Federated Hermes, Inc. (NYSE:FHI) Sees Significant Growth in Short Interest

Key Points

• Short interest rose 14.7% to 3,152,471 shares as of April 15, equal to 4.3% of the company's stock and a days-to-cover ratio of 3.8.
• Federated Hermes beat Q1 estimates with EPS of $1.27 vs $1.20 and revenue of $478.96M (up 13.1% year-over-year), reporting a 34.25% return on equity and a 22.4% net margin.
• The firm raised its quarterly dividend to $0.38 from $0.34 (annualized $1.52, ~2.6% yield), with an ex-dividend date of May 8 and payment on May 15.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) was the recipient of a large growth in short interest in April. As of April 15th, there was short interest totaling 3,152,471 shares, a growth of 14.7% from the March 31st total of 2,747,264 shares. Based on an average daily volume of 832,672 shares, the days-to-cover ratio is currently 3.8 days. Currently, 4.3% of the company's stock are sold short.

Federated Hermes Trading Up 3.1%

NYSE:FHI opened at $58.11 on Friday. The stock has a 50-day simple moving average of $56.63 and a 200-day simple moving average of $53.44. The stock has a market cap of $4.41 billion, a P/E ratio of 11.30, a P/E/G ratio of 1.97 and a beta of 0.67. Federated Hermes has a 1 year low of $40.24 and a 1 year high of $59.05. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.30 and a current ratio of 2.75.

Federated Hermes (NYSE:FHI - Get Free Report) last released its quarterly earnings data 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 business had revenue of $478.96 million during the quarter, compared to analysts' expectations of $475.22 million. Federated Hermes had a return on equity of 34.25% and a net margin of 22.40%.The business's quarterly revenue was up 13.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.25 EPS. As a group, analysts anticipate 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. Stockholders of record on Friday, May 8th will be given a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $1.52 annualized dividend and a dividend yield of 2.6%. This is an increase from Federated Hermes's previous quarterly dividend of $0.34. Federated Hermes's payout ratio is currently 26.46%.

Insider Buying and Selling

In related news, VP Paul A. Uhlman sold 72,392 shares of the business's stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $56.23, for a total transaction of $4,070,602.16. Following the completion of the transaction, the vice president directly owned 263,987 shares of the company's stock, valued at $14,843,989.01. The trade was a 21.52% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 4.20% of the stock is owned by insiders.

Institutional Trading of Federated Hermes

A number of large investors have recently made changes to their positions in the company. Rockefeller Capital Management L.P. boosted its position in shares of Federated Hermes by 24.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 996 shares of the company's stock valued at $52,000 after purchasing an additional 194 shares during the period. GAMMA Investing LLC boosted its position in shares of Federated Hermes by 8.3% in the 4th quarter. GAMMA Investing LLC now owns 2,734 shares of the company's stock valued at $142,000 after purchasing an additional 210 shares during the period. MAI Capital Management raised its stake in Federated Hermes by 86.7% during the 3rd quarter. MAI Capital Management now owns 476 shares of the company's stock valued at $25,000 after acquiring an additional 221 shares during the last quarter. Root Financial Partners LLC raised its stake in 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 acquiring an additional 237 shares during the last quarter. Finally, RiverFront Investment Group LLC raised its stake in Federated Hermes by 4.7% during the 4th quarter. RiverFront Investment Group LLC now owns 5,744 shares of the company's stock valued at $299,000 after acquiring an additional 256 shares during the last quarter. 75.94% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

FHI has been the subject of several analyst reports. TD Cowen reissued a "hold" rating on shares of Federated Hermes in a research note on Thursday, April 9th. Wall Street Zen raised Federated Hermes from a "hold" rating to a "buy" rating in a research note on Saturday, April 4th. Weiss Ratings reissued a "buy (b)" rating on shares of Federated Hermes in a research note on Tuesday, April 21st. JPMorgan Chase & Co. cut Federated Hermes from a "neutral" rating to an "underweight" rating and boosted their target price for the stock from $55.00 to $56.00 in a research note on Thursday, April 16th. Finally, Argus raised Federated Hermes to a "hold" rating in a research note on Monday, February 2nd. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $55.25.

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.

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