Northern Trust Stock Soars After Strong Earnings Report
Northern Trust Corporation (NTRS), a financial holding company based in Chicago, has a market capitalization of $21.6 billion. The firm offers specialized wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals.
Stock Performance Outstrips Market Growth
In the past year, Northern Trust’s shares have significantly outperformed the broader market. NTRS has gained 43.7%, while the S&P 500 Index ($SPX) rose nearly 31%. In 2024, NTRS continues its upward trajectory with a 29.7% increase compared to the SPX’s 25.2% rise year-to-date.
Comparison to the Financial Sector
When looking closely, NTRS slightly trails the Financials Select Sector SPDR Fund (XLF), which increased approximately 43.8% over the last year and 34.9% so far in 2024.
Impressive Third-Quarter Earnings
On October 23, Northern Trust announced its third-quarter earnings, resulting in a 7% surge in its share price. The company reported a 42% rise in profits, fueled by an 8% increase in investment and servicing fees, totaling $1.2 billion, and a 23% growth in assets under custody or administration, reaching $17.4 trillion. Net income climbed to $464.9 million ($2.22 per share), up from $327.8 million ($1.49 per share) a year prior. Additionally, net interest income rose 21% to $569.4 million, and foreign exchange trading income increased by 4% to $54.1 million.
Future Earnings Expectations
For the fiscal year ending in December, analysts predict NTRS’s earnings per share (EPS) will grow by 19.8% to $7.49 on a diluted basis. The company’s track record is notable, having exceeded consensus estimates in each of the last four quarters.
Analyst Opinions on NTRS Stock
Among the 14 analysts covering Northern Trust stock, the consensus rating is a “Hold.” This reflects one “Strong Buy,” one “Moderate Buy,” nine “Holds,” one “Moderate Sell,” and two “Strong Sells.” This level of caution contrasts with an earlier outlook where two analysts rated the stock as a “Strong Buy.”
Recent Analyst Actions
On November 14, Wells Fargo & Company (WFC) raised Northern Trust’s price target from $108 to $110 while maintaining an “Equal-Weight” rating. They cited a possible regulatory change following the U.S. elections, enhanced EPS estimates, and greater flexibility for capital returns and mergers as reasons for this change.
Currently, NTRS trades above its average price target of $105.27, but the highest price target set by analysts is $115, indicating a potential upside of 5.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
