Zacks Investment Research Lowers Northern Trust (NTRS) to Sell

Zacks Investment Research lowered shares of Northern Trust (NASDAQ:NTRS) from a hold rating to a sell rating in a research note published on Monday morning.

According to Zacks, “Shares of Northern Trust have underperformed the industry in the past six months. Earnings estimates have been going downward ahead of the company’s fourth quarter results. Yet, the company has an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in three of the trailing four quarters. Northern Trust continues to benefit from its strong wealth management operations, along with diversified products. Also, the Fed’s interest rate hikes are expected to further ease margin pressure and support its top line. However, despite undertaking cost-saving measures, mounting expenses continue to hurt the company's financials. Moreover, elevated non-performing assets remain concerns. Also, stretched valuation indicates limited upside potential in the stock.”

Other equities analysts have also issued reports about the company. UBS Group increased their price objective on Northern Trust from $124.00 to $125.00 and gave the stock a buy rating in a report on Monday, October 8th. Sandler O’Neill raised Northern Trust from a hold rating to a buy rating and set a $114.00 price objective for the company in a report on Thursday, October 18th. Deutsche Bank raised Northern Trust from a hold rating to a buy rating and set a $112.00 price objective for the company in a report on Thursday, October 18th. Barclays decreased their price objective on Northern Trust from $119.00 to $109.00 and set an equal weight rating for the company in a report on Wednesday, January 2nd. Finally, BidaskClub raised Northern Trust from a sell rating to a hold rating in a research note on Wednesday, October 31st. Four analysts have rated the stock with a sell rating, seven have issued a hold rating, seven have given a buy rating and one has issued a strong buy rating to the company’s stock. Northern Trust presently has a consensus rating of Hold and an average target price of $114.05.

Shares of NTRS stock opened at $88.42 on Monday. Northern Trust has a 12-month low of $75.96 and a 12-month high of $115.61. The company has a market capitalization of $19.25 billion, a P/E ratio of 18.31, a price-to-earnings-growth ratio of 1.21 and a beta of 1.08. The company has a debt-to-equity ratio of 0.36, a current ratio of 0.65 and a quick ratio of 0.65.

Northern Trust (NASDAQ:NTRS) last issued its quarterly earnings data on Wednesday, October 17th. The asset manager reported $1.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.61 by ($0.03). Northern Trust had a return on equity of 15.75% and a net margin of 23.28%. The business had revenue of $1.48 billion during the quarter, compared to the consensus estimate of $1.52 billion. During the same period last year, the company earned $1.20 earnings per share. The business’s quarterly revenue was up 9.4% compared to the same quarter last year. Equities research analysts forecast that Northern Trust will post 6.54 EPS for the current fiscal year.

Hedge funds and other institutional investors have recently modified their holdings of the business. Rehmann Capital Advisory Group boosted its stake in Northern Trust by 161.3% during the 3rd quarter. Rehmann Capital Advisory Group now owns 473 shares of the asset manager’s stock valued at $48,000 after purchasing an additional 292 shares in the last quarter. BlueMountain Capital Management LLC lifted its position in shares of Northern Trust by 438.2% during the 3rd quarter. BlueMountain Capital Management LLC now owns 1,071 shares of the asset manager’s stock valued at $109,000 after acquiring an additional 872 shares during the last quarter. Trust Department MB Financial Bank N A lifted its position in shares of Northern Trust by 20.9% during the 4th quarter. Trust Department MB Financial Bank N A now owns 1,417 shares of the asset manager’s stock valued at $118,000 after acquiring an additional 245 shares during the last quarter. TLP Group LLC lifted its position in shares of Northern Trust by 282.8% during the 3rd quarter. TLP Group LLC now owns 1,382 shares of the asset manager’s stock valued at $141,000 after acquiring an additional 1,021 shares during the last quarter. Finally, Sageworth Trust Co lifted its position in shares of Northern Trust by 296.3% during the 3rd quarter. Sageworth Trust Co now owns 1,407 shares of the asset manager’s stock valued at $144,000 after acquiring an additional 1,052 shares during the last quarter. 79.12% of the stock is owned by hedge funds and other institutional investors.

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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