Cerity Partners Reduces Stake in Northern Trust by 4%

Cerity Partners LLC has decreased its holdings in Northern Trust Corporation (NASDAQ: NTRS) by 4.0% during the second quarter of 2023, as reported in its latest filing with the Securities and Exchange Commission (SEC). The institutional investor now owns 544,223 shares after selling 22,460 shares, representing a value of approximately $69 million.

Several other institutional investors have also adjusted their positions in Northern Trust. Notably, Norges Bank acquired a new stake valued at $276 million. Primecap Management Co. raised its holdings by 19.5%, owning now 7,793,757 shares worth $988 million. Meanwhile, Marshall Wace LLP significantly expanded its position by 2,397.3%, acquiring an additional 630,717 shares for a total valuation of $83 million. Invesco Ltd. and LSV Asset Management also increased their stakes during the quarter, demonstrating a broader interest from hedge funds and institutional investors, who collectively own 83.19% of Northern Trust’s stock.

Stock Performance and Earnings Report

On Monday, Northern Trust’s shares opened at $133.21. The company’s 50-day moving average stands at $129.01, while the 200-day moving average is $125.33. Northern Trust boasts a market capitalization of $25.19 billion, with a price-to-earnings ratio of 15.53 and a PEG ratio of 1.44. The stock has experienced a 52-week range, with a low of $81.62 and a high of $135.48.

On October 22, 2023, Northern Trust reported its earnings, revealing an earnings per share (EPS) of $2.29, surpassing analysts’ expectations of $2.26. The company recorded a net revenue of $2.03 billion, slightly above the forecast of $2.02 billion. This represented a year-over-year revenue increase of 2.8%, although EPS was lower than the $2.22 reported during the same period last year.

Dividend Announcement and Analyst Ratings

In addition to its earnings report, Northern Trust declared a quarterly dividend of $0.80 per share, payable on January 1, 2024, to shareholders on record as of December 5, 2023. This results in an annualized dividend of $3.20 and a yield of 2.4%. The dividend payout ratio is currently 37.30%.

Analysts have recently provided insights into Northern Trust’s stock performance, with various ratings reflecting differing outlooks. The Goldman Sachs Group set a price target of $135.00, while Morgan Stanley increased its target from $110.00 to $131.00, maintaining an “underweight” rating. Evercore ISI adjusted its price target from $125.00 to $135.00 with an “in-line” rating. Overall, five analysts rate the stock as a buy, nine as hold, and three as sell, indicating a consensus rating of “Hold” with an average target price of $132.46.

In insider trading news, Director Robert Edward Jr. Moritz purchased 3,891 shares at an average price of $128.57, totaling approximately $500,266. This purchase marks a 139.21% increase in his ownership. Conversely, insider John Landers sold 766 shares at an average price of $124.35, reducing his holdings by 9.48%.

Northern Trust Corporation, based in Chicago, provides wealth management, asset servicing, asset management, and banking solutions on a global scale. The company operates through two main segments: Asset Servicing and Wealth Management, offering a variety of financial services to corporations, institutions, families, and individuals alike.