is an increase from Northern Trust’s previous quarterly dividend of $0.42. The ex-dividend date of this dividend was Thursday, September 13th. Northern Trust’s payout ratio is 45.55%.

In other Northern Trust news, insider Teresa Parker sold 5,606 shares of the business’s stock in a transaction dated Friday, July 20th. The stock was sold at an average price of $108.23, for a total transaction of $606,737.38. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Biff Bowman sold 21,352 shares of the business’s stock in a transaction dated Thursday, August 9th. The shares were sold at an average price of $111.11, for a total value of $2,372,420.72. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 76,636 shares of company stock worth $8,488,828. 1.04% of the stock is owned by company insiders.

Several hedge funds have recently modified their holdings of the company. Vulcan Value Partners LLC grew its position in shares of Northern Trust by 56.6% in the second quarter. Vulcan Value Partners LLC now owns 2,522,199 shares of the asset manager’s stock valued at $259,509,000 after purchasing an additional 911,176 shares in the last quarter. Wells Fargo & Company MN grew its position in Northern Trust by 10.7% in the second quarter. Wells Fargo & Company MN now owns 2,388,480 shares of the asset manager’s stock worth $245,751,000 after acquiring an additional 230,226 shares during the period. Champlain Investment Partners LLC grew its position in Northern Trust by 2.0% in the first quarter. Champlain Investment Partners LLC now owns 1,339,505 shares of the asset manager’s stock worth $138,143,000 after acquiring an additional 26,015 shares during the period. Morgan Stanley grew its position in Northern Trust by 29.0% in the second quarter. Morgan Stanley now owns 911,274 shares of the asset manager’s stock worth $93,762,000 after acquiring an additional 205,050 shares during the period. Finally, Schwab Charles Investment Management Inc. grew its position in Northern Trust by 2.5% in the second quarter. Schwab Charles Investment Management Inc. now owns 765,930 shares of the asset manager’s stock worth $78,807,000 after acquiring an additional 18,635 shares during the period. 77.99% of the stock is owned by institutional investors and hedge funds.

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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