Federated Hermes (NYSE:FHI) Raised to Strong-Buy at Zacks Research

Key Points

• Federated Hermes has been upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating, reflecting increased confidence in the company's performance.
• Analyst estimates suggest significant growth in earnings, with expected EPS for FY2027 projected at $4.94.
• As of the latest reports, 75.94% of Federated Hermes stock is owned by institutional investors and hedge funds, indicating strong institutional interest.

Federated Hermes (NYSE:FHI - Get Free Report) was upgraded by equities researchers at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Wednesday,Zacks.com reports. Zacks Research also issued estimates for Federated Hermes' FY2025 earnings at $4.37 EPS, Q1 2026 earnings at $1.07 EPS, Q2 2026 earnings at $1.08 EPS, Q3 2026 earnings at $1.13 EPS, Q4 2026 earnings at $1.13 EPS, FY2026 earnings at $4.41 EPS, Q1 2027 earnings at $1.21 EPS, Q2 2027 earnings at $1.25 EPS, Q3 2027 earnings at $1.26 EPS and FY2027 earnings at $4.94 EPS.

Other equities research analysts also recently issued research reports about the stock. Weiss Ratings reiterated a "buy (b)" rating on shares of Federated Hermes in a research note on Wednesday, October 8th. Royal Bank Of Canada boosted their target price on shares of Federated Hermes from $45.00 to $51.00 and gave the company a "sector perform" rating in a research note on Thursday, August 14th. JPMorgan Chase & Co. lifted their price target on Federated Hermes from $54.00 to $55.00 and gave the company a "neutral" rating in a report on Tuesday, October 7th. Wall Street Zen cut Federated Hermes from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 2nd. Finally, Evercore ISI boosted their price objective on Federated Hermes from $48.00 to $55.00 and gave the stock an "outperform" rating in a report on Friday, September 5th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $48.33.

Federated Hermes Trading Down 1.8%

Shares of FHI stock opened at $51.23 on Wednesday. Federated Hermes has a 1 year low of $35.05 and a 1 year high of $54.42. The firm's fifty day simple moving average is $52.59 and its 200 day simple moving average is $46.29. The firm has a market capitalization of $3.97 billion, a P/E ratio of 11.36, a price-to-earnings-growth ratio of 0.59 and a beta of 0.80. The company has a current ratio of 3.37, a quick ratio of 2.32 and a debt-to-equity ratio of 0.31.

Federated Hermes (NYSE:FHI - Get Free Report) last announced its earnings results on Thursday, July 31st. The company reported $1.16 earnings per share (EPS) for the quarter, topping 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 quarter in the previous year, the firm posted $0.96 earnings per share. Federated Hermes's revenue was up 5.5% compared to the same quarter last year. As a group, sell-side analysts predict that Federated Hermes will post 4.04 EPS for the current year.

Hedge Funds Weigh In On Federated Hermes

Several institutional investors and hedge funds have recently modified their holdings of FHI. Farther Finance Advisors LLC boosted its position in 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 acquiring an additional 614 shares during the last quarter. AdvisorNet Financial Inc acquired a new position in Federated Hermes during the 2nd quarter worth approximately $44,000. Elevation Point Wealth Partners LLC acquired a new position in Federated Hermes during the 2nd quarter worth approximately $46,000. BI Asset Management Fondsmaeglerselskab A S acquired a new position in Federated Hermes during the 2nd quarter worth approximately $56,000. Finally, Northwestern Mutual Wealth Management Co. boosted its position in 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 acquiring an additional 287 shares during the last quarter. 75.94% of the stock is currently owned by institutional investors and hedge funds.

About Federated Hermes

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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