We consider Northern Trust very steady.
Northern Trust Corp has Sharpe Ratio of 0.0758, which conveys that the firm had 0.0758% of return per unit of risk over the last 3 months. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock-specific
technical indicators that cannot be
diversified away. We have found twenty-eight
technical indicators for Northern Trust, which you can use to evaluate the future volatility of the firm. Please verify Northern Trust Corp Mean Deviation of 1.25,
risk adjusted performance of 0.0607, and Downside Deviation of 1.56 to check out if the risk estimate we provide is consistent with the expected return of 0.11%.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Northern Trust income statement, its balance sheet, and the statement of cash flows. Potential Northern Trust investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Northern Trust investors may use each financial statement separately, they are all related. The changes in Northern Trust's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Northern Trust's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Northern Trust
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Northern Trust performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Northern Trust shares is the value that is considered the true value of the share. If
the intrinsic value of Northern is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Northern Trust. Please read more on our
fundamental analysis page.
How effective is Northern Trust in utilizing its assets?
Northern Trust reports assets on its Balance Sheet. It represents the amount of Northern resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Northern Trust aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Asset Management & Custody Banks space. To get a better handle on how balance sheet or income statements item affect Northern volatility, please check the breakdown of all its
fundamentals.
Are Northern Trust Earnings Expected to grow?
The
future earnings power of Northern Trust involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Northern Trust factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Northern Trust
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Northern
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Northern Trust earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Northern Trust dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Northern one year expected dividend income is about USD0.48 per share.
At this time, Northern Trust's
Dividend Yield is comparatively stable compared to the past year.
Dividend Payout Ratio is likely to gain to 0.63 in 2024, despite the fact that
Dividends Paid is likely to grow to (630.1
M).
Investing in stocks that pay
dividends, such as stock of Northern Trust, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Northern Trust must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Northern Trust. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Northern Trust Gross Profit
Northern Trust Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Northern Trust previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Northern Trust Gross Profit growth over the last 10 years. Please check Northern Trust's
gross profit and other
fundamental indicators for more details.
A Deeper Perspective
Many companies such as Northern Trust have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Northern is distributed among investors.
Ownership Allocation
Northern Trust Corp holds a total of 208.14 Million outstanding shares. The majority of Northern Trust
outstanding shares are owned by
institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in Northern Trust Corp to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in Northern Trust Corp. Please pay attention to any change in the institutional holdings of Northern Trust as this could imply that something significant has changed or about to change at the company. Note that regardless of who owns the company, if the true value of the entity is less than the market is willing to pay for it, you may not be able to generate positive returns over time.
| Retail Investors16.09% | | Institutions83.54% |
| Retail Investors | 16.09 |
| Insiders | 0.37 |
| Institutions | 83.54 |
Some Northern technical indicators suggest correction
Latest Treynor Ratio is up to 0.06. Price may fall again. Northern Trust Corp has relatively low volatility with skewness of -0.09 and kurtosis of 0.33. However, we advise all investors to independently investigate Northern Trust Corp to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Northern Trust's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Northern Trust's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.
Our Final Takeaway
While other companies under the asset management industry are still a bit expensive, Northern Trust may offer a potential longer-term growth to retail investors. The bottom line, as of the 19th of October 2021, we believe Northern Trust is currently
overvalued. It actively responds to the market and projects
below average probability of distress in the next two years. However, our primary 90 days advice on the enterprise is
Strong Buy.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Northern Trust. Please refer to our
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