Northern Trust Corporation's stock (NASDAQ:NTRS) has reached a 52-week high, trading at $107.75. This peak reflects a significant uptrend for the financial services company, which has seen an impressive 1-year change of 45.79%. The surge to this high watermark underscores investor confidence and a robust performance period for Northern Trust, as the company continues to navigate the complexities of the financial landscape. This milestone is particularly noteworthy given the broader market conditions and sets a new benchmark for the company's stock performance over the past year.
In other recent news, Northern Trust Corporation has been in the spotlight due to its strong third-quarter earnings and net interest income dynamics. The company reported a net income of $465 million, earnings per share of $2.22, and a 20% year-over-year increase in assets under management, which reached a record $444 million. This robust performance led to several market analysts revising their outlook on the company. RBC Capital Markets, for instance, raised its price target for Northern Trust to $107, maintaining an Outperform rating. Similarly, Evercore ISI and BofA Securities increased their price targets to $103 and $115, respectively.
These adjustments were primarily driven by Northern Trust's positive earnings results and strong net interest income. The company has also been successful in achieving positive fee operating leverage, aided by favorable market conditions. However, Northern Trust continues to face challenges with persistent expense issues, which RBC Capital anticipates will be addressed by the management.
In recent developments, Northern Trust returned $453 million to shareholders through dividends and stock repurchases. BofA Securities and Evercore ISI have revised their EPS estimates for the company's fourth quarter 2024 and full-year 2025 to $1.92 and $7.58 respectively, reflecting the company's strong performance. These revisions and the recent news highlight the ongoing developments within Northern Trust.
InvestingPro Insights
Northern Trust Corporation's recent stock performance aligns with several key financial indicators and analyst sentiments. According to InvestingPro data, NTRS is currently trading at a P/E ratio of 12.62, which suggests a relatively attractive valuation compared to its earnings. This is further supported by an InvestingPro Tip indicating that the company is trading at a low P/E ratio relative to its near-term earnings growth, with a PEG ratio of 0.24 for the last twelve months as of Q3 2024.
The company's strong market position is reflected in its market capitalization of $21.29 billion. Northern Trust has demonstrated solid financial performance with a revenue of $7.86 billion over the last twelve months as of Q3 2024, representing a growth of 16.78%. This growth trajectory is complemented by an operating income margin of 28.61% for the same period, indicating efficient operational management.
An InvestingPro Tip highlights that Northern Trust has maintained dividend payments for 54 consecutive years, which may be particularly appealing to income-focused investors. The current dividend yield stands at 2.96%, offering a steady income stream alongside potential capital appreciation.
For investors seeking more comprehensive analysis, InvestingPro offers 9 additional tips for Northern Trust Corporation, providing a deeper understanding of the company's financial health and market position.
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