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

Key Points

• Analysts rate Federated Hermes “Hold” overall: Of eight covering brokerages, five recommend holding, two recommend buying and one recommends selling. The average 12-month price target is $57.40, below the stock’s reported $62.98 price.
• Quarterly results beat expectations: Federated Hermes reported EPS of $1.38 versus the $1.19 consensus estimate, while revenue reached $502.78 million, up 18.3% year over year and above expectations.
• The company declared a quarterly dividend of $0.38 per share, equivalent to $1.52 annually and a 2.4% yield. Institutional investors own approximately 75.94% of the stock, while the CEO recently sold 8,950 shares.

Shares of Federated Hermes, Inc. (NYSE:FHI - Get Free Report) have received a consensus recommendation of "Hold" from the eight brokerages that are currently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, five have given a hold recommendation and two have issued a buy recommendation on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $57.40.

FHI has been the topic of a number of recent research reports. JPMorgan Chase & Co. lowered their target price on Federated Hermes from $56.00 to $53.00 and set an "underweight" rating on the stock in a research note on Monday, May 4th. Wall Street Zen cut Federated Hermes from a "buy" rating to a "hold" rating in a research report on Sunday. Weiss Ratings raised Federated Hermes from a "buy (b)" rating to a "buy (b+)" rating in a report on Friday, July 31st. TD Cowen lowered their price objective on Federated Hermes from $58.00 to $54.00 and set a "hold" rating on the stock in a research report on Monday, May 4th. Finally, Royal Bank Of Canada lifted their target price on shares of Federated Hermes from $54.00 to $57.00 and gave the company a "sector perform" rating in a report on Thursday, July 2nd.

Insiders Place Their Bets

In other Federated Hermes news, CEO Saker Anwar 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 transaction, the chief executive officer 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 filing with the Securities & Exchange Commission, which is accessible through this link. Insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Federated Hermes

Several institutional investors and hedge funds have recently modified their holdings of FHI. Torren Management LLC purchased a new position in Federated Hermes during the fourth quarter worth approximately $25,000. Root Financial Partners LLC increased its position in shares of Federated Hermes by 71.0% in the first quarter. Root Financial Partners LLC now owns 571 shares of the company's stock valued at $32,000 after buying an additional 237 shares in the last quarter. CIBC Private Wealth Group LLC raised 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 worth $38,000 after buying an additional 401 shares during the period. Parkside Financial Bank & Trust raised 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 worth $44,000 after buying an additional 503 shares during the period. Finally, Caitong International Asset Management Co. Ltd lifted its position in shares of 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 buying an additional 594 shares in the last quarter. Hedge funds and other institutional investors own 75.94% of the company's stock.

Federated Hermes Stock Down 0.3%

NYSE:FHI opened at $62.98 on Tuesday. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.59 and a quick ratio of 1.89. The company's fifty day moving average price is $58.71 and its 200-day moving average price is $56.73. Federated Hermes has a 1-year low of $46.66 and a 1-year high of $67.20. The firm has a market capitalization of $4.70 billion, a P/E ratio of 11.71, a PEG ratio of 1.48 and a beta of 0.65.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its earnings results on Thursday, July 30th. The company reported $1.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.19 by $0.19. The company had revenue of $502.78 million during the quarter, compared to the consensus estimate of $488.34 million. Federated Hermes had a net margin of 21.30% and a return on equity of 34.03%. The firm's quarterly revenue was up 18.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.16 earnings per share. As a group, equities research analysts anticipate that Federated Hermes will post 5.43 EPS for the current year.

Federated Hermes Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, August 7th will be given a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 2.4%. The ex-dividend date is Friday, August 7th. Federated Hermes's dividend payout ratio (DPR) is currently 28.25%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source