Northern Trust Corporation (NASDAQ:NTRS) Vice Chairman Stephen L. Fradkin 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 for a total sale price 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. After these transactions, Fradkin’s direct ownership will be 46,078 shares, with additional ownership through various trusts and 401(k) accounts.
In other recent news, Northern Trust Corporation (NASDAQ:) announced solid financial results for Q3 2024, reporting net income of $465 million and earnings per share of $2.22 . The company’s assets under management (AUM) reached a record high of $444 billion, an increase of 20% year over year. In particular, trust fees in the wealth management field increased by 9%, contributing to solid performance.
Analysts at RBC Capital Markets, Evercore ISI, and BofA Securities responded to these developments by positively adjusting their outlooks. RBC Capital Markets raised Northern Trust’s price target to $107 and reaffirmed its Outperform rating, while Evercore ISI raised its price target to $103 and maintained its Inline rating. BofA Securities also raised its price target to $115 based on the strong results.
As a result of these recent developments, Northern Trust has returned $453 million to shareholders through dividends and share buybacks. BofA Securities and Evercore ISI have revised their earnings per share estimates for Northern Trust to $1.92 and $7.58 for the fourth quarter of 2024 and full year 2025, respectively, reflecting the company’s strong performance. Despite facing the challenge of persistent expense issues, Northern Trust’s management team is proactively working to limit expense growth and is making operational efficiencies and strategic investments for future growth. It shows our commitment to
Investment Pro Insights
Northern Trust Corporation (NASDAQ:NTRS) has shown strong performance lately, which is consistent with the insider activity we’ve observed. According to InvestingPro data, the company’s stock has returned an impressive 66.95% in total price over the past year, and 13.6% in the last month alone. This positive momentum is further supported by the fact that NTRS is trading close to 98.15% of its 52-week high.
The company’s financial health looks solid, with a market capitalization of $20.33 billion and a P/E ratio of 12.8, but it’s relatively low compared to its earnings growth potential. This is highlighted in one of InvestingPro’s tips, which notes that NTRS “trades at a low P/E relative to its short-term earnings growth.”
For income-oriented investors, it’s worth noting that Northern Trust has maintained its dividend for 54 consecutive years, demonstrating a strong commitment to shareholder returns. The current dividend yield is 2.93%, which could be attractive in the current market environment.
Analysts appear to be optimistic about Northern Trust’s prospects, with eight analysts raising their earnings estimates for next fiscal year. This positive sentiment is reflected in the company’s profitability, as another InvestingPro tip shows that NTRS has been profitable for the past 12 months.
For readers interested in a more comprehensive analysis, InvestingPro offers 11 additional tips on Northern Trust Corporation that dig deeper into the company’s financial health and market position.
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