Federated Hermes (NYSE:FHI) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Federated Hermes from “Buy” to “Hold,” while the broader analyst consensus is also “Hold,” with an average price target of $57.80.
• Federated Hermes reported stronger-than-expected quarterly results, earning $1.38 per share versus the $1.19 consensus estimate and generating $502.78 million in revenue, up 18.3% year over year.
• Institutional investors own approximately 75.94% of the company, with several hedge funds recently increasing their positions or initiating new stakes.

Federated Hermes (NYSE:FHI - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other equities research analysts also recently commented on FHI. Evercore reissued an "outperform" rating and issued a $65.00 price objective on shares of Federated Hermes in a research report on Monday, August 10th. Zacks Research downgraded shares of Federated Hermes from a "strong-buy" rating to a "hold" rating in a research note on Friday, October 9th. Royal Bank Of Canada boosted their target price on shares of Federated Hermes from $54.00 to $57.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 2nd. TD Cowen dropped their target price on Federated Hermes from $60.00 to $56.00 and set a "hold" rating on the stock in a report on Monday, October 12th. Finally, Weiss Ratings upgraded Federated Hermes from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company currently has an average rating of "Hold" and an average price target of $57.80.

Federated Hermes Stock Performance

Shares of Federated Hermes stock opened at $56.01 on Friday. The business has a 50-day simple moving average of $59.92 and a 200-day simple moving average of $58.33. The company has a debt-to-equity ratio of 0.28, a quick ratio of 1.89 and a current ratio of 2.59. Federated Hermes has a one year low of $46.66 and a one year high of $67.20. The company has a market cap of $4.18 billion, a PE ratio of 10.50, a P/E/G ratio of 1.49 and a beta of 0.66.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.19. Federated Hermes had a net margin of 21.30% and a return on equity of 34.03%. The firm had revenue of $502.78 million for the quarter, compared to analysts' expectations of $488.34 million. During the same quarter last year, the company earned $1.16 earnings per share. The firm's revenue was up 18.3% compared to the same quarter last year. On average, equities research analysts forecast that Federated Hermes will post 5.51 EPS for the current fiscal year.

Hedge Funds Weigh In On Federated Hermes

Hedge funds have recently made changes to their positions in the company. BI Asset Management Fondsmaeglerselskab A S increased its position in shares of Federated Hermes by 255.9% during the first quarter. BI Asset Management Fondsmaeglerselskab A S now owns 144,671 shares of the company's stock worth $8,204,000 after purchasing an additional 104,017 shares in the last quarter. Janney Montgomery Scott LLC boosted its position in shares of Federated Hermes by 34.6% in the 1st quarter. Janney Montgomery Scott LLC now owns 337,326 shares of the company's stock valued at $19,130,000 after purchasing an additional 86,658 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Federated Hermes in the 2nd quarter valued at about $2,833,000. QRG Capital Management Inc. acquired a new stake in shares of Federated Hermes in the 1st quarter valued at about $2,421,000. Finally, First Trust Advisors LP grew its stake in Federated Hermes by 5.6% during the 1st quarter. First Trust Advisors LP now owns 616,598 shares of the company's stock worth $34,967,000 after buying an additional 32,810 shares during the last quarter. Hedge funds and other institutional investors own 75.94% of the company's stock.

Federated Hermes Company Profile

Federated Hermes, Inc is a global investment management company that provides investment strategies and related services to institutions, financial professionals and individual investors. The company manages assets across a range of asset classes, including equities, fixed income, money market instruments, multi-asset strategies and alternative investments.

Its products and services include mutual funds, exchange-traded funds, separately managed accounts, collective investment funds and institutional mandates.

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