Federated Hermes (NYSE:FHI) Rating Lowered to Buy at Wall Street Zen

Key Points

• Federated Hermes stock was downgraded from "strong-buy" to "buy" by Wall Street Zen, reflecting uncertainties in the stock's performance.
• The company reported a quarterly earnings per share (EPS) of $1.16, exceeding the consensus estimate of $0.99, with a 5.5% increase in revenue compared to the previous year.
• Brokerages have issued varied ratings, with one sell, four holds, and two buys, resulting in an overall consensus rating of "Hold" and an average price target of $42.50.

Federated Hermes (NYSE:FHI - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a note issued to investors on Saturday.

A number of other research firms have also issued reports on FHI. JPMorgan Chase & Co. raised their price target on shares of Federated Hermes from $39.00 to $40.00 and gave the stock an "underweight" rating in a research report on Wednesday, July 9th. Royal Bank Of Canada lifted their target price on shares of Federated Hermes from $43.00 to $45.00 and gave the company a "sector perform" rating in a report on Thursday, July 10th. TD Cowen lowered shares of Federated Hermes from a "buy" rating to a "hold" rating in a report on Wednesday, May 14th. Finally, Evercore ISI boosted their price target on shares of Federated Hermes from $38.00 to $41.00 and gave the stock an "outperform" rating in a report on Monday, April 28th. Five investment analysts have rated the stock with a hold rating and two have given a buy rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $46.00.

Federated Hermes Stock Performance

FHI stock traded up $0.19 during trading on Friday, reaching $51.23. The company had a trading volume of 283,252 shares, compared to its average volume of 834,331. The firm has a 50-day simple moving average of $44.99 and a 200-day simple moving average of $41.38. The company has a debt-to-equity ratio of 0.31, a quick ratio of 2.35 and a current ratio of 3.37. The company has a market cap of $4.05 billion, a price-to-earnings ratio of 11.36, a price-to-earnings-growth ratio of 0.91 and a beta of 0.77. Federated Hermes has a twelve month low of $31.94 and a twelve month high of $51.24.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $1.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.99 by $0.17. Federated Hermes had a net margin of 21.67% and a return on equity of 32.30%. The company had revenue of $424.84 million during the quarter, compared to analyst estimates of $424.83 million. During the same period last year, the firm posted $0.96 EPS. Federated Hermes's revenue for the quarter was up 5.5% compared to the same quarter last year. As a group, sell-side analysts expect that Federated Hermes will post 4.04 earnings per share for the current year.

Insider Transactions at Federated Hermes

In other Federated Hermes news, VP Paul A. Uhlman sold 6,057 shares of Federated Hermes stock in a transaction on Tuesday, May 27th. The shares were sold at an average price of $42.14, for a total transaction of $255,241.98. Following the sale, the vice president owned 316,930 shares of the company's stock, valued at $13,355,430.20. The trade was a 1.88% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 3.80% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Federated Hermes

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Diversified Trust Co lifted its position in Federated Hermes by 2.6% in the second quarter. Diversified Trust Co now owns 9,036 shares of the company's stock valued at $400,000 after buying an additional 229 shares during the last quarter. Hohimer Wealth Management LLC lifted its position in Federated Hermes by 3.8% in the first quarter. Hohimer Wealth Management LLC now owns 6,795 shares of the company's stock valued at $277,000 after buying an additional 249 shares during the last quarter. CW Advisors LLC lifted its position in Federated Hermes by 3.8% in the first quarter. CW Advisors LLC now owns 7,168 shares of the company's stock valued at $292,000 after buying an additional 261 shares during the last quarter. Walleye Capital LLC lifted its position in Federated Hermes by 4.1% in the fourth quarter. Walleye Capital LLC now owns 6,877 shares of the company's stock valued at $283,000 after buying an additional 269 shares during the last quarter. Finally, Pacer Advisors Inc. lifted its position in Federated Hermes by 2.5% in the first quarter. Pacer Advisors Inc. now owns 11,900 shares of the company's stock valued at $485,000 after buying an additional 286 shares during the last quarter. Institutional investors and hedge funds own 75.94% of the company's stock.

About Federated Hermes

Federated Hermes, Inc is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.