Northern Trust Corp (NASDAQ:NTRS) Executive Vice President Thomas A. South recently sold 5,000 shares of the company's common stock, according to a recent SEC filing. The shares were sold at a weighted average price ranging from $105.49 to $106.10, totaling approximately $529,000. Following this transaction, South holds 49,756 shares directly, along with 3,848.39 shares indirectly through a 401(k) plan as of September 30, 2024.
In other recent news, Northern Trust Corporation (NASDAQ:NTRS) continues to make waves with its strong financial performance. The company's third-quarter earnings report revealed a net income of $465 million and earnings per share of $2.22, largely driven by a 9% increase in Trust fees in the Wealth Management sector and assets under management (AUM) reaching a record $444 billion, marking a 20% year-over-year increase.
In response to these impressive results, several analysts have adjusted their outlook on Northern Trust. RBC Capital Markets raised their price target for the company to $107, maintaining an Outperform rating. Evercore ISI and BofA Securities also increased their price targets to $103 and $115 respectively, reflecting the company's strong earnings performance.
These firms have also revised their earnings per share estimates for Northern Trust's fourth quarter of 2024 and full year 2025 to $1.92 and $7.58 respectively. Despite facing challenges with persistent expense issues, Northern Trust's management has been actively working on achieving positive fee operating leverage, aided by favorable market conditions.
These recent developments led to a return of $453 million to shareholders through dividends and stock repurchases. As Northern Trust navigates through varying economic conditions, its reputable management team and established position in the industry provide a solid foundation for the company to overcome current and future challenges.
InvestingPro Insights
Northern Trust Corp's recent stock performance and financial metrics offer additional context to the executive's stock sale. According to InvestingPro data, the company's shares are trading near their 52-week high, with a strong return of 57.35% over the past year. This robust performance aligns with the timing of Thomas A. South's decision to sell a portion of his holdings.
The company's financial health appears solid, with InvestingPro Tips highlighting that Northern Trust has maintained dividend payments for an impressive 54 consecutive years. This long-standing commitment to shareholder returns is further supported by the company's current dividend yield of 2.85%.
From a valuation perspective, Northern Trust is trading at a P/E ratio of 13.12, which InvestingPro Tips suggest is low relative to its near-term earnings growth. This could indicate that the stock may still have room for appreciation, despite its recent strong performance.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Northern Trust Corp, providing a deeper dive into the company's financial outlook and market position.
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