Stock of the Day

July 27, 2020

Northern Trust (NTRS)

$184.68
-$3.84 (-2.0%)
Market Cap: $34.89B

About Northern Trust

Northern Trust Corporation, a financial holding company, provides wealth management, asset servicing, asset management, and banking solutions for corporations, institutions, families, and individuals worldwide. It operates in two segments, Asset Servicing and Wealth Management. The Asset Servicing segment offers asset servicing and related services, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, employee benefit services, securities lending, foreign exchange, treasury management, brokerage services, transition management services, banking, and cash management services. This segment serves corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors. The Wealth Management segment offers trust, investment management, custody, and philanthropic; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and private and business banking services. This segment serves high-net-worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses. The company also provides asset management services, such as active and passive equity; active and passive fixed income; cash management; muti-asset and alternative asset classes comprising private equity and hedge funds of funds; and multi-manager advisory services and products through separately managed accounts, bank common and collective funds, registered investment companies, exchange traded funds, non-U.S. collective investment funds, and unregistered private investment funds. In addition, it offers overlay and other risk management services. Northern Trust Corporation was founded in 1889 and is headquartered in Chicago, Illinois.

Today's Trend

Northern Trust Corporation (NASDAQ: NTRS) has been edging higher as investors react to a mix of positive strategic and analyst-driven developments.

  • Bank of America raised its price target on Northern Trust to $200 from $190 and reiterated a buy rating, signaling stronger upside expectations for the stock.
  • Northern Trust announced it will provide administration, custody, and depositary services for Invesco’s new Irish-domiciled index-tracking mutual fund range, adding another client win that supports fee-based revenue growth.
  • The company agreed to sell its guardianship services business to Wintrust, a move investors may view as a strategic pivot toward higher-margin core wealth and asset management operations.
  • Broader financial stocks are performing well into second-quarter earnings season, which is helping support sentiment across the sector, including Northern Trust.
  • JPMorgan also lifted its price target on NTRS, but kept a neutral rating, suggesting limited near-term conviction despite the higher target.

Overall, Northern Trust (NTRS) appears to be benefiting from a favorable analyst backdrop and a clearer strategic focus, with the asset manager’s latest business wins and divestiture helping reinforce the stock’s recent strength.

← Previous Stock of the DayNext Stock of the Day →

Recent News