Northern Trust (NASDAQ:NTRS) Reaches New 12-Month Low on Disappointing Earnings

Posted by Defense World Staff on Apr 27th, 2023

Northern Trust Co. (NASDAQ:NTRS – Get Rating)’s stock price reached a new 52-week low during mid-day trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $76.07 and last traded at $76.07, with a volume of 1012046 shares changing hands. The stock had previously closed at $78.16.

The asset manager reported $1.51 earnings per share for the quarter, missing the consensus estimate of $1.52 by ($0.01). Northern Trust had a net margin of 17.24% and a return on equity of 14.89%. The firm had revenue of $1.76 billion for the quarter, compared to analysts’ expectations of $1.78 billion. During the same period in the prior year, the firm earned $1.77 EPS. Northern Trust’s revenue for the quarter was up 1.9% compared to the same quarter last year.

Northern Trust Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Saturday, July 1st. Investors of record on Friday, June 9th will be issued a $0.75 dividend. This represents a $3.00 annualized dividend and a yield of 3.92%. Northern Trust’s dividend payout ratio (DPR) is presently 48.86%.

Wall Street Analyst Weigh In

A number of research firms recently weighed in on NTRS. StockNews.com started coverage on shares of Northern Trust in a research note on Thursday, March 16th. They set a “hold” rating on the stock. Morgan Stanley increased their price objective on Northern Trust from $97.00 to $101.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 1st. Barclays reduced their price objective on Northern Trust from $113.00 to $107.00 in a research note on Wednesday. Deutsche Bank Aktiengesellschaft dropped their target price on Northern Trust from $84.00 to $80.00 in a report on Wednesday. Finally, The Goldman Sachs Group downgraded Northern Trust from a “buy” rating to a “neutral” rating and dropped their price objective for the stock from $97.00 to $95.00 in a report on Wednesday, January 4th. One investment analyst has rated the stock with a sell rating, nine have assigned a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $97.29.

Insider Buying and Selling at Northern Trust

In related news, EVP Lauren E. Allnutt sold 559 shares of the stock in a transaction that occurred on Thursday, March 9th. The stock was sold at an average price of $87.30, for a total transaction of $48,800.70. Following the sale, the executive vice president now directly owns 5,576 shares in the company, valued at approximately $486,784.80. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In related news, EVP Lauren E. Allnutt sold 559 shares of Northern Trust stock in a transaction dated Thursday, March 9th. The stock was sold at an average price of $87.30, for a total transaction of $48,800.70. Following the completion of the transaction, the executive vice president now owns 5,576 shares in the company, valued at $486,784.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Jason J. Tyler sold 1,764 shares of the stock in a transaction that occurred on Monday, February 6th. The stock was sold at an average price of $96.98, for a total value of $171,072.72. Following the sale, the chief financial officer now directly owns 30,470 shares in the company, valued at approximately $2,954,980.60. The disclosure for this sale can be found here. Insiders own 0.63% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in Northern Trust in the fourth quarter worth approximately $134,901,000. Massachusetts Financial Services Co. MA raised its holdings in shares of Northern Trust by 51.4% in the 3rd quarter. Massachusetts Financial Services Co. MA now owns 3,457,214 shares of the asset manager’s stock valued at $295,798,000 after purchasing an additional 1,174,377 shares in the last quarter. Morgan Stanley grew its position in shares of Northern Trust by 52.1% in the 4th quarter. Morgan Stanley now owns 2,014,774 shares of the asset manager’s stock worth $178,287,000 after buying an additional 689,920 shares during the last quarter. American Century Companies Inc. grew its position in Northern Trust by 10.0% during the 4th quarter. American Century Companies Inc. now owns 6,233,609 shares of the asset manager’s stock worth $551,612,000 after purchasing an additional 566,941 shares during the last quarter. Finally, Eaton Vance Management grew its position in Northern Trust by 1,080.5% during the 1st quarter. Eaton Vance Management now owns 600,908 shares of the asset manager’s stock worth $69,974,000 after purchasing an additional 550,006 shares during the last quarter. 81.44% of the stock is currently owned by hedge funds and other institutional investors.

Northern Trust Price Performance

The company has a current ratio of 0.69, a quick ratio of 0.69 and a debt-to-equity ratio of 0.46. The firm’s fifty day moving average price is $88.67 and its 200 day moving average price is $89.83. The firm has a market capitalization of $15.89 billion, a PE ratio of 12.79 and a beta of 1.07.

About Northern Trust

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Northern Trust Corp. is a financial holding company, which engages in the provision of asset servicing, fund administration, asset management, fiduciary, and banking solutions for corporations, institutions, families, and individuals. It operates through the following segments: Corporate & Institutional Services and Wealth Management.