Wall Street Zen Upgrades Federated Hermes (NYSE:FHI) to "Buy"

Key Points

• Wall Street Zen upgraded Federated Hermes from “hold” to “buy,” while the broader analyst consensus remains “Moderate Buy” with an average price target of $57.40.
• Federated Hermes reported quarterly EPS of $1.38, exceeding estimates of $1.19, while revenue reached $502.78 million and rose 18.3% year over year.
• Shares opened at $59.64, with a $4.45 billion market capitalization and a 52-week trading range of $46.66 to $67.20; institutional investors and hedge funds own 75.94% of the stock.

Federated Hermes (NYSE:FHI - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

FHI has been the topic of a number of other reports. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $58.00 price target on shares of Federated Hermes in a research report on Monday, August 3rd. Evercore restated an "outperform" rating and set a $65.00 price objective on shares of Federated Hermes in a research report on Monday, August 10th. Weiss Ratings upgraded Federated Hermes from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Monday, August 17th. Royal Bank Of Canada increased their target price on Federated Hermes from $54.00 to $57.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 2nd. Finally, Zacks Research upgraded Federated Hermes from a "hold" rating to a "strong-buy" rating in a research note on Friday, August 21st. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $57.40.

Federated Hermes Price Performance

Shares of NYSE:FHI opened at $59.64 on Friday. The company has a market cap of $4.45 billion, a PE ratio of 11.09, a P/E/G ratio of 1.62 and a beta of 0.65. Federated Hermes has a fifty-two week low of $46.66 and a fifty-two week high of $67.20. The firm has a 50-day simple moving average of $61.42 and a 200 day simple moving average of $58.25. The company has a quick ratio of 1.89, a current ratio of 2.59 and a debt-to-equity ratio of 0.28.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.38 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 posted $1.16 earnings per share. Federated Hermes's revenue was up 18.3% on a year-over-year basis. On average, sell-side analysts anticipate that Federated Hermes will post 5.5 EPS for the current year.

Institutional Trading of Federated Hermes

A number of institutional investors have recently made changes to their positions in the stock. Root Financial Partners LLC increased its stake in shares of Federated Hermes by 71.0% during the first quarter. Root Financial Partners LLC now owns 571 shares of the company's stock valued at $32,000 after acquiring an additional 237 shares during the period. CIBC Private Wealth Group LLC lifted its position in Federated Hermes by 119.7% in the fourth quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company's stock worth $38,000 after purchasing an additional 401 shares during the period. Parkside Financial Bank & Trust lifted its position in Federated Hermes by 145.8% in the fourth quarter. Parkside Financial Bank & Trust now owns 848 shares of the company's stock worth $44,000 after purchasing an additional 503 shares during the period. Caitong International Asset Management Co. Ltd boosted its stake in Federated Hermes by 220.8% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 863 shares of the company's stock valued at $45,000 after purchasing an additional 594 shares in the last quarter. Finally, Rockefeller Capital Management L.P. boosted its stake in Federated Hermes by 24.2% during the 4th quarter. Rockefeller Capital Management L.P. now owns 996 shares of the company's stock valued at $52,000 after purchasing an additional 194 shares in the last quarter. 75.94% of the stock is owned by institutional investors and hedge funds.

About Federated Hermes

Federated Hermes, Inc NYSE: FHI is a global investment manager that provides asset-management services to institutions, financial professionals and individual investors. The company manages a range of investment strategies, including money market, equity, fixed-income, multi-asset and alternative investments.

Its products and services include mutual funds, exchange-traded funds, separately managed accounts, collective investment trusts and institutional accounts. Federated Hermes also provides liquidity-management and cash-management solutions, while its Hermes business offers investment management, stewardship and sustainable-investing capabilities.

The company traces its roots to Federated Investors, which was founded in 1955 and is headquartered in Pittsburgh, Pennsylvania.

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