Federated Hermes, Inc. (NYSE:FHI) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Consensus "Hold": Seven analysts cover Federated Hermes with an overall consensus rating of "Hold" (five holds, two buys) and an average 12‑month target price of $55.00.
• Earnings beat and solid margins: The company topped Q4 estimates with $1.39 EPS versus $1.20 expected and $482.8M revenue (up 13.7% year‑over‑year), reporting a 22.4% net margin and 34.25% ROE; analysts expect about $4.04 EPS for the year.
• Shareholder returns and insider activity: Federated Hermes pays a $0.34 quarterly dividend ($1.36 annualized, ~2.4% yield) while VP Paul Uhlman sold 72,392 shares recently and institutional investors own roughly 75.9% of the stock.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) has been given a consensus recommendation of "Hold" by the seven analysts that are covering the stock, Marketbeat.com reports. Five investment analysts have rated the stock with a hold recommendation and two have given a buy recommendation to the company. The average twelve-month target price among brokers that have covered the stock in the last year is $55.00.

FHI has been the topic of several analyst reports. Wall Street Zen raised shares of Federated Hermes from a "hold" rating to a "buy" rating in a report on Saturday. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Federated Hermes in a report on Thursday, January 22nd. Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $55.00 target price (up from $54.00) on shares of Federated Hermes in a report on Tuesday, February 3rd. Zacks Research lowered shares of Federated Hermes from a "strong-buy" rating to a "hold" rating in a report on Tuesday, December 9th. Finally, TD Cowen reaffirmed a "hold" rating on shares of Federated Hermes in a report on Wednesday, January 14th.

Federated Hermes Trading Down 1.3%

Shares of Federated Hermes stock opened at $56.81 on Wednesday. The firm has a market capitalization of $4.32 billion, a PE ratio of 11.05, a price-to-earnings-growth ratio of 2.02 and a beta of 0.67. 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 company's fifty day moving average price is $55.60 and its two-hundred day moving average price is $52.87. Federated Hermes has a 52-week low of $35.39 and a 52-week high of $58.57.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its earnings results on Thursday, January 29th. The company reported $1.39 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.19. Federated Hermes had a net margin of 22.40% and a return on equity of 34.25%. The business had revenue of $482.83 million for the quarter, compared to analyst estimates of $468.45 million. During the same quarter in the prior year, the firm earned $1.04 EPS. The firm's quarterly revenue was up 13.7% compared to the same quarter last year. On average, analysts expect that Federated Hermes will post 4.04 EPS for the current year.

Federated Hermes Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, February 13th. Stockholders of record on Friday, February 6th were issued a $0.34 dividend. The ex-dividend date of this dividend was Friday, February 6th. This represents a $1.36 annualized dividend and a dividend yield of 2.4%. Federated Hermes's dividend payout ratio is presently 26.46%.

Insider Buying and Selling at Federated Hermes

In related news, VP Paul A. Uhlman sold 72,392 shares of the company's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $56.23, for a total transaction of $4,070,602.16. Following the transaction, the vice president owned 263,987 shares in the company, valued at $14,843,989.01. This represents a 21.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in FHI. Jones Financial Companies Lllp lifted its position in Federated Hermes by 236.0% during the 1st quarter. Jones Financial Companies Lllp now owns 8,890 shares of the company's stock worth $362,000 after buying an additional 6,244 shares in the last quarter. United Services Automobile Association acquired a new position in Federated Hermes during the 1st quarter worth about $220,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in Federated Hermes by 11.6% during 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 worth $9,769,000 after buying an additional 24,960 shares in the last quarter. JPMorgan Chase & Co. lifted its position in Federated Hermes by 12.3% during the 2nd quarter. JPMorgan Chase & Co. now owns 261,793 shares of the company's stock worth $11,603,000 after buying an additional 28,575 shares in the last quarter. Finally, American Century Companies Inc. lifted its position in Federated Hermes by 1.9% during the 2nd quarter. American Century Companies Inc. now owns 33,246 shares of the company's stock worth $1,474,000 after buying an additional 614 shares in the last quarter. Institutional investors and hedge funds own 75.94% of the company's stock.

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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