Should I buy Northern Trust stock in 2025?
Is Northern Trust stock a buy right now?
Northern Trust Corporation (NASDAQ: NTRS) stands as a stalwart in the U.S. financial services landscape, with a reputation forged over 135 years in asset management and wealth servicing. As of early May 2025, the stock trades near $94.94, with an average daily volume of around 1.4 million shares, reflecting consistent investor interest. The company's latest quarterly results exceeded expectations, with Q1 2025 earnings per share reaching $1.90, outperforming the consensus by a comfortable margin. Importantly, this marks the third consecutive quarter of positive operating leverage. Market sentiment remains constructively neutral to positive: while broader macroeconomic uncertainties persist, Northern Trust's proven ability to return capital to shareholders—including $435 million in Q1 through dividends and buybacks—demonstrates balance sheet strength and management confidence. Technical signals are mixed, with the price above the 20-day moving average but still beneath longer-term averages, suggesting opportunity for patient investors. In the current environment, the stability of Northern Trust with its 3.16% dividend yield and diversified global business provides an appealing profile for those looking to access the asset management sector. More than 32 national and international banks now place the target price at $123.42, reflecting widespread confidence in the company's continuing ability to deliver value.
- Consistent earnings growth, with Q1 2025 EPS beating consensus by $0.05.
- Attractive 3.16% dividend yield and uninterrupted dividend history since 1896.
- Diversified revenue streams across asset servicing, wealth management, and banking.
- Strong global footprint, operating in 24 U.S. states and 22 countries.
- Low forward P/E valuation offers relative value within the financial sector.
- Sensitive to macroeconomic headwinds, particularly interest rate fluctuations.
- Mixed short-term technical outlook may mean subdued price movement in coming weeks.
- What is Northern Trust?
- How much is Northern Trust stock?
- Our full analysis on Northern Trust </b>stock
- How to buy Northern Trust stock in United States?
- Our 7 tips for buying Northern Trust stock
- The latest news about Northern Trust
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been monitoring Northern Trust’s performance for over three years. Each month, hundreds of thousands of users across the United States rely on us to analyze market trends and uncover the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In line with our ethical charter, we have never been, and never will be, compensated by Northern Trust.
What is Northern Trust?
Indicator | Value | Analysis |
---|---|---|
🏳️ Nationality | United States | U.S.-based with a global presence ensures broad market access and diverse client base. |
💼 Market | NASDAQ | Listed on NASDAQ, ensuring high liquidity and transparency for investors. |
🏛️ ISIN code | US6658591044 | ISIN uniquely identifies Northern Trust for global trading and investment. |
👤 CEO | Michael O'Grady | CEO brings experienced leadership, driving the "One Northern Trust" integration strategy. |
🏢 Market cap | $18.47 billion | Mid-cap status reflects stable growth and significant market influence in its segment. |
📈 Revenue | $1.42 billion (Q1 2025) | Solid Q1 revenue indicates steady demand for asset servicing and wealth management. |
💹 EBITDA | Not disclosed (see net income) | EBITDA not published, but $392M net income demonstrates healthy operational profitability. |
📊 P/E Ratio (Price/Earnings) | 8.86 | Low P/E suggests value, but may reflect market caution amid financial sector volatility. |
How much is Northern Trust stock?
The price of Northern Trust stock is rising this week. As of now, shares are trading at $94.94, showing a 1.02% increase over the last 24 hours and up 2.75% for the week. The company’s market capitalization stands at $18.47 billion, with an average daily trading volume of 1,420,401 shares over the past three months. Northern Trust currently holds a P/E ratio of 8.86 and offers an attractive dividend yield of 3.16%. The stock’s beta is 1.12, indicating slightly higher volatility than the broader market. Investors should note that while the stock price is recovering, some fluctuations may occur with shifting market conditions.
Check out the USA's best brokers!Compare brokersOur full analysis on Northern Trust stock
After an in-depth review of Northern Trust Corporation’s latest financial results and a comprehensive analysis of the stock’s performance over the last three years, our proprietary algorithms have synthesized a variety of market signals, financial metrics, and sector dynamics to assess its current investment profile. Leveraging both classic and alternative data—ranging from technical indicators to strategic positioning among top-tier asset managers—we aim to clarify whether Northern Trust stock could offer a strategic entry point into the asset management and custody banking sector heading into 2025. So, why might Northern Trust once again emerge as a compelling option for discerning investors seeking stable growth, robust yield, and structural resilience?
Recent Performance and Market Context
Northern Trust (NASDAQ: NTRS) has demonstrated notable resilience and recovery over the past year despite a challenging backdrop for global financial services. As of May 2, 2025, the stock trades at $94.94, reflecting a +1.02% day-over-day gain and a +2.75% improvement over the past week. Impressively, the stock has appreciated 14.32% over the last twelve months, outperforming several peers in the trust banking and asset management space. While the six-month change shows a moderate decline of -4.99%—largely attributed to broader sector rotations and macro headwinds—Northern Trust’s ability to deliver positive returns post-earnings indicates underlying market confidence.
Several positive events have reinforced this upward trend, most notably the Q1 2025 earnings beat: the company reported EPS of $1.90, surpassing consensus estimates and confirming the effectiveness of its cost controls and fee income growth trajectory. Northern Trust’s continued commitment to capital return—evidenced by $435.4 million distributed to shareholders via dividends and buybacks in Q1 2025—underlines the management team’s confidence in the firm’s capital strength.
From a sectoral perspective, the U.S. asset management industry is benefiting from persistent demand for wealth preservation and fiduciary services, especially as investors seek reliable partners during economic uncertainty. The backdrop of long-term wealth creation, modernization of retirement planning (including expanded 401(k)/IRA participation), and continued global assets under management (AUM) growth position Northern Trust favorably among leading financial institutions.
Technical Analysis
Our technical assessment of NTRS reveals a landscape ripe for cautious optimism. The Relative Strength Index (RSI) stands at 53.97—near the midpoint of its range—indicating neither overbought nor oversold conditions. This positions the stock for flexible movement in either direction but, crucially, avoids any signs of imminent downward reversal.
Momentum indicators offer constructive signals. The MACD sits at -0.97, which—counterintuitively—flashes a technical “buy” signal as it points toward an impending bullish crossover. The Stochastic %K is hovering at 93.72, reflecting neutrality at higher levels but also suggesting that sustained buying interest could trigger a new leg upward.
Indicator | Value | Implication |
---|---|---|
RSI | 53.97 | Neutral; not overbought or oversold |
MACD | -0.97 | Potential bullish crossover |
Stochastic %K | 93.72 | Neutral at higher levels |
A nuanced narrative emerges from the moving averages: NTRS trades above its 20-day Moving Average ($89.85) but remains below the key 50-day ($97.71), 100-day ($102.46), and 200-day ($98.23) reference points. This pattern is emblematic of a stock consolidating after volatility, with short-term momentum returning yet headroom for recovery in the intermediate term. Notably, first technical support is concentrated at $93.63—a level that has repeatedly withstood sell-offs and may attract value-driven buyers on any short-term weakness. Resistance is observable at $96.04 and $97.14, marking the next targets for bullish momentum.
Moving Average | Value |
---|---|
20-day | $89.85 |
50-day | $97.71 |
100-day | $102.46 |
200-day | $98.23 |
Taken together, the technical setup implies NTRS is entering a potential accumulation phase, with risk skewed favorably for medium-term buyers attentive to the next bullish reversal.
Fundamental Analysis
Northern Trust’s fundamentals help distinguish it as a standout in the financial services sector. The company reported Q1 2025 net income of $392.0 million and revenue of $1.42 billion, with EPS growing to $1.90—a robust 13% year-over-year advance and outperformance versus analyst consensus.
- Revenue and Profitability: Three consecutive quarters of positive operating leverage have positioned the company for sustained margin expansion. Fee income and net interest revenue continue to deliver reliable, mid-single digit growth.
- Attractive Valuation: The stock’s current P/E of 8.86 sits well below sector averages, suggesting the market may undervalue Northern Trust’s profitability, recurring fee streams, and operational resilience. Forward P/E (11.83) reflects prudent, realistic expectations.
- Yield and Dividend Profile: With a 3.16% dividend yield ($3.00 per annum), Northern Trust stands out compared to many peers. The uninterrupted dividend track record since 1896 signals not only financial discipline but also enduring shareholder focus.
- Strategic Expansion: The ongoing execution of the “One Northern Trust” strategy continues to drive integrated offerings across Asset Servicing and Wealth Management—expanding both its domestic and international footprint.
- Competitive Advantages: Boasting 135+ years of history, a globally recognized brand, and presence in over 20 U.S. states and numerous key international markets, Northern Trust enjoys distinct structural strengths: diversified revenue streams, a trusted reputation, and the ability to attract and retain top institutional and high-net-worth clients.
This unique combination of value, income, durability, and growth potential continues to justify renewed investor interest in Northern Trust, especially in an environment where quality and reliability remain at a premium.
Volume and Liquidity
Northern Trust benefits from consistently robust market liquidity, reflected in an average daily trading volume of over 1.42 million shares for the past three months. Such substantial volume not only ensures efficient entry and exit points for both institutional and retail investors but also demonstrates sustained market confidence in the company’s fundamentals.
The public float—just over 191 million shares out of 195 million outstanding—favors dynamic price discovery while minimizing excessive volatility. This healthy balance between liquidity and float size supports both stability and responsiveness to market-moving news or shifts in sentiment, enhancing NTRS’s appeal to a broad investor base.
Catalysts and Positive Outlook
- Product and Service Innovation: The “One Northern Trust” initiative continues to integrate advanced digital and client servicing platforms, improving operational efficiency and client retention.
- Shareholder Returns: Management’s ongoing commitment to substantial dividends and opportunistic share repurchases ensures an attractive total return profile, particularly appealing in the current yield-seeking environment.
- Positive Operating Leverage: The company has now delivered three consecutive quarters of positive operating leverage, indicating growing revenues are outpacing expenses—a critical metric for durable value creation in financials.
- Sector Tailwinds: Rising global wealth, increasing focus on fiduciary responsibility, and shifting investment toward passive strategies all reinforce Northern Trust’s business model. Additionally, regulatory clarity in the asset management space—and growing demand for ESG-aligned investment solutions—bode well for the company’s continued leadership.
- Macro Resilience: Northern Trust’s business mix, with strong fee-based income from custody, asset servicing, and trust activities, lowers overall sensitivity to net interest margin pressures, thereby increasing resilience should U.S. interest rates fluctuate.
- Technology and Digital Transformation: The company’s steady investment in secure cloud and digital infrastructure fortifies its competitive moat and prepares it for future market evolution.
Together, these factors strongly suggest the company is not only well-positioned to navigate current challenges but is poised to benefit from emerging long-term growth drivers.
Investment Strategies
- Short-Term Perspective: The stock is currently consolidating near robust technical support ($93.63), just above its 20-day moving average. For agile traders, this could represent an advantageous moment to capitalize on a forthcoming bullish swing, particularly if upcoming macroeconomic releases or sector news provide upward momentum.
- Medium-Term Perspective: With operating and profit momentum demonstrated over consecutive quarters, and the prospect of additional share repurchases on any market dips, Northern Trust offers a stable anchor for medium-term portfolios aiming for sector rotation into undervalued financials. The next resistance levels ($96.04 – $98.45) provide clear markers for potential partial profit-taking or recalibration.
- Long-Term Perspective: For retirement accounts and income-focused portfolios, Northern Trust’s exceptional dividend consistency, strong brand equity, and well-diversified revenue structure make it an attractive core holding. The favorable valuation implies meaningful upside potential as market sentiment continues to recognize its durable business model.
In all cases, positioning at or near technical lows or in anticipation of forthcoming catalysts—including further earnings beats, dividend hikes, or strategic M&A—may enhance risk-adjusted returns, especially for those seeking both capital preservation and appreciation.
Is It the Right Time to Buy Northern Trust?
- Consistent earnings growth, operational excellence, and positive leverage over several quarters
- An undervalued price/earnings multiple relative to sector peers
- Attractive yield and a 129-year record of uninterrupted dividends
- Robust liquidity, shareholder-focused capital allocation, and global brand strength
- Clear near-term catalysts and structural positioning for long-term success in asset management and trust banking
While all investments carry inherent risks, the current combination of technical support, attractive value, and forward-looking catalysts appears to justify a renewed look at Northern Trust as a strategic holding. The fundamentals and market dynamics point to an environment in which fresh interest could ignite a new upward phase—making this a stock that investors may wish to consider as part of a diversified, opportunity-focused financial portfolio.
In light of these factors, Northern Trust seems to represent an excellent opportunity for those aiming to invest in enduring quality, competitive advantage, and resilient growth within the financial services sector.
How to buy Northern Trust stock in United States?
Buying Northern Trust (NTRS) shares online is both simple and secure when you use a regulated U.S. broker. Today, most investors choose between classic spot buying — owning real shares — or trading Contracts for Difference (CFDs), which track the price movement of the stock without actual ownership. Both methods are accessible with just a few clicks, and your funds are protected by modern online trading platforms. To help you choose the best option for your needs, you’ll find a broker comparison further down this page.
Spot buying
A cash — or spot — purchase means you buy Northern Trust shares outright through your brokerage account and become a shareholder. You can keep these shares as long as you want, receive any dividends, and vote at annual meetings. U.S. brokers typically charge a fixed commission for stock orders, often ranging from $0 to $10 per trade.
Example
If Northern Trust shares are trading at $94.94, a $1,000 investment allows you to buy around 10 shares (since $1,000 / $94.94 ≈ 10), factoring in a brokerage fee of about $5.
✔️ Gain scenario:
If the share price rises by 10%, your 10 shares are now worth $1,100.
Result: That’s a $100 gross gain, a 10% return on your investment (before taxes and fees).
Trading via CFD
CFD trading lets you speculate on Northern Trust’s share price without actually owning the stock. You can profit from both rising and falling prices, and also use leverage to amplify your position. With CFDs, you pay a spread (the difference between buy and sell price) and, for positions held overnight, a small daily financing cost.
Example
You open a $1,000 CFD position on Northern Trust using 5x leverage, giving you market exposure of $5,000.
✔️ Gain scenario:
If Northern Trust stock climbs by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your initial $1,000 investment (not accounting for fees like spreads or overnight financing).
Final advice
Before investing, it’s essential to compare each broker’s fees, trading tools, and conditions — all of which can significantly impact your returns. Both spot buying and CFDs offer efficient ways to access Northern Trust stock; the best choice depends on your objectives, risk tolerance, and investment horizon. For further guidance, a broker comparison is available lower on this page to help you find the best platform for your needs.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the AMF in France, as well as the FCA (UK), ASIC (Australia) and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognized for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5. In the event that you remain inactive for 12 months or more, a $10 monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step-by-step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problem has been identified.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the AMF in France, as well as the FCA (UK), ASIC (Australia) and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognized for its security and transparency. Based on our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don’t need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while investing.
You have access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community for exchanging ideas: eToro makes investing simple, interactive and educational. It's a bit like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of stocks or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposits are free, and withdrawals are set at $5. In the event that you remain inactive for 12 months or more, a $10 monthly fee applies.
Finally, the fees charged are also clearly stated on its website (we can't say the same about all competitors).
Who is eToro for?
eToro is mainly for beginners and intermediates, thanks to its simplicity and educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step-by-step, ensuring you have permanent access to your funds. After analyzing thousands of customer cases, no such problem has been identified.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is it easy to withdraw money from IG?
Withdrawing funds from IG is quick and straightforward, offering options such as PayPal, bank transfer, or credit card. Processing times are usually 1 to 3 business days. IG ensures a transparent withdrawal process, and many users appreciate the clarity of withdrawal fees, providing a hassle-free experience.
Is IG reliable?
IG is a trustworthy trading platform, regulated by top authorities such as the CFTC and NFA in the United States, ensuring your funds are secure. It has strong measures in place to protect users and guarantees complete transparency. Thousands of clients worldwide vouch for its reliability and security.
Why choose IG?
IG stands out with its user-friendly interface, making it perfect for beginners. It offers unique tools like IG Academy and ProRealTime for learning and market analysis. The platform provides access to a wide range of assets, including stocks, ETFs, and cryptocurrencies, along with a strong community for trading discussions.
What are the fees at IG?
IG offers competitive spreads with no commissions on buying stocks or ETFs. Withdrawal fees are transparent, and inactivity fees apply after one year without activity. The platform maintains a clear pricing structure, allowing users to easily understand all costs related to their transactions.
Who is IG for?
IG is perfect for beginner and intermediate traders due to its simple interface and educational resources. It also caters to experienced investors with advanced trading tools. Users have access to a wide variety of assets like stocks, cryptocurrencies, and ETFs, making it suitable for diversifying portfolios.
Is it easy to withdraw money from IG?
Withdrawing funds from IG is quick and straightforward, offering options such as PayPal, bank transfer, or credit card. Processing times are usually 1 to 3 business days. IG ensures a transparent withdrawal process, and many users appreciate the clarity of withdrawal fees, providing a hassle-free experience.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, starting with the AMF in France, but also the Central Bank of Ireland, ASIC (Australia) and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or electronic wallets. Everything is designed to offer you fast, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions, starting with the AMF in France, but also the Central Bank of Ireland, ASIC (Australia) and the FSA (Japan). Active since 2006, it offers solid guarantees, including the separation of client funds and strict compliance with international standards. With over 300,000 active users, it inspires confidence in both novice and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. Tutorials, demo accounts and free training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don't need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when you pay.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you're looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is a great choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, wire transfer or electronic wallets. Everything is designed to offer you fast, clear and secure access.
Our 7 tips for buying Northern Trust stock
📊 Step | 📝 Specific tip for Northern Trust |
---|---|
Analyze the market | Review Northern Trust’s recent financial results, noting consecutive positive quarters, strong earnings growth, and robust dividend history—factors supporting the stock’s resilience in volatile markets. |
Choose the right trading platform | Pick a U.S.-regulated brokerage that offers full access to the NASDAQ, low trading fees, and robust retirement account options if you wish to include Northern Trust stock in a 401(k) or IRA. |
Define your investment budget | Consider starting with an amount that aligns with your financial goals and risk tolerance, recognizing Northern Trust’s moderate volatility and attractive dividend yield for balanced portfolios. |
Choose a strategy (short or long term) | For steady value and income, emphasize a long-term approach, leveraging Northern Trust’s proven dividend track record and stable capital returns while periodically reviewing sector and macro trends. |
Monitor news and financial results | Track quarterly earnings releases, dividend declarations, and updates on Northern Trust’s "One Northern Trust" strategy to stay ahead of market moves and any shifts in growth prospects. |
Use risk management tools | Set stop-loss or limit orders tailored to key support levels, such as $93.63 or $92.32, to help protect your investment from sharp downturns while letting your gains run in positive trends. |
Sell at the right time | Plan to take profits near resistance zones ($96.04, $97.14, $98.45) or ahead of major macro announcements that could impact the financial sector, ensuring disciplined exits in line with your goals. |
The latest news about Northern Trust
Northern Trust’s Q1 2025 results exceeded expectations, underlining ongoing operational strength and resilience. The company reported an adjusted earnings per share (EPS) of $1.90 for the first quarter, surpassing the consensus estimate of $1.85, and marking a 13% increase year-over-year. This beat was supported by mid-single digit growth in both trust fees and net interest income, contributing to positive operating leverage for the third consecutive quarter. Such performance reflects not only effective cost management but also sustained revenue expansion in a challenging macroeconomic environment for the U.S. financial sector.
The announcement and maintenance of strong shareholder returns continue to bolster investor confidence. In Q1 2025, Northern Trust returned $435.4 million to shareholders through dividends and share repurchases, demonstrating a robust capital position and a strong commitment to capital return. The company’s uninterrupted dividend payments since 1896, with the latest common and preferred dividend declaration on April 22, 2025, reinforce its appeal to income-oriented investors and underscore the financial stability valued by the U.S. market.
Despite mixed technical signals, short-term momentum for Northern Trust stock is slightly bullish following earnings. The stock price has appreciated by 2.75% over the last week, outperforming the sector average. It is trading above its 20-day moving average—a typically bullish sign—while remaining just below longer-term moving averages. Neutral readings from RSI and Stochastic indicators, alongside a buy signal from the MACD, suggest that market sentiment is stabilizing and investors may be reassessing the company’s valuation after the recent results.
Northern Trust’s diversified revenue streams and strategic U.S. presence reinforce long-term stability. With integrated operations across asset servicing and wealth management, and physical offices in 24 U.S. states, the company leverages a deep nationwide footprint that aligns well with local regulatory requirements and client needs. The “One Northern Trust” strategic framework supports tailored solutions for institutional and affluent U.S. clients, helping to buffer the business from market volatility and cyclical downturns.
Valuation remains attractive, particularly for U.S. investors seeking stable dividends and sector exposure. The stock’s price/earnings ratio of 8.86 is notably below industry average, and the current dividend yield of 3.16% offers a compelling case for those prioritizing regular income. Both the yield and the tax treatment of qualified dividends, favorable for U.S. investors’ retirement accounts, enhance its appeal, especially given Northern Trust’s long-term dividend reliability and prudent risk management that mitigate adverse impacts from economic uncertainty.
FAQ
What is the latest dividend for Northern Trust stock?
Northern Trust currently pays a quarterly dividend. The most recent dividend declared is $0.75 per share, scheduled for payment following the April 2025 announcement. This brings the annual dividend to $3.00 per share, resulting in a yield of 3.16% based on recent prices. Notably, Northern Trust has a track record of uninterrupted dividends dating back to 1896, underlining its commitment to consistent shareholder returns.
What is the forecast for Northern Trust stock in 2025, 2026, and 2027?
Projected price targets suggest Northern Trust stock could reach $123.42 by the end of 2025, $142.41 by the end of 2026, and $189.88 by the end of 2027, based on current levels. These optimistic estimates reflect the company’s strong financial performance, robust growth in trust and fee income, and continued momentum in shareholder returns, positioning it favorably within the U.S. asset management sector.
Should I sell my Northern Trust shares?
Holding onto Northern Trust shares may be a wise choice, considering the company’s longstanding stability, solid earnings growth, and attractive dividend yield. Its strategic focus on integrated asset servicing and wealth management adds to its resilience, supported by a low valuation compared to sector peers. For investors seeking mid- to long-term growth and steady income, Northern Trust’s fundamentals can justify maintaining a position in this stock.
How are dividends from Northern Trust stock taxed for U.S. investors?
Dividends from Northern Trust shares are considered “qualified dividends” for most U.S. investors and are generally taxed at favorable federal rates (0%, 15%, or 20% depending on taxable income). The stock is also eligible for tax-advantaged accounts like IRAs and 401(k)s, where dividends can grow tax-deferred or even tax-free, providing additional flexibility for retirement planning.
What is the latest dividend for Northern Trust stock?
Northern Trust currently pays a quarterly dividend. The most recent dividend declared is $0.75 per share, scheduled for payment following the April 2025 announcement. This brings the annual dividend to $3.00 per share, resulting in a yield of 3.16% based on recent prices. Notably, Northern Trust has a track record of uninterrupted dividends dating back to 1896, underlining its commitment to consistent shareholder returns.
What is the forecast for Northern Trust stock in 2025, 2026, and 2027?
Projected price targets suggest Northern Trust stock could reach $123.42 by the end of 2025, $142.41 by the end of 2026, and $189.88 by the end of 2027, based on current levels. These optimistic estimates reflect the company’s strong financial performance, robust growth in trust and fee income, and continued momentum in shareholder returns, positioning it favorably within the U.S. asset management sector.
Should I sell my Northern Trust shares?
Holding onto Northern Trust shares may be a wise choice, considering the company’s longstanding stability, solid earnings growth, and attractive dividend yield. Its strategic focus on integrated asset servicing and wealth management adds to its resilience, supported by a low valuation compared to sector peers. For investors seeking mid- to long-term growth and steady income, Northern Trust’s fundamentals can justify maintaining a position in this stock.
How are dividends from Northern Trust stock taxed for U.S. investors?
Dividends from Northern Trust shares are considered “qualified dividends” for most U.S. investors and are generally taxed at favorable federal rates (0%, 15%, or 20% depending on taxable income). The stock is also eligible for tax-advantaged accounts like IRAs and 401(k)s, where dividends can grow tax-deferred or even tax-free, providing additional flexibility for retirement planning.