Stock Market News For Nov 16, 2018
Northern Trust Corporation NTRS has closed the deal to acquire Citadel’s Omnium Technology Platform. A team of software development professionals and software development rights concerning the technology were also part of the agreement.
Northern Trust had announced the deal in January 2018, with an aim to provide innovative solutions for alternative fund managers, asset managers, institutional investors and family offices across the world.
The acquisition will likely foster in-house development of technology, which in turn, will enable the company to have greater control over technological enhancements.
Peter Sanchez, Head of North America Alternative Fund Services, said, “We see significant benefits to integrating this technology team’s formidable talent with our expert operations. This integrated partnership will help us build on our record of innovation and client service.”
Notably, in 2011, Northern Trust had acquired Citadel’s Omnium Hedge Fund administration business. It now provides services to hedge funds and large institutional investors as well as middle office and administration services under the name Northern Trust Hedge Fund Services.
This business provides an attractive proposition to clients. This deal resulted in a significant rise in the company’s assets under administration, which has grown from $70 billion in 2011 to nearly $400 billion at present.
Further, Northern Trust continues to benefit from its strong wealth management operations with diversified products. Also, the latest buyout will support the company’s growth prospects.
The stock has gained 2.8% in the past six months against 6% decline of the industry it belongs to.
Northern Trust currently carries a Zacks Rank #3 (Hold).
Some better-ranked finance stocks are Metropolitan Bank Holding Corp. MCB and Elevate Credit, Inc. ELVT and CM Finance Inc. CMFN. All these sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the last 60 days, Metropolitan Bank has witnessed an upward earnings estimate revision of 4.7% for the current year. Its share price has increased 16.1% in the past six months.
Elevate Credit’s earnings estimates for the current year have risen marginally over the past 60 days. Its shares have gained 5.5% in the past six months.
Over the last 60 days, CM Finance has witnessed a 4% upward earnings estimate revision for the current year. In the past six months, its share price has increased 5.3%.
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