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Northern Trust Corporation (NTRS) Rose on Strong Earnings and a Merger Rumor

Northern Trust Corporation (NTRS) Rose on Strong Earnings and a Merger Rumor

Yahoo21-07-2025
Ariel Investments, an investment management company, released its 'Ariel Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The second quarter was a volatile period. Stocks fell sharply in early April following the 'Liberation Day' tariff announcement, pushing the market close to bear market territory. Later, the pause in plans led to a strong recovery. Excitement for artificial intelligence (AI) stocks reignited, with positive economic data and strong corporate earnings driving U.S. indices to new all-time highs. Growth stocks outperformed value stocks, and large caps continued to outperform their small-cap counterparts. Against this backdrop, Ariel Fund returned 6.96% in the quarter, lagging behind both the Russell 2500 Value Index's +7.29% return and exceeding the Russell 2000 Value Index's +4.97% gain. For more information on the fund's top picks in 2025, please check its top five holdings.
In its second quarter 2025 investor letter, Ariel Fund highlighted stocks such as Northern Trust Corporation (NASDAQ:NTRS). Headquartered in Chicago, Illinois, Northern Trust Corporation (NASDAQ:NTRS) is a financial holding company that offers wealth management, asset servicing, and banking solutions. The one-month return of Northern Trust Corporation (NASDAQ:NTRS) was 5.89%, and its shares gained 46.81% of their value over the last 52 weeks. On July 18, 2025, Northern Trust Corporation (NASDAQ:NTRS) stock closed at $127.93 per share, with a market capitalization of $24.887 billion.
Ariel Fund stated the following regarding Northern Trust Corporation (NASDAQ:NTRS) in its second quarter 2025 investor letter:
"Additionally, leading global financial franchise Northern Trust Corporation (NASDAQ:NTRS) advanced in the quarter following strong quarterly earnings results and rumors of a potential merger with Bank of New York Mellon. In our view, NTRS remains a trusted name offering diversified products in a favorable industry with high barriers to entry. We believe Northern's 135-year track record highlights its stability and strength in navigating macroeconomic volatility with a conservative, operating approach."
A successful investor smiling confidently, looking over a stock market report.
Northern Trust Corporation (NASDAQ:NTRS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 33 hedge fund portfolios held Northern Trust Corporation (NASDAQ:NTRS) at the end of the first quarter, compared to 42 in the previous quarter. While we acknowledge the potential of Northern Trust Corporation (NASDAQ:NTRS) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None. This article is originally published at Insider Monkey.
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