Why Northern Trust Shares Are Diving Today
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 16 2024
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Should l Buy NTRS?
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Analyst Views on NTRS
Wall Street analysts forecast NTRS stock price to fall
11 Analyst Rating
2 Buy
8 Hold
1 Sell
Hold
Current: 156.070
Low
97.50
Averages
108.65
High
128.00
Current: 156.070
Low
97.50
Averages
108.65
High
128.00
About NTRS
Northern Trust Corporation is a provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. The Company’s segments include Asset Servicing and Wealth Management. Asset Servicing is a global provider of asset servicing and related services to corporate and public retirement funds, foundations, endowments, fund managers, insurance companies, sovereign wealth funds, and other institutional investors around the globe. Asset servicing and related services encompass a full range of capabilities, including custody, fund administration, investment operations outsourcing, investment management, investment risk and analytical services, securities lending, and others. Wealth Management provides trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; family business consulting; family financial education; brokerage services; and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Northern Trust Partners with Digital Asset for Custody Development
- Custody Capability Enhancement: Northern Trust has entered into an agreement with Digital Asset Holdings to develop custody capabilities for tokenized financial assets, which will advance its digital asset strategy and enhance its competitiveness in a rapidly evolving market.
- Canton Network Integration: By integrating with the Canton Network's infrastructure, Northern Trust will develop applications that bridge digital and traditional markets, expected to provide more efficient asset servicing workflows for institutional clients, addressing growing market demands.
- Alignment with Market Standards: Northern Trust's digital assets platform will support custody and asset servicing for tokenized assets issued or transacted on the Canton Network, ensuring its services align with market standards and regulatory expectations, thereby enhancing client trust.
- Global Financial Infrastructure Integration: The Canton Network, designed specifically for institutional finance, will facilitate the seamless extension of traditional asset servicing models into digital market infrastructure, promoting the digitization of the asset lifecycle and improving market efficiency.
See More
IRS Layoffs of 6,700 Employees Strain Tax Collection Resources
- Layoff Impact: The IRS's plan to lay off 6,700 employees could strain tax collection resources during the critical tax-filing season, potentially affecting government revenue and budget balance.
- Tax Policy Changes: The 2025 tax bill raises the estate tax exemption to $15 million, prompting wealthy investors to focus on minimizing capital gains taxes, reflecting a strong demand for tax planning amid robust market growth.
- Charitable Giving Strategies: The new tax law limits tax benefits for high earners' charitable donations, leading clients to accelerate their giving and adopt a 'bunching' strategy to maximize tax efficiency, demonstrating adaptability to changing tax policies.
- Opportunity Zone Investments: The new tax law makes the qualified opportunity zone program permanent, allowing investors to defer capital gains taxes, although investors remain cautious about the potential returns from new opportunity zones, indicating a complex market response to tax incentives.
See More
Market Strategies Ahead of CPI Report
- Inflation Expectations: According to Art Hogan, Chief Market Strategist at B. Riley Wealth, the market is keenly awaiting the upcoming CPI report, which could significantly influence monetary policy despite the Core PCE remaining above the Fed's target.
- Energy Investment Opportunities: Eric Freedman, CIO of Northern Trust, highlights the energy sector's potential, with the S&P 500 energy sector surging approximately 30% in 2026 due to rising oil prices driven by the Iran conflict, indicating strong investment prospects amid persistent inflation.
- Tech Sector Caution: Wedbush analyst Dan Ives notes that tech investors are adopting a wait-and-see approach ahead of the CPI report, while expressing optimism about cybersecurity investments, anticipating significant budget increases in this area due to AI advancements.
- Income-Focused Strategy: Kevin Simpson from Capital Wealth Planning advises clients to prioritize high-quality companies with strong free cash flow and pricing power to navigate potential market volatility, recommending his Amplify CWP Enhanced Dividend Income ETF (DIVO) for stability.
See More
Northern Trust Expands Global Philanthropic Investment
- Philanthropic Investment Scale: In 2025, Northern Trust achieved $16 million in global charitable contributions, with employees dedicating a record 121,000 hours to support over 2,000 nonprofit organizations, demonstrating the company's strong commitment to social responsibility.
- Community Impact: The firm provided over 11 million meals, funded nearly 670,000 safe shelter nights, supported over 27,000 students, and delivered healthcare services to over 218,000 individuals, showcasing significant community impact across four critical areas: food security, housing, education, and healthcare.
- Global Partnerships: Northern Trust has established long-term partnerships with nonprofits such as Food Rescue US in the U.S., Whitechapel Mission in the U.K., and Our Big Kitchen in Australia, advancing food rescue efforts and community support on a global scale.
- Long-term Value Creation: Chief Social Impact Officer Shana Hayes emphasized that after 136 years, the company is dedicated to creating lasting social impact through collaboration with nonprofit partners, enhancing long-term value for all stakeholders.
See More
BMO Capital Markets Upgrades Northern Trust Rating
- Wealth Management Growth: Northern Trust's wealth management division boasts a pretax margin of approximately 38%, significantly higher than the 24% from asset servicing, as it drives growth through Family Office Solutions targeting clients with $100M to $750M, showcasing the firm's competitive edge in the high-end market.
- Productivity Enhancement Plans: The bank has shifted to expense planning based on key productivity indicators, entering the payback phase after investing around $3 billion in technology over three years, with 2026 guidance indicating less than 5% expense growth while fee growth remains in the low to mid-single digits, suggesting sustained operating leverage.
- Capital Return Flexibility: Northern Trust's CET1 ratio stands at 12.6%, well above the 7.0% regulatory minimum, providing greater flexibility for elevated capital returns, with analysts expecting a pivot towards buybacks and selective wealth management tuck-ins, reflecting disciplined capital allocation.
- Positive Market Reaction: Following the analysts' upgrade, Northern Trust's stock rose 0.4% in Monday morning trading, indicating market optimism regarding its future growth prospects.
See More
Major Wall Street Rating Changes on Monday
- Jefferies Upgrades Boot Barn: Jefferies upgraded Boot Barn from hold to buy, citing robust demand and a reset valuation from approximately 24x to 16x, indicating a more attractive investment opportunity in the current market environment.
- KBW Initiates Coverage on Sezzle: KBW initiated coverage on Sezzle with an outperform rating and a 12-month price target of $85, implying a 33% potential upside, reflecting the company's underappreciated profitable growth in the buy-now pay-later sector.
- Morgan Stanley Names Seagate a Top Pick: Morgan Stanley identified Seagate as an
See More
Northern Trust Partners with Digital Asset for Custody Development
- Custody Capability Enhancement: Northern Trust has entered into an agreement with Digital Asset Holdings to develop custody capabilities for tokenized financial assets, which will advance its digital asset strategy and enhance its competitiveness in a rapidly evolving market.
- Canton Network Integration: By integrating with the Canton Network's infrastructure, Northern Trust will develop applications that bridge digital and traditional markets, expected to provide more efficient asset servicing workflows for institutional clients, addressing growing market demands.
- Alignment with Market Standards: Northern Trust's digital assets platform will support custody and asset servicing for tokenized assets issued or transacted on the Canton Network, ensuring its services align with market standards and regulatory expectations, thereby enhancing client trust.
- Global Financial Infrastructure Integration: The Canton Network, designed specifically for institutional finance, will facilitate the seamless extension of traditional asset servicing models into digital market infrastructure, promoting the digitization of the asset lifecycle and improving market efficiency.
See More
IRS Layoffs of 6,700 Employees Strain Tax Collection Resources
- Layoff Impact: The IRS's plan to lay off 6,700 employees could strain tax collection resources during the critical tax-filing season, potentially affecting government revenue and budget balance.
- Tax Policy Changes: The 2025 tax bill raises the estate tax exemption to $15 million, prompting wealthy investors to focus on minimizing capital gains taxes, reflecting a strong demand for tax planning amid robust market growth.
- Charitable Giving Strategies: The new tax law limits tax benefits for high earners' charitable donations, leading clients to accelerate their giving and adopt a 'bunching' strategy to maximize tax efficiency, demonstrating adaptability to changing tax policies.
- Opportunity Zone Investments: The new tax law makes the qualified opportunity zone program permanent, allowing investors to defer capital gains taxes, although investors remain cautious about the potential returns from new opportunity zones, indicating a complex market response to tax incentives.
See More
Market Strategies Ahead of CPI Report
- Inflation Expectations: According to Art Hogan, Chief Market Strategist at B. Riley Wealth, the market is keenly awaiting the upcoming CPI report, which could significantly influence monetary policy despite the Core PCE remaining above the Fed's target.
- Energy Investment Opportunities: Eric Freedman, CIO of Northern Trust, highlights the energy sector's potential, with the S&P 500 energy sector surging approximately 30% in 2026 due to rising oil prices driven by the Iran conflict, indicating strong investment prospects amid persistent inflation.
- Tech Sector Caution: Wedbush analyst Dan Ives notes that tech investors are adopting a wait-and-see approach ahead of the CPI report, while expressing optimism about cybersecurity investments, anticipating significant budget increases in this area due to AI advancements.
- Income-Focused Strategy: Kevin Simpson from Capital Wealth Planning advises clients to prioritize high-quality companies with strong free cash flow and pricing power to navigate potential market volatility, recommending his Amplify CWP Enhanced Dividend Income ETF (DIVO) for stability.
See More
Northern Trust Expands Global Philanthropic Investment
- Philanthropic Investment Scale: In 2025, Northern Trust achieved $16 million in global charitable contributions, with employees dedicating a record 121,000 hours to support over 2,000 nonprofit organizations, demonstrating the company's strong commitment to social responsibility.
- Community Impact: The firm provided over 11 million meals, funded nearly 670,000 safe shelter nights, supported over 27,000 students, and delivered healthcare services to over 218,000 individuals, showcasing significant community impact across four critical areas: food security, housing, education, and healthcare.
- Global Partnerships: Northern Trust has established long-term partnerships with nonprofits such as Food Rescue US in the U.S., Whitechapel Mission in the U.K., and Our Big Kitchen in Australia, advancing food rescue efforts and community support on a global scale.
- Long-term Value Creation: Chief Social Impact Officer Shana Hayes emphasized that after 136 years, the company is dedicated to creating lasting social impact through collaboration with nonprofit partners, enhancing long-term value for all stakeholders.
See More
BMO Capital Markets Upgrades Northern Trust Rating
- Wealth Management Growth: Northern Trust's wealth management division boasts a pretax margin of approximately 38%, significantly higher than the 24% from asset servicing, as it drives growth through Family Office Solutions targeting clients with $100M to $750M, showcasing the firm's competitive edge in the high-end market.
- Productivity Enhancement Plans: The bank has shifted to expense planning based on key productivity indicators, entering the payback phase after investing around $3 billion in technology over three years, with 2026 guidance indicating less than 5% expense growth while fee growth remains in the low to mid-single digits, suggesting sustained operating leverage.
- Capital Return Flexibility: Northern Trust's CET1 ratio stands at 12.6%, well above the 7.0% regulatory minimum, providing greater flexibility for elevated capital returns, with analysts expecting a pivot towards buybacks and selective wealth management tuck-ins, reflecting disciplined capital allocation.
- Positive Market Reaction: Following the analysts' upgrade, Northern Trust's stock rose 0.4% in Monday morning trading, indicating market optimism regarding its future growth prospects.
See More
Major Wall Street Rating Changes on Monday
- Jefferies Upgrades Boot Barn: Jefferies upgraded Boot Barn from hold to buy, citing robust demand and a reset valuation from approximately 24x to 16x, indicating a more attractive investment opportunity in the current market environment.
- KBW Initiates Coverage on Sezzle: KBW initiated coverage on Sezzle with an outperform rating and a 12-month price target of $85, implying a 33% potential upside, reflecting the company's underappreciated profitable growth in the buy-now pay-later sector.
- Morgan Stanley Names Seagate a Top Pick: Morgan Stanley identified Seagate as an
See More
