Federated Hermes, Inc. (NYSE:FHI) Receives Consensus Rating of 'Hold'

Federated Hermes, Inc. (NYSE:FHI – Get Free Report) has obtained an overall consensus rating of “Hold” from six brokerages monitoring the company, as reported by MarketBeat Ratings. Out of these, four analysts have assigned a hold rating, while two believe the stock warrants a buy rating. The average price target set by these analysts for the next twelve months is $42.17.

Recent commentary from several equity research analysts reflects diverse views on the stock. For instance, StockNews.com downgraded Federated Hermes from a “strong-buy” rating to a “buy” rating in a report published on November 26. In another instance, TD Cowen upgraded Federated Hermes from “hold” to “buy,” adjusting the price target upward from $35.00 to $46.00 in a note issued on October 28. Conversely, JPMorgan Chase & Co. reiterated a “neutral” rating on the stock, adjusting the target price downward from $49.00 to $42.00 in a report released on January 7. Furthermore, Deutsche Bank maintained a “hold” rating, setting the target price at $43.00, reduced from an earlier $45.00. Lastly, the Royal Bank of Canada revised their target from $36.00 to $39.00 and rated the stock as “sector perform” on October 28.

Current Trading Status

On Monday, shares of Federated Hermes opened at $38.39. The stock has a twelve-month low of $31.24 and a high of $43.92. Key financial ratios include a current ratio of 2.75, a quick ratio of 2.03, and a debt-to-equity ratio of 0.32. The company holds a market capitalization of $3.14 billion, with a P/E ratio of 12.34 and a P/E/G ratio of 1.19. The stock has a 50-day moving average of $41.59 and a 200-day moving average of $37.42.

Latest Earnings Report

Federated Hermes recently disclosed its quarterly earnings results on October 24. The firm reported earnings per share (EPS) of $1.06, surpassing analyst expectations of $0.92 by $0.14. The return on equity was recorded at 29.85%, and the company posted a net margin of 16.62%. Revenues for the quarter amounted to $408.46 million, slightly below the anticipated $410.26 million. In the same quarter last year, the EPS was $0.86, indicating a year-over-year revenue increase of 1.4%. Analysts forecast the company to report an EPS of 3.88 for the current fiscal year.

Dividend Information

In addition, the company recently declared a quarterly dividend, which was paid on November 15. Shareholders on record as of November 8 received a dividend of $0.31 per share. The annualized dividend totals $1.24, which reflects a dividend yield of 3.23%. Presently, Federated Hermes has a dividend payout ratio of 39.87%.

Insider Transactions

In related developments, CEO Saker Anwar Nusseibeh sold 12,152 shares of Federated Hermes on November 4 for an average price of $39.86, resulting in a transaction totaling approximately $484,378.72. After this sale, the CEO retains ownership of 179,096 company shares, valued around $7,138,766.56, representing a 6.35% reduction in their holdings. This transaction is filed with the Securities and Exchange Commission. Furthermore, VP Paul A. Uhlman sold 6,311 shares on November 19 at an average price of $41.39, totaling about $261,212.29. This sale decreased his holdings by 1.99%. Over the past ninety days, insiders collectively sold 29,280 shares worth around $1,185,871. The insiders retain 3.70% ownership of the company’s stock.

Institutional Investor Movements

In terms of institutional investments, several large investors have adjusted their stakes in Federated Hermes. Los Angeles Capital Management acquired a new position valued at around $206,000 in the second quarter. Acadian Asset Management raised their holdings by 23.3%, now owning 3,402 shares after adding 643 in the last quarter. Headlands Technologies increased its position by 134.9%, acquiring an additional 1,117 shares for a total of 1,945 shares. American Century Companies also boosted their stake by 112.4%, owning 56,333 shares after buying an additional 29,814 shares. Lastly, DekaBank Deutsche Girozentrale established a new stake worth about $120,000. Overall, institutional investors now hold 75.94% of the firm's stock.

Company Overview

Federated Hermes, Inc. operates as a publicly owned investment manager, providing services through subsidiaries to a range of clients, including individuals (especially high net worth), banking institutions, investment companies, pension plans, and other organizations.

Federated, Hermes, Earnings