Federated Hermes, Inc. (NYSE:FHI) Receives Average Rating of "Hold" from Analysts

Key Points

• Analyst sentiment is neutral: Federated Hermes has an average rating of “Hold” from seven covering brokerages, with one sell, four hold, and two buy ratings. The average 12-month price target is $54.
• Recent earnings beat expectations: The company reported $1.27 EPS for the quarter, topping estimates of $1.20, while revenue of $478.96 million also came in slightly ahead of forecasts. Revenue rose 13.1% year over year.
• Dividend and insider activity stand out: Federated Hermes raised its quarterly dividend to $0.38 per share from $0.34, for an annualized yield of about 2.7%. Meanwhile, two executives sold shares recently, and insiders own 4.20% of the stock.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) has earned an average recommendation of "Hold" from the seven brokerages that are currently covering the stock, MarketBeat reports. One analyst has rated the stock with a sell rating, four have assigned a hold rating and two have issued a buy rating on the company. The average 1 year price target among brokers that have covered the stock in the last year is $54.00.

A number of brokerages have weighed in on FHI. Weiss Ratings reiterated a "buy (b)" rating on shares of Federated Hermes in a research report on Tuesday, April 21st. Argus upgraded shares of Federated Hermes to a "hold" rating in a research report on Monday, February 2nd. TD Cowen dropped their price target on shares of Federated Hermes from $58.00 to $54.00 and set a "hold" rating for the company in a research report on Monday, May 4th. Wall Street Zen cut shares of Federated Hermes from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Finally, Royal Bank Of Canada dropped their price target on shares of Federated Hermes from $56.00 to $54.00 and set a "sector perform" rating for the company in a research report on Wednesday, May 6th.

Federated Hermes Price Performance

Shares of FHI stock opened at $56.98 on Thursday. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.28 and a quick ratio of 2.73. The firm's 50-day moving average is $56.25 and its two-hundred day moving average is $54.10. Federated Hermes has a 12 month low of $41.55 and a 12 month high of $59.05. The company has a market capitalization of $4.33 billion, a PE ratio of 11.04, a price-to-earnings-growth ratio of 2.00 and a beta of 0.67.

Federated Hermes (NYSE:FHI - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.27 earnings per share for the quarter, beating analysts' consensus estimates of $1.20 by $0.07. Federated Hermes had a net margin of 21.47% and a return on equity of 33.90%. The business had revenue of $478.96 million during the quarter, compared to analysts' expectations of $475.22 million. During the same period last year, the business earned $1.25 earnings per share. The business's revenue for the quarter was up 13.1% on a year-over-year basis. Analysts predict that Federated Hermes will post 5.1 earnings per share for the current year.

Federated Hermes Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 8th were given a dividend of $0.38 per share. This is a boost from Federated Hermes's previous quarterly dividend of $0.34. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Friday, May 8th. Federated Hermes's dividend payout ratio (DPR) is 29.46%.

Insider Transactions at Federated Hermes

In related news, VP Paul A. Uhlman sold 72,392 shares of Federated Hermes stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $56.23, for a total value of $4,070,602.16. Following the completion of the transaction, the vice president owned 263,987 shares in the company, valued at approximately $14,843,989.01. The trade was a 21.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Bryan M. Burke sold 4,000 shares of Federated Hermes stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $54.20, for a total transaction of $216,800.00. Following the completion of the transaction, the vice president owned 74,921 shares of the company's stock, valued at $4,060,718.20. This trade represents a 5.07% decrease in their position. The disclosure for this sale is available in the SEC filing. 4.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in FHI. Schneider Downs Wealth Management Advisors LP grew its holdings in shares of Federated Hermes by 3,229.0% in the third quarter. Schneider Downs Wealth Management Advisors LP now owns 2,657,263 shares of the company's stock valued at $137,992,000 after purchasing an additional 2,577,442 shares in the last quarter. Victory Capital Management Inc. grew its holdings in shares of Federated Hermes by 2,410.2% in the third quarter. Victory Capital Management Inc. now owns 779,492 shares of the company's stock valued at $40,479,000 after purchasing an additional 748,439 shares in the last quarter. Invesco Ltd. grew its holdings in shares of Federated Hermes by 29.6% in the third quarter. Invesco Ltd. now owns 2,939,908 shares of the company's stock valued at $152,669,000 after purchasing an additional 670,643 shares in the last quarter. Jupiter Asset Management Ltd. grew its holdings in shares of Federated Hermes by 2,427.2% in the third quarter. Jupiter Asset Management Ltd. now owns 527,368 shares of the company's stock valued at $27,386,000 after purchasing an additional 506,500 shares in the last quarter. Finally, AQR Capital Management LLC grew its holdings in shares of Federated Hermes by 20.1% in the second quarter. AQR Capital Management LLC now owns 2,978,885 shares of the company's stock valued at $132,024,000 after purchasing an additional 498,202 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.

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.