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Northern Trust Corporation (NTRS), headquartered in Chicago, Illinois, is a financial holding company. Valued at $18.2 billion by market cap, the company provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals.
Shares of this market leader in wealth management services have underperformed the broader market considerably over the past year. NTRS has gained 17.4% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.1%. In 2024, NTRS’ stock rose 5.1%, compared to SPX’s 17.2% rise on a YTD basis.
Narrowing the focus, NTRS has also lagged behind the iShares U.S. Financials ETF (IYF). The exchange-traded fund has gained about 35.7% over the past year. Moreover, the ETF’s 21% gains on a YTD basis outshine the stock’s single-digit returns over the same time frame.
NTRS’ overall performance can be attributed to increased expenses and provisions, along with losses from securities repositioning related to the supplemental pension plan and impairment charges on specific investments.
On Jul. 17, NTRS shares closed down more than 5% after reporting its Q2 results. Its revenue stood at $2.7 billion, up 53.8% year over year. Its EPS rose 178.2% year over year to $4.34.
For the current fiscal year, ending in December, analysts expect NTRS’ EPS to grow 12.2% to $7.01 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 15 analysts covering NTRS stock, the consensus is a “Hold.” That’s based on two “Strong Buy” ratings, one “Moderate Buy,” 10 “Holds,” one “Moderate Sell,” and one “Strong Sell.”
On Aug. 5, Barclays PLC (BCS) analyst Jason Goldberg maintained a “Hold” rating on NTRS with a price target of $98, implying a potential upside of 10.5% from current levels.
The mean price target of $89.96 represents a 1.5% premium to NTRS’ current price levels. The Street-high price target of $104 suggests an upside potential of 17.3%.
On the date of publication, Neha Panjwani 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.
