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

Key Points

• Federated Hermes has an average analyst rating of “Hold”, with seven firms covered: one sell, four hold, and two buy ratings. The average 12-month price target is $55.00.
• The company recently reported better-than-expected quarterly results, posting EPS of $1.27 versus the $1.20 consensus and revenue of $478.96 million, up 13.1% year over year. Analysts expect full-year EPS of 5.1.
• Federated Hermes also raised its quarterly dividend to $0.38 from $0.34, putting the annualized payout at $1.52 and the yield at 2.6%. The payout ratio is currently 29.46%.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) has been given an average rating of "Hold" by the seven ratings firms that are presently covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and two have given a buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $55.00.

A number of research analysts recently issued reports on FHI shares. Weiss Ratings reiterated a "buy (b)" rating on shares of Federated Hermes in a research note on Tuesday, April 21st. JPMorgan Chase & Co. decreased their price target on shares of Federated Hermes from $56.00 to $53.00 and set an "underweight" rating for the company in a research note on Monday, May 4th. Wall Street Zen downgraded shares of Federated Hermes from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Royal Bank Of Canada decreased 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 note on Wednesday, May 6th. Finally, Evercore reiterated an "outperform" rating and issued a $59.00 price target on shares of Federated Hermes in a research note on Monday, June 8th.

Federated Hermes Trading Up 0.2%

NYSE FHI opened at $59.21 on Monday. The firm has a 50 day simple moving average of $56.46 and a 200-day simple moving average of $55.08. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.73 and a current ratio of 3.28. Federated Hermes has a one year low of $41.96 and a one year high of $59.83. The firm has a market cap of $4.49 billion, a price-to-earnings ratio of 11.47, a PEG ratio of 2.11 and a beta of 0.65.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.27 EPS for the quarter, beating the consensus estimate 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 analyst estimates of $475.22 million. During the same quarter last year, the firm posted $1.25 earnings per share. The business's revenue for the quarter was up 13.1% compared to the same quarter last year. Equities research analysts anticipate that Federated Hermes will post 5.1 EPS for the current fiscal year.

Federated Hermes Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 8th were paid a $0.38 dividend. This is an increase from Federated Hermes's previous quarterly dividend of $0.34. This represents a $1.52 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date was Friday, May 8th. Federated Hermes's payout ratio is presently 29.46%.

Insider Buying and Selling

In related news, 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 value of $216,800.00. Following the completion of the transaction, the vice president owned 74,921 shares in the company, valued at $4,060,718.20. The trade was a 5.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Saker Anwar Nusseibeh sold 8,950 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $57.34, for a total transaction of $513,193.00. Following the sale, the chief executive officer directly owned 151,276 shares in the company, valued at approximately $8,674,165.84. The trade was a 5.59% decrease in their position. The SEC filing for this sale provides additional information. 4.20% of the stock is owned by insiders.

Institutional Trading of Federated Hermes

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FHI. Schneider Downs Wealth Management Advisors LP raised its holdings in Federated Hermes by 3,229.0% during the third quarter. Schneider Downs Wealth Management Advisors LP now owns 2,657,263 shares of the company's stock worth $137,992,000 after purchasing an additional 2,577,442 shares in the last quarter. Victory Capital Management Inc. raised its holdings in Federated Hermes by 2,410.2% during the third quarter. Victory Capital Management Inc. now owns 779,492 shares of the company's stock worth $40,479,000 after purchasing an additional 748,439 shares in the last quarter. Invesco Ltd. raised its holdings in Federated Hermes by 29.6% during the third quarter. Invesco Ltd. now owns 2,939,908 shares of the company's stock worth $152,669,000 after purchasing an additional 670,643 shares in the last quarter. AQR Capital Management LLC raised its holdings in Federated Hermes by 20.1% during the second quarter. AQR Capital Management LLC now owns 2,978,885 shares of the company's stock worth $132,024,000 after purchasing an additional 498,202 shares in the last quarter. Finally, LSV Asset Management increased its holdings in shares of Federated Hermes by 20.4% in the 4th quarter. LSV Asset Management now owns 2,890,276 shares of the company's stock valued at $150,497,000 after acquiring an additional 489,275 shares during the period. Institutional investors and hedge funds own 75.94% of the company's stock.

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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