Federated Hermes (NYSE:FHI) Hits New 1-Year High on Analyst Upgrade

Key Points

• Federated Hermes reached a new 52-week high of $51.15 after Evercore ISI raised its price target from $46.00 to $48.00, maintaining an outperform rating on the stock.
• JPMorgan Chase upgraded Federated Hermes from "underweight" to "neutral" with a target price increase from $40.00 to $54.00, showcasing optimism among analysts.
• The company declared a quarterly dividend of $0.34, indicating a 2.7% yield and a payout ratio of 30.16% for its shareholders.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) reached a new 52-week high on Tuesday after Evercore ISI raised their price target on the stock from $46.00 to $48.00. Evercore ISI currently has an outperform rating on the stock. Federated Hermes traded as high as $51.15 and last traded at $50.96, with a volume of 1150327 shares trading hands. The stock had previously closed at $49.23.

A number of other equities research analysts also recently weighed in on FHI. JPMorgan Chase & Co. raised Federated Hermes from an "underweight" rating to a "neutral" rating and lifted their target price for the stock from $40.00 to $54.00 in a research report on Monday. Royal Bank Of Canada lifted their target price on Federated Hermes from $43.00 to $45.00 and gave the stock a "sector perform" rating in a research report on Thursday, July 10th. Wall Street Zen downgraded Federated Hermes from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Finally, TD Cowen downgraded Federated Hermes from a "buy" rating to a "hold" rating in a research report on Wednesday, May 14th. Five investment analysts have rated the stock with a hold rating and two have issued a buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and an average target price of $46.00.

Insiders Place Their Bets

In other Federated Hermes news, VP Paul A. Uhlman sold 6,057 shares of Federated Hermes stock in a transaction that occurred on Tuesday, May 27th. The stock was sold at an average price of $42.14, for a total transaction of $255,241.98. Following the sale, the vice president directly owned 316,930 shares of the company's stock, valued at approximately $13,355,430.20. The trade was a 1.88% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 3.80% of the company's stock.

Institutional Investors Weigh In On Federated Hermes

A number of institutional investors have recently added to or reduced their stakes in FHI. Diversified Trust Co boosted its holdings in shares of Federated Hermes by 2.6% in the 2nd quarter. Diversified Trust Co now owns 9,036 shares of the company's stock worth $400,000 after acquiring an additional 229 shares in the last quarter. Hohimer Wealth Management LLC raised its position in Federated Hermes by 3.8% in the 1st quarter. Hohimer Wealth Management LLC now owns 6,795 shares of the company's stock worth $277,000 after purchasing an additional 249 shares during the last quarter. CW Advisors LLC raised its position in Federated Hermes by 3.8% in the 1st quarter. CW Advisors LLC now owns 7,168 shares of the company's stock worth $292,000 after purchasing an additional 261 shares during the last quarter. Walleye Capital LLC raised its position in Federated Hermes by 4.1% in the 4th quarter. Walleye Capital LLC now owns 6,877 shares of the company's stock worth $283,000 after purchasing an additional 269 shares during the last quarter. Finally, Pacer Advisors Inc. raised its position in Federated Hermes by 2.5% in the 1st quarter. Pacer Advisors Inc. now owns 11,900 shares of the company's stock worth $485,000 after purchasing an additional 286 shares during the last quarter. 75.94% of the stock is owned by institutional investors and hedge funds.

Federated Hermes Stock Up 3.5%

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 firm's 50-day moving average is $44.99 and its two-hundred day moving average is $41.38. The stock has a market cap of $4.03 billion, a P/E ratio of 11.30, a PEG ratio of 0.91 and a beta of 0.77.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $1.16 EPS for the quarter, beating the consensus estimate of $0.99 by $0.17. The company had revenue of $424.84 million during the quarter, compared to analysts' expectations of $424.83 million. Federated Hermes had a net margin of 21.67% and a return on equity of 32.30%. The business's revenue for the quarter was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.96 EPS. On average, equities research analysts anticipate that Federated Hermes, Inc. will post 4.04 earnings per share for the current year.

Federated Hermes Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Stockholders of record on Friday, August 8th will be issued a $0.34 dividend. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.36 annualized dividend and a dividend yield of 2.7%. Federated Hermes's payout ratio is 30.16%.

Federated Hermes Company Profile

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.

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