Federated Hermes, Inc. (NYSE:FHI) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Federated Hermes has a “Moderate Buy” consensus rating among eight analysts, with an average 12-month price target of $57.40. Ratings include one sell, four holds, one buy, and two strong buys.
• The company reported quarterly EPS of $1.38, beating estimates of $1.19, while revenue rose 18.3% year over year to $502.78 million. Shares recently opened at $62.49, above the consensus price target.
• Federated Hermes pays a quarterly dividend of $0.38 per share, equivalent to a $1.52 annualized payout and a 2.4% yield; institutional investors own approximately 75.94% of the stock.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) has been assigned an average rating of "Moderate Buy" from the eight research firms that are presently covering the firm, Marketbeat reports. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, one has given a buy rating and two have given a strong buy rating to the company. The average twelve-month price target among brokerages that have issued ratings on the stock in the last year is $57.40.

A number of analysts have commented on the stock. Royal Bank Of Canada upped their price target on shares of Federated Hermes from $54.00 to $57.00 and gave the company a "sector perform" rating in a research report on Thursday, July 2nd. Deutsche Bank Aktiengesellschaft reissued a "hold" rating and issued a $58.00 price objective on shares of Federated Hermes in a research note on Monday, August 3rd. Zacks Research upgraded Federated Hermes from a "hold" rating to a "strong-buy" rating in a report on Friday, August 21st. Weiss Ratings raised Federated Hermes from a "buy (b+)" rating to a "buy (a-)" rating in a research note on Monday, August 17th. Finally, Wall Street Zen cut Federated Hermes from a "buy" rating to a "hold" rating in a report on Sunday, August 9th.

Insider Buying and Selling

In other Federated Hermes news, CEO Saker Nusseibeh sold 8,950 shares of Federated Hermes stock in a transaction on Monday, June 8th. The shares were sold at an average price of $57.34, for a total value of $513,193.00. Following the completion of the sale, the chief executive officer directly owned 151,276 shares of the company's stock, valued at approximately $8,674,165.84. The trade was a 5.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 4.20% of the company's stock.

Institutional Trading of Federated Hermes

Several large investors have recently made changes to their positions in the company. Jones Financial Companies Lllp increased its holdings in shares of Federated Hermes by 236.0% during the first quarter. Jones Financial Companies Lllp now owns 8,890 shares of the company's stock valued at $362,000 after acquiring an additional 6,244 shares in the last quarter. United Services Automobile Association bought a new position in shares of Federated Hermes in the 1st quarter worth $220,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in Federated Hermes by 11.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,613 shares of the company's stock valued at $9,769,000 after purchasing an additional 24,960 shares during the period. American Century Companies Inc. grew its position in Federated Hermes by 1.9% in the 2nd quarter. American Century Companies Inc. now owns 33,246 shares of the company's stock valued at $1,474,000 after purchasing an additional 614 shares during the period. Finally, Prudential Financial Inc. increased its stake in Federated Hermes by 4.9% during the 2nd quarter. Prudential Financial Inc. now owns 11,744 shares of the company's stock valued at $497,000 after purchasing an additional 547 shares in the last quarter. 75.94% of the stock is currently owned by institutional investors and hedge funds.

Federated Hermes Stock Up 0.5%

Shares of NYSE FHI opened at $62.49 on Friday. The company's 50 day moving average price is $60.90 and its 200-day moving average price is $58.05. 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 52-week low of $46.66 and a 52-week high of $67.20. The company has a market capitalization of $4.67 billion, a P/E ratio of 11.62, a price-to-earnings-growth ratio of 1.65 and a beta of 0.65.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The company reported $1.38 earnings per share for the quarter, topping 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 company had revenue of $502.78 million during the quarter, compared to analysts' expectations of $488.34 million. During the same period in the prior year, the company posted $1.16 earnings per share. Federated Hermes's revenue for the quarter was up 18.3% compared to the same quarter last year. Equities analysts forecast that Federated Hermes will post 5.5 earnings per share for the current year.

Federated Hermes Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, August 7th were paid a dividend of $0.38 per share. The ex-dividend date of this dividend was Friday, August 7th. This represents a $1.52 annualized dividend and a yield of 2.4%. Federated Hermes's dividend payout ratio is currently 28.25%.

About Federated Hermes

Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.

In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.

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