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Chicago, Illinois-based Northern Trust Corporation (NTRS) operates as a holding company, providing wealth management, asset servicing, asset management, and banking solutions for organizations, families, and individuals worldwide. With a market cap of $19.9 billion, the company operates through Asset Servicing and Wealth Management segments.
Companies worth $10 billion or more are generally described as “large-cap stocks,” Northern Trust fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the asset management industry.
NTRS touched its two-year high of $114.67 on Feb. 7 and is currently trading 11.4% below that peak. Meanwhile, NTRS has dipped 1.9% over the past three months, marginally underperforming the Dow Jones Industrial Average's ($DOWI) 1.6% decline during the same time frame.
Northern Trust’s performance looks much more impressive over the longer time frame. NTRS stock has soared 11.9% over the past six months and 18.4% over the past 52 weeks, notably outperforming Dow’s 1.6% uptick over the past six months and 8.3% returns over the past year.
To confirm the overall bullish trend and recent downturn, NTRS has traded consistently above its 200-day moving average over the past year and dropped below its 50-day moving average earlier this month.
Northern Trust’s stock prices rose 2% and maintained a positive momentum for the next five trading sessions after the release of its impressive Q4 results on Jan. 23. Driven by solid momentum across its businesses and growth in net interest income and assets under management & custody, the company’s total revenues increased more than 26% year-over-year to $1.97 billion, exceeding the Street’s expectations by a notable margin. Furthermore, the company’s earnings also experienced a significant boost. Its EPS came in at $2.26, which exceeded the consensus estimates by 11.9%. Moreover, Northern Trust’s return on average equity surged to 15.3%, up from the 4% reported in the year-ago quarter which boosted investor confidence.
Meanwhile, Northern Trust has significantly outperformed its peer T. Rowe Price Group, Inc.’s (TROW) 11.2% decline over the past six months and a 19.3% drop over the past 52 weeks.
However, analysts remain cautious about the stock’s prospects. Among the 15 analysts covering the NTRS stock, the consensus rating is a “Hold.” Its mean price target of $117.43 suggests a 15.6% upside potential from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
