ABN Amro Investment Solutions Acquires Significant Stake in Northern Trust

ABN Amro Investment Solutions has acquired a substantial stake in Northern Trust Corporation (NASDAQ:NTRS), purchasing 48,985 shares valued at approximately $6.2 million. This acquisition took place during the second quarter of 2023, as confirmed in the fund’s recent 13F filing with the Securities and Exchange Commission.

A number of other institutional investors have also adjusted their holdings in Northern Trust. FNY Investment Advisers LLC initiated a new stake valued at $25,000, while Hantz Financial Services Inc. increased its investment by an impressive 5,225%, now owning 213 shares worth about $27,000. Additionally, Zions Bancorporation National Association UT acquired shares worth around $29,000, and GFG Capital LLC invested approximately $35,000. Another firm, Harbor Investment Advisory LLC, raised its stake by 68.4%, owning 320 shares valued at $41,000 after adding 130 shares.

Institutional investors now hold 83.19% of Northern Trust’s stock, reflecting strong confidence in the asset manager.

Analysts Boost Price Targets for Northern Trust

Recent reports from several analysts indicate positive sentiment surrounding Northern Trust shares. Evercore ISI raised its price target from $125.00 to $135.00, maintaining an “in-line” rating. Similarly, The Goldman Sachs Group set a target price of $135.00, while Cowen reaffirmed a “buy” rating. Wells Fargo & Company also increased its price objective from $127.00 to $131.00.

Currently, five analysts have assigned a “buy” rating to Northern Trust, while nine have rated it as a “hold” and three as a “sell.” According to MarketBeat.com, the stock has an average rating of “hold” and an average price target of $132.46.

Insider Transactions and Company Performance

Recent insider activity further highlights the dynamics at Northern Trust. Director Robert Edward Jr. Moritz purchased 3,891 shares on November 4, 2023, at an average price of $128.57, totaling approximately $500,265.87. This transaction increased his ownership stake by 139.21% to a total of 6,686 shares, valued at $859,619.02. Conversely, Executive Vice President Susan Cohen Levy sold 27,591 shares on the same day at an average price of $128.13, amounting to about $3.54 million. Following this sale, Levy retained 48,257 shares, valued at approximately $6.18 million.

Northern Trust’s stock opened at $128.91 on November 3, 2023. The company, which has a market capitalization of $24.38 billion, reported earnings per share (EPS) of $2.29 for the quarter ending October 22, surpassing analyst expectations of $2.26. Revenue for the same period was $2.03 billion, slightly above predictions of $2.02 billion, reflecting a 2.8% increase compared to the previous year.

Northern Trust’s robust performance is complemented by a recently announced quarterly dividend of $0.80 per share, set to be paid on January 1, 2024, to stockholders of record as of December 5, 2023. This dividend reflects a 2.5% yield, with a payout ratio of 37.30%.

With a strong focus on wealth management, asset servicing, and banking solutions, Northern Trust Corporation operates globally, catering to corporations, institutions, families, and individuals. Its two main segments, Asset Servicing and Wealth Management, have positioned the company well within the financial sector.