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Northern Trust Corporation's stock (NASDAQ:NTRS) reached a 52-week high, soaring to $108.55, marking a significant milestone for the wealth management firm. This peak reflects a robust year-over-year growth, with the company's stock value surging by an impressive 43.61%. Investors have shown increased confidence in Northern Trust's performance and strategic initiatives, which have evidently paid off, propelling the stock to new heights within the past year. The 52-week high serves as a testament to the company's resilience and adaptability in a dynamic financial landscape.
In other recent news, Northern Trust Corporation has been making headlines with its impressive third-quarter earnings. The financial services company reported a net income of $465 million and earnings per share of $2.22, largely driven by a rise in Trust fees, particularly in Wealth Management, which saw a 9% increase. Assets under management (AUM) also reached a record $444 billion, marking a 20% year-over-year increase.
RBC Capital Markets, Evercore ISI, and BofA Securities have all responded positively to these developments. RBC reaffirmed an Outperform rating for Northern Trust and increased its price target to $107.00. Similarly, Evercore ISI maintained an In-Line rating while raising the price target to $103, and BofA Securities increased its price target to $115.
These firms have revised their earnings per share (EPS) estimates for Northern Trust's fourth quarter 2024 and full-year 2025 to $1.92 and $7.58 respectively, reflecting the company's strong performance. Despite facing challenges with persistent expense issues, Northern Trust's management is actively working to reduce expense growth, a move that analysts believe will further strengthen the company's financial standing in the future.
InvestingPro Insights
Northern Trust Corporation's recent achievement of a 52-week high is further supported by data from InvestingPro. The company's stock has demonstrated remarkable momentum, with a 24.44% price total return over the past three months and a 28.06% return over six months. This aligns with the InvestingPro Tip indicating a "strong return over the last three months."
The company's financial health appears robust, with a P/E ratio of 13.49, suggesting a potentially undervalued stock relative to earnings. This is reinforced by an InvestingPro Tip noting that Northern Trust is "trading at a low P/E ratio relative to near-term earnings growth." Additionally, the company boasts a dividend yield of 2.79%, underpinned by its impressive track record of maintaining dividend payments for 54 consecutive years, as highlighted by another InvestingPro Tip.
For investors seeking more comprehensive analysis, InvestingPro offers 10 additional tips for Northern Trust Corporation, providing deeper insights into the company's financial position and market performance.
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