Northern Trust approves $2.5 billion stock repurchase program

CHICAGO - Northern Trust Corporation (NASDAQ:NTRS), currently valued at $24.81 billion by market capitalization, announced on Monday that its Board of Directors has approved a new $2.5 billion common stock repurchase authorization, replacing its previous program from October 2021. According to InvestingPro analysis, the stock is currently trading slightly below its Fair Value, with strong momentum shown by its 17.41% return over the past six months.

The new authorization has no expiration date and will allow the financial services company to repurchase shares through various methods, including open market transactions, block trades, and privately negotiated transactions. The company may also implement repurchases through trading plans adopted under Rule 10b5-1 of the Securities Exchange Act. With a P/E ratio of 15.17 and trading near its 52-week high, InvestingPro subscribers can access 8 additional key insights about Northern Trust’s valuation and growth prospects.

According to a company press release, the previous authorization had approximately 4.8 million shares of remaining repurchase capacity. Northern Trust had already repurchased 572,709 shares between July 1 and July 22, 2025.

The timing and number of shares to be repurchased will depend on various factors including price, regulatory requirements, market conditions, and corporate liquidity needs. The authorization does not obligate Northern Trust to acquire a specific number of shares and may be modified or discontinued at any time.

Northern Trust, founded in Chicago in 1889, provides wealth management, asset servicing, asset management, and banking services. As of June 30, 2025, the company reported $18.1 trillion in assets under custody/administration and $1.7 trillion in assets under management. The company maintains a strong dividend track record, having increased payments for 55 consecutive years, with a current dividend yield of 2.46%. Discover more detailed financial analysis in Northern Trust’s comprehensive Pro Research Report, available exclusively on InvestingPro.

The company maintains offices in 24 U.S. states and Washington, D.C., along with 22 locations across Canada, Europe, the Middle East, and the Asia-Pacific region.

In other recent news, Northern Trust Corporation reported impressive financial results for the second quarter of 2025. The company achieved an earnings per share (EPS) of $2.13, surpassing the forecasted $2.05. Additionally, Northern Trust’s revenue reached $2 billion, exceeding the anticipated $1.96 billion. Despite these strong financial figures, Wolfe Research upgraded Northern Trust’s stock rating from Underperform to Peerperform, citing a more positive outlook for the company. These developments highlight Northern Trust’s ability to outperform earnings expectations and attract a more favorable analyst perspective. The upgrade from Wolfe Research reflects confidence in Northern Trust’s future performance. These recent developments are crucial for investors monitoring Northern Trust’s financial health and market position.

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