Northern Trust (NTRS) Shares Gap Down on Disappointing Earnings
Northern Trust Co. (NASDAQ:NTRS) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $95.76, but opened at $94.21. Northern Trust shares last traded at $93.96, with a volume of 69510 shares changing hands.
The asset manager reported $1.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.61 by ($0.03). Northern Trust had a net margin of 23.28% and a return on equity of 15.75%. The business had revenue of $1.48 billion during the quarter, compared to analyst estimates of $1.52 billion. During the same quarter in the previous year, the firm posted $1.20 earnings per share. The firm’s quarterly revenue was up 9.4% on a year-over-year basis.
The firm also recently declared a quarterly dividend, which will be paid on Tuesday, January 1st. Shareholders of record on Friday, December 14th will be paid a $0.55 dividend. The ex-dividend date of this dividend is Thursday, December 13th. This represents a $2.20 annualized dividend and a yield of 2.36%. Northern Trust’s payout ratio is currently 45.55%.
Several brokerages have issued reports on NTRS. Zacks Investment Research upgraded shares of Northern Trust from a “hold” rating to a “buy” rating and set a $124.00 price target on the stock in a research note on Friday, July 20th. BidaskClub downgraded shares of Northern Trust from a “hold” rating to a “sell” rating in a research report on Tuesday, July 3rd. Deutsche Bank decreased their price objective on shares of Northern Trust from $116.00 to $115.00 and set a “hold” rating for the company in a research report on Thursday, October 11th. Citigroup lifted their price objective on shares of Northern Trust from $108.00 to $118.00 and gave the company a “neutral” rating in a research report on Friday, July 20th. Finally, Buckingham Research decreased their price objective on shares of Northern Trust from $119.00 to $114.00 and set a “neutral” rating for the company in a research report on Thursday. One investment analyst has rated the stock with a sell rating, eight have issued a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company’s stock. Northern Trust has an average rating of “Buy” and an average price target of $117.00.
In related news, CFO Biff Bowman sold 21,352 shares of Northern Trust stock in a transaction dated 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 filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Peter Cherecwich sold 19,761 shares of Northern Trust stock in a transaction dated Wednesday, August 8th. The stock was sold at an average price of $111.35, for a total transaction of $2,200,387.35. The disclosure for this sale can be found here. In the last three months, insiders sold 67,864 shares of company stock valued at $7,533,831. Insiders own 1.04% of the company’s stock.
Several hedge funds have recently made changes to their positions in the stock. Hexavest Inc. boosted its holdings in shares of Northern Trust by 26.6% during the 3rd quarter. Hexavest Inc. now owns 2,319 shares of the asset manager’s stock worth $237,000 after buying an additional 487 shares during the period. Advisor Partners LLC boosted its holdings in shares of Northern Trust by 8.9% during the 2nd quarter. Advisor Partners LLC now owns 6,468 shares of the asset manager’s stock worth $666,000 after buying an additional 530 shares during the period. World Asset Management Inc boosted its holdings 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 valued at $1,417,000 after purchasing an additional 539 shares during the period. Raymond James Trust N.A. boosted its holdings in Northern Trust by 16.3% in the 3rd quarter. Raymond James Trust N.A. now owns 4,040 shares of the asset manager’s stock valued at $413,000 after purchasing an additional 566 shares during the period. Finally, Boston Advisors LLC boosted its holdings in Northern Trust by 27.8% in the 2nd quarter. Boston Advisors LLC now owns 2,760 shares of the asset manager’s stock valued at $284,000 after purchasing an additional 600 shares during the period. 77.99% of the stock is owned by institutional investors and hedge funds.
The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.66 and a current ratio of 0.65. The firm has a market cap of $21.04 billion, a PE ratio of 19.28, a PEG ratio of 1.17 and a beta of 0.94.
About Northern Trust (NASDAQ:NTRS)
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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