Demystifying Northern Trust: Insights From 9 Analyst Reviews

In the preceding three months, 9 analysts have released ratings for Northern Trust NTRS, presenting a wide array of perspectives from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $115.0, with a high estimate of $127.00 and a low estimate of $102.00. Marking an increase of 7.23%, the current average surpasses the previous average price target of $107.25.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Northern Trust. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Northern Trust. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Northern Trust compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Northern Trust's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Northern Trust's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Northern Trust analyst ratings.

Delving into Northern Trust's Background

Northern Trust is a leading provider of wealth management, asset servicing, asset management, and banking to corporations, institutions, affluent families, and individuals. Founded in Chicago in 1889, Northern Trust has offices in 20 states and Washington, D.C. as well as 23 locations in Canada, Europe, the Middle East, and Asia-Pacific. As of September 2024, Northern Trust had assets under custody or administration of $17.4 trillion and assets under management of $1.6 trillion.

Key Indicators: Northern Trust's Financial Health

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Over the 3 months period, Northern Trust showcased positive performance, achieving a revenue growth rate of 14.02% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Northern Trust's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of 22.61%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Northern Trust's ROE excels beyond industry benchmarks, reaching 3.77%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Northern Trust's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 0.28%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: Northern Trust's debt-to-equity ratio is below the industry average at 1.16, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.