JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Federated Hermes (NYSE:FHI) Stock

Key Points

• JPMorgan raised Federated Hermes’ price target from $54 to $56 but maintained an “underweight” rating, implying roughly 9% downside from the prior close.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $58.40; targets range from $56 to $65.
• Federated Hermes exceeded quarterly expectations, reporting $1.50 in EPS versus $1.42 expected and revenue of $507.33 million, up 8.1% year over year.

Federated Hermes (NYSE:FHI - Get Free Report) had its price objective increased by analysts at JPMorgan Chase & Co. from $54.00 to $56.00 in a research note issued on Monday, Benzinga reports. The brokerage currently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s price target indicates a potential downside of 9.01% from the company's previous close.

A number of other brokerages have also commented on FHI. Weiss Ratings raised Federated Hermes from a "buy (b+)" rating to a "buy (a-)" rating in a report on Friday, October 9th. Wall Street Zen cut shares of Federated Hermes from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Deutsche Bank Aktiengesellschaft restated a "hold" rating and issued a $58.00 price target on shares of Federated Hermes in a research report on Monday, August 3rd. Evercore reiterated an "outperform" rating and set a $65.00 price target on shares of Federated Hermes in a research report on Monday, August 10th. Finally, TD Cowen lowered their target price on Federated Hermes from $60.00 to $56.00 and set a "hold" rating for the company in a research note on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, one has given a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Federated Hermes presently has an average rating of "Hold" and a consensus target price of $58.40.

Federated Hermes Stock Performance

Federated Hermes stock traded up $3.06 during trading hours on Monday, hitting $61.54. The company had a trading volume of 107,378 shares, compared to its average volume of 712,650. The firm has a market cap of $4.59 billion, a PE ratio of 11.08, a PEG ratio of 1.54 and a beta of 0.67. The company has a debt-to-equity ratio of 0.27, a current ratio of 2.48 and a quick ratio of 1.89. Federated Hermes has a one year low of $47.26 and a one year high of $67.20. The firm has a 50-day moving average of $58.61 and a 200 day moving average of $57.38.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The company reported $1.50 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.42 by $0.08. Federated Hermes had a return on equity of 33.94% and a net margin of 21.28%. The company had revenue of $507.33 million during the quarter, compared to analysts' expectations of $504.91 million. During the same quarter in the previous year, the company posted $1.34 earnings per share. The business's revenue was up 8.1% on a year-over-year basis. On average, sell-side analysts expect that Federated Hermes will post 5.51 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Rockefeller Capital Management L.P. lifted its stake in Federated Hermes by 24.2% in the fourth quarter. Rockefeller Capital Management L.P. now owns 996 shares of the company's stock valued at $52,000 after buying an additional 194 shares during the period. Kestra Private Wealth Services LLC grew its stake in shares of Federated Hermes by 2.3% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 10,096 shares of the company's stock worth $569,000 after acquiring an additional 227 shares in the last quarter. Nisa Investment Advisors LLC grew its stake in Federated Hermes by 1.5% in the 3rd quarter. Nisa Investment Advisors LLC now owns 15,910 shares of the company's stock valued at $897,000 after purchasing an additional 228 shares during the period. Root Financial Partners LLC raised its holdings in shares of Federated Hermes by 71.0% in the 1st quarter. Root Financial Partners LLC now owns 571 shares of the company's stock worth $32,000 after purchasing an additional 237 shares during the period. Finally, State of Michigan Retirement System raised its position in shares of Federated Hermes by 1.7% in the first quarter. State of Michigan Retirement System now owns 17,776 shares of the company's stock valued at $1,008,000 after purchasing an additional 300 shares during the period. 75.94% of the stock is owned by institutional investors and hedge funds.

About Federated Hermes

Federated Hermes, Inc is a global investment management company that provides asset management services to individuals, financial intermediaries, corporations, governments and other institutions. The company manages a range of investment strategies, including equity, fixed-income, money market, multi-asset, alternative and liquidity management products.

Its offerings are distributed through mutual funds, exchange-traded funds, separately managed accounts, collective investment trusts and institutional mandates.

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