Federated Hermes, Inc. (NYSE:FHI) Given Average Recommendation of "Hold" by Analysts

Key Points

• Analyst consensus: Seven analysts give Federated Hermes a consensus "Hold" (1 sell, 4 hold, 2 buy) with an average 12‑month target price of $55.25.
• Quarterly results and dividend: Q1 EPS of $1.27 and revenue of $479M beat estimates, assets under management reached a record $907.1B with revenue up ~13% YoY, and the company raised its quarterly dividend to $0.38 (annualized $1.52, ~2.8% yield).
• Profitability concerns and insider activity: Higher operating expenses pressured net income despite top‑line strength, and VP Paul A. Uhlman sold 72,392 shares (a ~21.5% reduction in his position); insiders own about 4.2% while institutions hold ~75.9%.

Shares of Federated Hermes, Inc. (NYSE:FHI - Get Free Report) have been given a consensus rating of "Hold" by the seven analysts that are covering the company, Marketbeat.com reports. One equities research analyst has rated the stock with a sell recommendation, four have given a hold recommendation and two have issued a buy recommendation on the company. The average 12 month target price among analysts that have covered the stock in the last year is $55.25.

FHI has been the subject of several recent analyst reports. Argus raised Federated Hermes to a "hold" rating in a research report on Monday, February 2nd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Federated Hermes in a research report on Tuesday, April 21st. JPMorgan Chase & Co. lowered Federated Hermes from a "neutral" rating to an "underweight" rating and lifted their price target for the stock from $55.00 to $56.00 in a research report on Thursday, April 16th. TD Cowen reiterated a "hold" rating on shares of Federated Hermes in a report on Thursday, April 9th. Finally, Wall Street Zen downgraded Federated Hermes from a "buy" rating to a "hold" rating in a report on Saturday.

Federated Hermes Price Performance

FHI opened at $54.18 on Friday. The stock has a 50-day moving average price of $56.63 and a 200-day moving average price of $53.45. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.75 and a quick ratio of 2.30. The firm has a market cap of $4.12 billion, a PE ratio of 10.50, a P/E/G ratio of 1.89 and a beta of 0.67. Federated Hermes has a 1 year low of $41.04 and a 1 year high of $59.05.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $1.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.07. The firm had revenue of $478.96 million during the quarter, compared to analyst estimates of $475.22 million. Federated Hermes had a return on equity of 34.18% and a net margin of 21.47%.Federated Hermes's quarterly revenue was up 13.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.25 EPS. Sell-side analysts predict that Federated Hermes will post 5.08 earnings per share for the current fiscal year.

Federated Hermes Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Investors of record on Friday, May 8th will be issued a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 2.8%. The ex-dividend date is Friday, May 8th. This is a positive change from Federated Hermes's previous quarterly dividend of $0.34. Federated Hermes's dividend payout ratio is 26.36%.

Insider Buying and Selling

In related news, VP Paul A. Uhlman sold 72,392 shares of Federated Hermes stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $56.23, for a total value of $4,070,602.16. Following the completion of the sale, the vice president directly owned 263,987 shares in the company, valued at approximately $14,843,989.01. This trade represents a 21.52% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 4.20% of the company's stock.

Institutional Investors Weigh In On Federated Hermes

Large investors have recently bought and sold shares of the business. MAI Capital Management increased its holdings in Federated Hermes by 86.7% in the 3rd quarter. MAI Capital Management now owns 476 shares of the company's stock worth $25,000 after buying an additional 221 shares in the last quarter. Torren Management LLC bought a new stake in Federated Hermes in the 4th quarter worth about $25,000. Root Financial Partners LLC grew its stake in shares of Federated Hermes by 71.0% during the 1st quarter. Root Financial Partners LLC now owns 571 shares of the company's stock valued at $32,000 after purchasing an additional 237 shares during the period. CIBC Private Wealth Group LLC grew its stake in shares of Federated Hermes by 119.7% during the 4th quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company's stock valued at $38,000 after purchasing an additional 401 shares during the period. Finally, Parkside Financial Bank & Trust grew its stake in shares of Federated Hermes by 145.8% during the 4th quarter. Parkside Financial Bank & Trust now owns 848 shares of the company's stock valued at $44,000 after purchasing an additional 503 shares during the period. 75.94% of the stock is currently owned by institutional investors.

Trending Headlines about Federated Hermes

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Record assets under management — Federated Hermes reported record total AUM of $907.1 billion (money market and equity inflows drove gains), supporting fee revenue growth and demonstrating scale that should help future fee income. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Positive Sentiment: Q1 beat on EPS and revenue — Q1 EPS of $1.27 topped consensus (~$1.20) and revenue of $479M beat expectations; revenue was up ~13% year-over-year, indicating healthy top-line momentum. Federated Hermes (FHI) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Dividend increased — Board raised the quarterly dividend ~11.8% to $0.38/share (annualized yield ~2.7%), signaling confidence in cash flow and returning capital to shareholders. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Neutral Sentiment: Earnings call and prepared remarks — Management commentary and the conference call transcript provide more detail on flow dynamics, product performance and strategic priorities; these are useful for assessing sustainability of fee growth. Federated Hermes, Inc. (FHI) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Prepared remarks available — The shareholder/analyst prepared remarks give additional color on sources of growth and capital allocation but don’t materially change the headline results. Federated Hermes, Inc. (FHI) Shareholder/Analyst Call Prepared Remarks Transcript
• Negative Sentiment: Rising expenses and margin pressure — Analysts and reports note higher operating expenses that weighed on net income (Q1 net income fell vs. prior year, partly influenced by a prior-year VAT refund). That margin pressure appears to be the main reason investors are selling despite revenue/AUM strength. Federated Hermes Q1 Earnings Beat Estimates, AUM Reaches Record Level

Federated Hermes Company Profile

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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