Jane Karpinski, Executive Vice President of Northern Trust Corp (NASDAQ:NTRS), recently sold 4,338 shares of the company's common stock. The shares were sold at an average price of $100.96 each, resulting in a total transaction value of $437,964. Following this sale, Karpinski holds 19,498 shares directly. Additionally, she has an indirect ownership of 81 shares through an Employee Share Ownership Plan as of September 30, 2024.
In other recent news, Northern Trust Corporation (NASDAQ:NTRS) reported strong third-quarter results, with net income of $465 million and earnings per share of $2.22. Trust fees, particularly in Wealth Management, saw a 9% increase, and assets under management reached a record $444 billion, marking a 20% year-over-year increase. This positive performance led to a return of $453 million to shareholders through dividends and stock repurchases.
RBC Capital Markets, Evercore ISI, and BofA Securities have all responded positively to these recent developments. RBC Capital Markets reaffirmed an Outperform rating for the stock and raised its price target to $107.00, up from the previous $100.00. Evercore ISI increased the price target for Northern Trust to $103, maintaining an In-Line rating. BofA Securities also increased its price target for the company to $115, based on the strong earnings performance.
These firms anticipate that Northern Trust's management will continue to work on reducing expense growth and achieving positive fee operating leverage. BofA Securities and Evercore ISI 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.
InvestingPro Insights
As Jane Karpinski's recent stock sale draws attention to Northern Trust Corp (NASDAQ:NTRS), it's worth examining some key financial metrics and insights provided by InvestingPro.
Northern Trust's stock has shown impressive performance, with a 66.95% total return over the past year. This strong momentum is further evidenced by the stock trading near its 52-week high, at 98.15% of that peak. The company's current market capitalization stands at $20.33 billion, reflecting its significant presence in the financial services sector.
From a valuation perspective, Northern Trust appears attractively priced with a P/E ratio of 12.8, which is relatively low compared to its near-term earnings growth potential. This is highlighted by one of the InvestingPro Tips, suggesting that the company may be undervalued relative to its earnings prospects.
Investors focused on income might appreciate Northern Trust's commitment to shareholder returns. The company boasts a dividend yield of 2.93% and has maintained dividend payments for an impressive 54 consecutive years, as noted in another InvestingPro Tip. This long-standing dividend history underscores the company's financial stability and commitment to returning value to shareholders.
It's also worth noting that Northern Trust has seen positive analyst sentiment, with 8 analysts revising their earnings estimates upward for the upcoming period. This, coupled with the company's profitability over the last twelve months, paints a picture of a financially sound institution with potential for growth.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips on Northern Trust, providing a deeper dive into the company's financial health and market position.
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