Steven L. Fradkin, Vice Chairman of Northern Trust Corp (NASDAQ:NTRS), recently executed a series of stock transactions involving the company's common stock. On October 25, Fradkin sold a total of 27,874 shares in two separate transactions, fetching a total of approximately $2.8 million. The shares were sold at prices ranging from $100.50 to $100.52 per share.
In addition to these sales, Fradkin exercised options to acquire 27,874 shares at a price of $88.06 per share, valued at approximately $2.45 million. Following these transactions, Fradkin's direct ownership stands at 46,078 shares, with additional holdings through various trusts and a 401(k) account.
In other recent news, Northern Trust Corporation (NASDAQ:NTRS) has emerged with a solid financial performance in its third quarter of 2024, reporting net income of $465 million and earnings per share of $2.22. The company's assets under management (AUM) reached a record $444 billion, marking a 20% year-over-year increase. Trust fees, particularly in Wealth Management, saw a 9% increase, contributing to the robust results.
Analysts from RBC (TSX:RY) Capital Markets, Evercore ISI, and BofA Securities have responded to these developments with positive adjustments to their outlooks. RBC Capital Markets raised its price target for Northern Trust to $107 and reaffirmed an Outperform rating, while Evercore ISI increased its price target to $103, maintaining an In-Line rating. BofA Securities also increased its price target to $115, based on the strong earnings performance.
These recent developments have led Northern Trust to return $453 million to shareholders through dividends and stock repurchases. BofA Securities and Evercore ISI have revised their earnings per share 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. Despite facing challenges with persistent expense issues, Northern Trust's management is actively working to reduce expense growth, demonstrating its commitment to operational efficiency and strategic investments for future growth.
InvestingPro Insights
Northern Trust Corp (NASDAQ:NTRS) has been showing strong performance recently, which aligns with the insider activity we've observed. According to InvestingPro data, the company's stock has seen impressive returns, with a 66.95% price total return over the past year and a 13.6% return in the last month alone. This positive momentum is further supported by the fact that NTRS is trading near its 52-week high, at 98.15% of that peak.
The company's financial health appears robust, with a market capitalization of $20.33 billion and a P/E ratio of 12.8, which is relatively low compared to its earnings growth potential. This is highlighted by one of the InvestingPro Tips, which notes that NTRS is "Trading at a low P/E ratio relative to near-term earnings growth."
For income-focused investors, it's worth noting that Northern Trust has maintained dividend payments for 54 consecutive years, demonstrating a strong commitment to shareholder returns. The current dividend yield stands at 2.93%, which could be attractive in the current market environment.
Analysts seem optimistic about Northern Trust's prospects, with 8 analysts revising their earnings upwards for the upcoming period. This positive sentiment is reflected in the company's profitability, as another InvestingPro Tip indicates that NTRS has been profitable over the last twelve months.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips for Northern Trust Corp, providing a deeper dive into the company's financial health and market position.
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