Northern Trust Corporation's stock (NASDAQ:NTRS) has reached a new 52-week high, trading at $111.31. This peak reflects a significant uptrend in the company's stock value, marking a notable milestone for investors and the financial services firm alike. Over the past year, Northern Trust has seen an impressive 44.39% increase in its stock price, indicating strong performance and investor confidence. This surge in value underscores the company's resilience and growth potential in a dynamic economic landscape.
In other recent news, Northern Trust Corporation demonstrated a solid financial performance in the third quarter of 2024, reporting robust results. The company's net income reached $465 million with earnings per share of $2.22. Key contributing factors included a 9% increase in Trust fees in Wealth Management and assets under management (AUM) reaching a record $444 billion, marking a 20% year-over-year increase.
RBC Capital Markets, BofA Securities, and Evercore ISI have all adjusted their outlooks on Northern Trust following these developments. RBC raised its price target to $107 and reaffirmed an Outperform rating, while Evercore ISI and BofA Securities increased their price targets to $103 and $115 respectively.
The analysts anticipate that Northern Trust's management will work to reduce expense growth, despite acknowledging potential challenges. They have revised their 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.
These recent developments have led to a return of $453 million to shareholders through dividends and stock repurchases. The company is focusing on enhancing operational efficiency and strategic investments for future growth. Despite facing potential headwinds from interest rate cuts, Northern Trust remains committed to achieving positive operating leverage and reducing the expense-to-trust fee ratio.
InvestingPro Insights
Northern Trust Corporation's recent stock performance aligns with several key metrics and insights from InvestingPro. The company's stock is indeed trading near its 52-week high, with InvestingPro data showing it at 99.6% of this peak. This corroborates the strong uptrend mentioned in the article, with InvestingPro reporting a remarkable 50.63% total return over the past year.
InvestingPro Tips highlight that Northern Trust has maintained dividend payments for 54 consecutive years, demonstrating a commitment to shareholder value that likely contributes to investor confidence. Additionally, the company's P/E ratio of 13.78 suggests it may be undervalued relative to its near-term earnings growth potential, which could be driving the recent stock price surge.
For investors seeking a deeper understanding of Northern Trust's financial health and market position, InvestingPro offers 11 additional tips, providing a comprehensive analysis to inform investment decisions.
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