Federated Hermes (NYSE:FHI) Reaches New 12-Month High - Here's Why

Key Points

• Federated Hermes, Inc. (NYSE:FHI) recently hit a new 52-week high at $49.74, with significant trading volume of 188,647 shares.
• Analysts have given mixed ratings; while one firm upgraded the stock to a "strong-buy", multiple others maintained ratings such as "hold" or "underweight," indicating uncertain market sentiment.
• The company has seen substantial investment activity, with 75.94% of its stock currently held by institutional investors, suggesting strong interest from major financial players.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as $49.71 and last traded at $49.74, with a volume of 188647 shares changing hands. The stock had previously closed at $49.34.

Analyst Ratings Changes

A number of research firms have recently weighed in on FHI. JPMorgan Chase & Co. boosted their target price on Federated Hermes from $39.00 to $40.00 and gave the company an "underweight" rating in a research note on Wednesday, July 9th. Wall Street Zen lowered Federated Hermes from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Royal Bank Of Canada upped their price target on Federated Hermes from $43.00 to $45.00 and gave the company a "sector perform" rating in a research report on Thursday, July 10th. TD Cowen lowered Federated Hermes from a "buy" rating to a "hold" rating in a research report on Wednesday, May 14th. Finally, Evercore ISI upped their price target on Federated Hermes from $38.00 to $41.00 and gave the company an "outperform" rating in a research report on Monday, April 28th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $42.50.

Federated Hermes Price Performance

The company has a current ratio of 3.04, a quick ratio of 2.35 and a debt-to-equity ratio of 0.32. The company has a market cap of $3.90 billion, a PE ratio of 10.92, a P/E/G ratio of 0.91 and a beta of 0.77. The firm has a 50 day moving average of $44.81 and a two-hundred day moving average of $41.27.

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. Federated Hermes had a return on equity of 32.51% and a net margin of 21.67%. The business had revenue of $424.84 million for the quarter, compared to the consensus estimate of $424.83 million. During the same period last year, the business posted $0.96 EPS. The company's revenue was up 5.5% compared to the same quarter last year. Research analysts predict that Federated Hermes, Inc. will post 4.04 earnings per share for the current fiscal 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 dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend is Friday, August 8th. Federated Hermes's dividend payout ratio is presently 38.31%.

Insider Buying and Selling at Federated Hermes

In other news, VP Paul A. Uhlman sold 6,057 shares of the stock in a transaction 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 transaction, the vice president directly owned 316,930 shares of the company's stock, valued at $13,355,430.20. This represents a 1.88% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 3.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Federated Hermes

A number of institutional investors have recently bought and sold shares of the stock. LPL Financial LLC increased its stake in Federated Hermes by 24.5% in the 4th quarter. LPL Financial LLC now owns 19,301 shares of the company's stock worth $793,000 after buying an additional 3,792 shares in the last quarter. Prudential Financial Inc. purchased a new position in shares of Federated Hermes during the fourth quarter valued at about $414,000. JPMorgan Chase & Co. grew its position in shares of Federated Hermes by 6.5% during the fourth quarter. JPMorgan Chase & Co. now owns 268,221 shares of the company's stock valued at $11,027,000 after purchasing an additional 16,399 shares in the last quarter. Norges Bank purchased a new position in shares of Federated Hermes during the fourth quarter valued at about $10,639,000. Finally, O Shaughnessy Asset Management LLC grew its position in shares of Federated Hermes by 40.5% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 20,714 shares of the company's stock valued at $852,000 after purchasing an additional 5,969 shares in the last quarter. 75.94% of the stock is owned by institutional investors.

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.