ABN Amro Investment Solutions has acquired a significant stake in Northern Trust Corporation (NASDAQ:NTRS), purchasing 48,985 shares valued at approximately $6,211,000. This acquisition was disclosed in the fund’s recent 13F filing with the United States Securities and Exchange Commission, highlighting continued interest from institutional investors in the asset management firm.
In addition to ABN Amro, other hedge funds have recently adjusted their positions in Northern Trust. For instance, FNY Investment Advisers LLC entered a new stake valued at $25,000 during the second quarter. Hantz Financial Services Inc. dramatically increased its stake by 5,225%, now owning 213 shares worth about $27,000 after buying an additional 209 shares. Zions Bancorporation National Association UT acquired a position in the first quarter worth approximately $29,000, while GFG Capital LLC and Harbor Investment Advisory LLC also made new investments during the second quarter, valued at $35,000 and $41,000, respectively. Overall, institutional investors hold 83.19% of Northern Trust’s stock.
Analysts Update Price Targets for Northern Trust
Recent reports from analysts have led to new price targets for Northern Trust shares, reflecting a generally positive outlook. Evercore ISI raised its price objective from $125.00 to $135.00 in a note dated September 30, 2023, maintaining an “in-line” rating. Similarly, The Goldman Sachs Group also set a target price of $135.00, while Cowen reiterated a “buy” rating on October 23, 2023. Wolfe Research upgraded Northern Trust from “underperform” to “peer perform” on July 24, 2023. Wells Fargo & Company increased their price objective from $127.00 to $131.00, also giving the stock an “equal weight” rating.
Currently, five analysts rate the stock as a Buy, nine as a Hold, and three as a Sell. According to MarketBeat.com, the average rating is “Hold” with an average price target of $132.46.
Insider Transactions and Financial Performance
Insider activity at Northern Trust has also garnered attention. Director Robert Edward Jr. Moritz purchased 3,891 shares at an average cost of $128.57 on November 4, 2023, totaling approximately $500,265.87. Following this transaction, Moritz owns 6,686 shares valued at around $859,619.02, representing a 139.21% increase in ownership.
Conversely, Executive Vice President Susan Cohen Levy sold 27,591 shares on the same day for about $3,535,234.83, reducing her holdings by 36.38%. This transaction was similarly disclosed in SEC filings.
Northern Trust’s stock opened at $128.91 on Friday, October 27, 2023. The company maintains a market capitalization of $24.38 billion, with a price-to-earnings ratio of 15.02 and a debt-to-equity ratio of 0.58. Over the past year, shares have ranged from a low of $81.62 to a high of $135.48.
In its most recent earnings report on October 22, 2023, Northern Trust announced earnings per share (EPS) of $2.29, exceeding the consensus estimate of $2.26 by $0.03. The company generated $2.03 billion in revenue, surpassing expectations of $2.02 billion. This marked a 2.8% increase in revenue compared to the same quarter last year, when the firm reported an EPS of $2.22.
Upcoming Dividend Announcement
Northern Trust also disclosed a quarterly dividend of $0.80 per share, scheduled for payment on January 1, 2024. Shareholders of record on December 5, 2023 will receive this dividend, which translates to an annualized dividend of $3.20 and a yield of 2.5%. The company’s dividend payout ratio currently stands at 37.30%.
Northern Trust Corporation is a financial holding company that provides a range of services, including wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals globally. Its operations are divided into two segments: Asset Servicing and Wealth Management.
