Federated Hermes (NYSE:FHI) Given New $54.00 Price Target at Royal Bank Of Canada

Key Points

• $54 price target: Royal Bank of Canada cut its target on Federated Hermes from $56 to $54 and maintained a "sector perform" rating, while the Street consensus is an average Hold with an average target of $54 (2 Buy, 4 Hold, 1 Sell).
• EPS beat and solid growth: Federated Hermes reported Q EPS of $1.27 vs $1.20 expected and revenue of $478.96M (up 13.1% YoY); the stock traded at $56.29, with a market cap of $4.28B and a P/E of 10.92.
• Insider sale and ownership: VP Paul A. Uhlman sold 72,392 shares for about $4.07M, reducing his stake, while insiders own 4.2% and institutions hold roughly 75.94% of the shares.

Federated Hermes (NYSE:FHI - Get Free Report) had its target price dropped by Royal Bank Of Canada from $56.00 to $54.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price would suggest a potential downside of 4.06% from the company's previous close.

Other analysts have also recently issued reports about the company. Wall Street Zen cut Federated Hermes from a "buy" rating to a "hold" rating in a report on Saturday. Argus upgraded Federated Hermes to a "hold" rating in a research report on Monday, February 2nd. Weiss Ratings reissued a "buy (b)" rating on shares of Federated Hermes in a report on Tuesday, April 21st. TD Cowen decreased their target price on shares of Federated Hermes from $58.00 to $54.00 and set a "hold" rating on the stock in a research report on Monday. Finally, JPMorgan Chase & Co. lowered their price target on shares of Federated Hermes from $56.00 to $53.00 and set an "underweight" rating on the stock in a research note on Monday. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Federated Hermes currently has an average rating of "Hold" and an average target price of $54.00.

Federated Hermes Stock Performance

Federated Hermes stock traded up $1.22 during trading hours on Wednesday, reaching $56.29. 111,858 shares of the stock were exchanged, compared to its average volume of 760,384. The stock has a market cap of $4.28 billion, a P/E ratio of 10.92, a P/E/G ratio of 1.89 and a beta of 0.67. Federated Hermes has a 52-week low of $41.55 and a 52-week high of $59.05. The firm's 50 day moving average is $56.62 and its 200 day moving average is $53.48. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.30 and a current ratio of 3.28.

Federated Hermes (NYSE:FHI - Get Free Report) last announced its quarterly earnings data on Thursday, April 30th. The company reported $1.27 EPS 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 firm had revenue of $478.96 million during the quarter, compared to the consensus estimate of $475.22 million. During the same quarter last year, the firm earned $1.25 earnings per share. The firm's revenue was up 13.1% compared to the same quarter last year. Analysts predict that Federated Hermes will post 5.07 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, VP Paul A. Uhlman sold 72,392 shares of Federated Hermes 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 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 can be accessed through this link. 4.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

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