Federated Hermes (NYSE:FHI) Hits New 12-Month High - Here's What Happened

Key Points

• Federated Hermes (NYSE:FHI) hit a new 52-week high, trading as high as $59.05 after closing previously at $58.21. The move came alongside modest volume and a 1.1% stock gain.
• The company reported better-than-expected quarterly results, with EPS of $1.27 versus estimates of $1.20 and revenue of $478.96 million, up 13.1% year over year. Analysts still view the stock cautiously overall, with a consensus rating of Hold and an average target price of $55.00.
• Federated Hermes raised its quarterly dividend to $0.38 per share from $0.34, implying a 2.6% annualized yield. Meanwhile, CEO Saker Anwar Nusseibeh and VP Bryan M. Burke both sold shares in recent insider transactions.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $59.05 and last traded at $58.9630, with a volume of 119667 shares changing hands. The stock had previously closed at $58.21.

Analyst Upgrades and Downgrades

FHI has been the topic of several research analyst reports. Royal Bank Of Canada dropped their target price on shares of Federated Hermes from $56.00 to $54.00 and set a "sector perform" rating on the stock in a research report on Wednesday, May 6th. TD Cowen decreased their price target on shares of Federated Hermes from $58.00 to $54.00 and set a "hold" rating on the stock in a research note on Monday, May 4th. Evercore reissued an "outperform" rating and issued a $59.00 price target on shares of Federated Hermes in a research note on Monday, June 8th. Weiss Ratings reissued a "buy (b)" rating on shares of Federated Hermes in a research note on Tuesday, April 21st. Finally, Wall Street Zen downgraded shares of Federated Hermes from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $55.00.

Federated Hermes Stock Up 1.1%

The company has a debt-to-equity ratio of 0.29, a current ratio of 3.28 and a quick ratio of 2.73. The business's 50 day simple moving average is $56.32 and its 200 day simple moving average is $54.83. The company has a market capitalization of $4.47 billion, a PE ratio of 11.41, a P/E/G ratio of 2.08 and a beta of 0.65.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.27 EPS for the quarter, topping 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 company had revenue of $478.96 million for the quarter, compared to the consensus estimate of $475.22 million. During the same period in the previous year, the firm earned $1.25 earnings per share. Federated Hermes's quarterly revenue was up 13.1% compared to the same quarter last year. As a group, analysts anticipate that Federated Hermes, Inc. will post 5.1 earnings per share for the current fiscal year.

Federated Hermes Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 8th were paid a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.6%. This is a boost from Federated Hermes's previous quarterly dividend of $0.34. The ex-dividend date of this dividend was Friday, May 8th. Federated Hermes's payout ratio is presently 29.46%.

Insider Transactions at Federated Hermes

In other news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the business's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $57.34, for a total value of $513,193.00. Following the sale, the chief executive officer directly owned 151,276 shares of the company's stock, valued at approximately $8,674,165.84. The trade was a 5.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Bryan M. Burke sold 4,000 shares of the company's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total transaction of $216,800.00. Following the sale, the vice president directly owned 74,921 shares in the company, valued at approximately $4,060,718.20. The trade was a 5.07% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 4.20% of the stock is owned by insiders.

Institutional Investors Weigh In On Federated Hermes

Large investors have recently added to or reduced their stakes in the business. MAI Capital Management increased its stake in Federated Hermes by 86.7% during the 3rd quarter. MAI Capital Management now owns 476 shares of the company's stock worth $25,000 after buying an additional 221 shares during the period. Torren Management LLC purchased a new stake in Federated Hermes during the 4th quarter worth approximately $25,000. Root Financial Partners LLC increased its stake in Federated Hermes by 71.0% during the 1st quarter. Root Financial Partners LLC now owns 571 shares of the company's stock worth $32,000 after buying an additional 237 shares during the period. CIBC Private Wealth Group LLC increased its stake in Federated Hermes by 119.7% during the 4th quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company's stock worth $38,000 after buying an additional 401 shares during the period. Finally, Parkside Financial Bank & Trust increased its stake in Federated Hermes by 145.8% during the 4th quarter. Parkside Financial Bank & Trust now owns 848 shares of the company's stock worth $44,000 after buying an additional 503 shares during the period. 75.94% of the stock is owned by hedge funds and other 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.