Federated Hermes (NYSE:FHI) Hits New 1-Year High - Should You Buy?

Key Points

• Federated Hermes' stock price reached a new 52-week high of $52.27, trading with a volume of 470,566 shares following a previous close of $51.57.
• Analyst ratings show mixed reviews, with Wall Street Zen downgrading the stock to a "buy" and JPMorgan Chase upgrading it to "neutral" with a price target up from $40 to $54.
• The company announced a quarterly dividend of $0.34 per share, leading to an annual yield of 2.6%, with a payout ratio of 30.16%.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $52.27 and last traded at $52.20, with a volume of 470566 shares. The stock had previously closed at $51.57.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on the stock. Wall Street Zen cut shares of Federated Hermes from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 2nd. JPMorgan Chase & Co. upgraded Federated Hermes from an "underweight" rating to a "neutral" rating and upped their price target for the stock from $40.00 to $54.00 in a report on Monday, August 4th. Royal Bank Of Canada upped their price target on Federated Hermes from $43.00 to $45.00 and gave the stock a "sector perform" rating in a report on Thursday, July 10th. Evercore ISI upped their price target on Federated Hermes from $46.00 to $48.00 and gave the stock an "outperform" rating in a report on Monday, August 4th. Finally, TD Cowen cut Federated Hermes from a "buy" rating to a "hold" rating in a report on Wednesday, May 14th. Five research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $46.00.

Federated Hermes Trading Up 1.2%

The firm has a market capitalization of $4.05 billion, a price-to-earnings ratio of 11.57, a price-to-earnings-growth ratio of 0.73 and a beta of 0.77. The company has a current ratio of 3.37, a quick ratio of 2.32 and a debt-to-equity ratio of 0.31. The company has a fifty day moving average price of $45.90 and a 200-day moving average price of $41.84.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its earnings results on Thursday, July 31st. The company reported $1.16 earnings per share (EPS) for the quarter, beating 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 business had revenue of $424.84 million for the quarter, compared to analyst estimates of $424.83 million. During the same period last year, the business posted $0.96 EPS. Federated Hermes's revenue was up 5.5% compared to the same quarter last year. On average, equities research analysts predict that Federated Hermes, Inc. will post 4.04 EPS for the current year.

Federated Hermes Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, August 15th. Shareholders of record on Friday, August 8th will be paid a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 2.6%. The ex-dividend date is Friday, August 8th. Federated Hermes's dividend payout ratio is currently 30.16%.

Insider Transactions at Federated Hermes

In other Federated Hermes news, VP Paul A. Uhlman sold 6,057 shares of the firm's stock in a transaction dated Tuesday, May 27th. The shares were sold at an average price of $42.14, for a total value of $255,241.98. Following the completion of the sale, the vice president owned 316,930 shares in the company, valued at approximately $13,355,430.20. This trade represents a 1.88% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 3.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Farther Finance Advisors LLC raised its stake in shares of Federated Hermes by 246.6% during the 1st quarter. Farther Finance Advisors LLC now owns 863 shares of the company's stock worth $35,000 after purchasing an additional 614 shares in the last quarter. Quarry LP acquired a new position in Federated Hermes in the 4th quarter valued at $37,000. AdvisorNet Financial Inc acquired a new stake in shares of Federated Hermes during the 2nd quarter worth $44,000. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Federated Hermes by 22.7% during the 1st quarter. Northwestern Mutual Wealth Management Co. now owns 1,551 shares of the company's stock worth $63,000 after purchasing an additional 287 shares in the last quarter. Finally, Virtus Advisers LLC acquired a new stake in Federated Hermes in the first quarter valued at about $72,000. Institutional investors and hedge funds own 75.94% of the company's stock.

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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