Northern Trust Corporation (NASDAQ:NTRS) Shares Gap Down on Disappointing Earnings

Northern Trust Corporation (NASDAQ:NTRS)’s share price gapped down before the market opened on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $86.92, but opened at $89.21. Northern Trust Corporation shares last traded at $87.71, with a volume of 2,118,454 shares trading hands.

The asset manager reported $1.18 earnings per share for the quarter, missing analysts’ consensus estimates of $1.23 by $0.05. Northern Trust Corporation had a return on equity of 12.08% and a net margin of 20.21%. The business had revenue of $1.33 billion during the quarter, compared to the consensus estimate of $1.33 billion. During the same quarter last year, the firm earned $1.09 earnings per share. The business’s quarterly revenue was up .5% on a year-over-year basis.

The firm also recently announced a quarterly dividend, which will be paid on Sunday, October 1st. Stockholders of record on Friday, September 1st will be issued a $0.42 dividend. The ex-dividend date is Wednesday, August 30th. This is an increase from Northern Trust Corporation’s previous quarterly dividend of $0.38. This represents a $1.68 dividend on an annualized basis and a dividend yield of 1.90%. Northern Trust Corporation’s payout ratio is 34.55%.

Northern Trust Corporation announced that its board has authorized a share repurchase program on Wednesday, June 28th that allows the company to repurchase $750.00 million in outstanding shares. This repurchase authorization allows the asset manager to repurchase up to 3.4% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s leadership believes its stock is undervalued.

A number of equities analysts recently commented on NTRS shares. Morgan Stanley reaffirmed an “underweight” rating and set a $86.00 price target (up from $80.00) on shares of Northern Trust Corporation in a research note on Friday, July 7th. Deutsche Bank AG dropped their price target on shares of Northern Trust Corporation from $103.00 to $93.00 and set a “hold” rating for the company in a research note on Thursday, July 20th. Royal Bank Of Canada reaffirmed a “buy” rating and set a $97.00 price target on shares of Northern Trust Corporation in a research note on Thursday, June 29th. BidaskClub cut shares of Northern Trust Corporation from a “strong-buy” rating to a “buy” rating in a research report on Wednesday, July 19th. Finally, Credit Suisse Group reissued a “hold” rating and issued a $90.00 price objective on shares of Northern Trust Corporation in a research report on Monday, May 15th. Two equities research analysts have rated the stock with a sell rating, eight have issued a hold rating, three have assigned a buy rating and one has assigned a strong buy rating to the stock. Northern Trust Corporation presently has a consensus rating of “Hold” and an average target price of $94.15.

In related news, EVP Susan Gillian Pembleton sold 9,793 shares of the business’s stock in a transaction that occurred on Wednesday, May 24th. The shares were sold at an average price of $88.29, for a total transaction of $864,623.97. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Vice Chairman William L. Morrison sold 25,000 shares of the business’s stock in a transaction that occurred on Friday, May 19th. The stock was sold at an average price of $87.28, for a total transaction of $2,182,000.00. The disclosure for this sale can be found here. In the last 90 days, insiders sold 184,974 shares of company stock valued at $17,103,543. Company insiders own 1.27% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Salem Investment Counselors Inc. raised its position in Northern Trust Corporation by 8.3% in the second quarter. Salem Investment Counselors Inc. now owns 1,083 shares of the asset manager’s stock valued at $105,000 after buying an additional 83 shares during the period. Huntington National Bank raised its position in Northern Trust Corporation by 54.0% in the second quarter. Huntington National Bank now owns 1,089 shares of the asset manager’s stock valued at $106,000 after buying an additional 382 shares during the period. Dupont Capital Management Corp purchased a new position in Northern Trust Corporation during the second quarter valued at approximately $107,000. Kings Point Capital Management purchased a new position in Northern Trust Corporation during the first quarter valued at approximately $101,000. Finally, Trust Department MB Financial Bank N A raised its position in Northern Trust Corporation by 6.5% in the first quarter. Trust Department MB Financial Bank N A now owns 1,172 shares of the asset manager’s stock valued at $101,000 after buying an additional 72 shares during the period. Hedge funds and other institutional investors own 82.90% of the company’s stock.

The stock has a market capitalization of $20.25 billion, a PE ratio of 20.12 and a beta of 0.92. The company has a 50-day moving average of $92.37 and a 200-day moving average of $89.32.

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Northern Trust Corporation Company Profile

Northern Trust Corporation is a financial holding company. The Company provides asset servicing, fund administration, asset management, fiduciary and banking solutions for corporations, institutions, families and individuals across the world. Its segments include Corporate & Institutional Services (C&IS), Wealth Management, and Treasury and Other.