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

Key Points

• 52‑week high: Federated Hermes shares traded as high as $59.05 and were last around $58.27 on Wednesday, on roughly 30,559 shares exchanged.
• Analyst view: Despite the rally, the Street's consensus is a "Hold" with a $55.00 price target (two Buys vs. five Holds among covering analysts), implying limited upside at current levels.
• Fundamentals: The company reported a Q that beat expectations (EPS $1.39 vs. $1.20; revenue $482.8M, +13.7% YoY), with strong profitability (ROE 34.25%), a P/E of 11.32, and a quarterly dividend of $0.34 (≈2.3% yield).

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $59.05 and last traded at $58.2740, with a volume of 30559 shares traded. The stock had previously closed at $58.30.

Wall Street Analyst Weigh In

FHI has been the subject of a number of recent research reports. Weiss Ratings reissued a "buy (b)" rating on shares of Federated Hermes in a report on Thursday, January 22nd. TD Cowen reissued a "hold" rating on shares of Federated Hermes in a report on Thursday, April 9th. Royal Bank Of Canada reissued a "sector perform" rating and issued a $55.00 target price (up from $54.00) on shares of Federated Hermes in a report on Tuesday, February 3rd. Argus raised Federated Hermes to a "hold" rating in a report on Monday, February 2nd. Finally, Wall Street Zen raised Federated Hermes from a "hold" rating to a "buy" rating in a report on Saturday, April 4th. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $55.00.

Federated Hermes Price Performance

The stock has a fifty day moving average of $55.97 and a two-hundred day moving average of $53.04. The stock has a market capitalization of $4.42 billion, a price-to-earnings ratio of 11.32, a PEG ratio of 1.97 and a beta of 0.67. The company has a current ratio of 2.75, a quick ratio of 2.30 and a debt-to-equity ratio of 0.29.

Federated Hermes (NYSE:FHI - Get Free Report) last released its quarterly earnings results on Thursday, January 29th. The company reported $1.39 earnings per share for the quarter, beating analysts' consensus estimates of $1.20 by $0.19. Federated Hermes had a return on equity of 34.25% and a net margin of 22.40%.The firm had revenue of $482.83 million during the quarter, compared to analysts' expectations of $468.45 million. During the same period last year, the firm posted $1.04 EPS. The business's revenue was up 13.7% on a year-over-year basis. As a group, equities research analysts forecast that Federated Hermes, Inc. will post 4.04 earnings per share for the current year.

Federated Hermes Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, February 6th were issued a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend was Friday, February 6th. Federated Hermes's dividend payout ratio (DPR) is currently 26.46%.

Insider Buying and Selling

In other Federated Hermes news, VP Paul A. Uhlman sold 72,392 shares of the stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $56.23, for a total value of $4,070,602.16. Following the transaction, the vice president directly owned 263,987 shares in the company, valued at approximately $14,843,989.01. This trade represents a 21.52% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. Torren Management LLC bought a new position in Federated Hermes in the 4th quarter valued at $25,000. MAI Capital Management boosted its position in Federated Hermes by 86.7% in the 3rd quarter. MAI Capital Management now owns 476 shares of the company's stock valued at $25,000 after buying an additional 221 shares during the last quarter. CIBC Private Wealth Group LLC boosted its position in Federated Hermes by 119.7% in the 4th quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company's stock valued at $38,000 after buying an additional 401 shares during the last quarter. Parkside Financial Bank & Trust boosted its position in Federated Hermes by 145.8% in the 4th quarter. Parkside Financial Bank & Trust now owns 848 shares of the company's stock valued at $44,000 after buying an additional 503 shares during the last quarter. Finally, Caitong International Asset Management Co. Ltd boosted its position in Federated Hermes by 220.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 863 shares of the company's stock valued at $45,000 after buying an additional 594 shares during the last quarter. 75.94% of the stock is currently owned by institutional investors.

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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