ABN Amro Investment Solutions Acquires 48,985 Shares in Northern Trust

ABN Amro Investment Solutions has acquired a significant stake in Northern Trust Corporation, purchasing 48,985 shares of the asset manager’s stock valued at approximately $6.2 million. This transaction was disclosed in the fund’s latest 13F filing with the Securities and Exchange Commission (SEC), highlighting a strategic move in the investment landscape during the second quarter of 2023.

Other institutional investors have also adjusted their positions in Northern Trust. FNY Investment Advisers LLC entered a new stake valued at $25,000, while Hantz Financial Services Inc. remarkably increased its stake by 5,225%, now holding 213 shares worth $27,000. Similarly, Zions Bancorporation National Association UT acquired a new position valued at approximately $29,000, and GFG Capital LLC bought into the company for around $35,000. Harbor Investment Advisory LLC also raised its stake by 68.4%, bringing its total to 320 shares valued at $41,000. Currently, institutional investors own 83.19% of Northern Trust’s shares.

Analysts Weigh In on Northern Trust’s Stock

Research analysts have responded positively, with several firms raising their price targets for Northern Trust. Evercore ISI recently increased its price objective 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 reiterated a “buy” rating. Wells Fargo & Company adjusted its price target from $127.00 to $131.00, assigning an “equal weight” rating. Overall, five analysts rate Northern Trust as a “buy,” nine as “hold,” and three as “sell,” leading to an average price target of $132.46.

The company’s recent performance has also drawn attention. On October 22, 2023, Northern Trust reported earnings of $2.29 per share for the quarter, exceeding analysts’ expectations of $2.26. The firm generated $2.03 billion in revenue, slightly above the forecast of $2.02 billion, showcasing a 2.8% increase in revenue year-over-year.

Insider Activity and Stock Performance

In related news, insider transactions have also occurred at Northern Trust. Director Robert Edward Jr. Moritz purchased 3,891 shares at an average price of $128.57, totaling approximately $500,266. This purchase significantly increased his holdings by 139.21%, with a total value now at $859,619.

On the other hand, Executive Vice President Susan Cohen Levy sold 27,591 shares at an average price of $128.13, amounting to about $3.54 million. After this sale, she retains 48,257 shares valued at approximately $6.18 million, representing a 36.38% decrease in her ownership.

Northern Trust shares opened at $128.91 on November 3, 2023. The company boasts a market capitalization of $24.38 billion and has shown resilience with a price-to-earnings ratio of 15.02 and a debt-to-equity ratio of 0.58. The stock has fluctuated between a low of $81.62 and a high of $135.48 over the past twelve months.

Additionally, Northern Trust has announced a quarterly dividend of $0.80 per share, to be paid on January 1, 2024. Shareholders of record on December 5, 2023 will receive this dividend, which translates to an annualized yield of 2.5% and a payout ratio of 37.30%.

As a financial holding company, Northern Trust Corporation offers a range of services, including wealth management, asset servicing, and banking solutions for various clients worldwide. The firm operates through two segments: Asset Servicing and Wealth Management, underscoring its diverse capabilities in the financial sector.