Federated Hermes (NYSE:FHI) Releases Quarterly Earnings Results, Beats Expectations By $0.17 EPS

Key Points

• Federated Hermes reported earnings of $1.16 per share for the quarter, exceeding analysts' expectations of $0.99 by $0.17.
• The company announced a quarterly dividend of $0.34 per share, yielding 2.8%, payable on August 15th.
• Federated Hermes has a current market capitalization of $3.90 billion, with a price-to-earnings ratio of 10.92 and a recent stock price of $49.25.

Federated Hermes (NYSE:FHI - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.16 earnings per share for the quarter, topping the consensus estimate of $0.99 by $0.17, Zacks reports. Federated Hermes had a net margin of 21.67% and a return on equity of 32.51%. The firm had revenue of $424.84 million during the quarter, compared to analysts' expectations of $424.83 million. During the same quarter in the prior year, the company earned $0.96 EPS. The company's revenue was up 5.5% compared to the same quarter last year.

Federated Hermes Trading Down 0.6%

FHI stock traded down $0.32 during trading on Friday, reaching $49.25. 1,563,862 shares of the stock were exchanged, compared to its average volume of 559,517. 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 business has a 50 day moving average price of $44.81 and a 200-day moving average price of $41.25. Federated Hermes has a 1 year low of $31.94 and a 1 year high of $50.09. The firm has a market capitalization of $3.90 billion, a price-to-earnings ratio of 10.92, a P/E/G ratio of 0.91 and a beta of 0.77.

Federated Hermes Dividend Announcement

The company also recently announced 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. The ex-dividend date of this dividend is Friday, August 8th. This represents a $1.36 dividend on an annualized basis and a yield of 2.8%. Federated Hermes's payout ratio is 38.31%.

Insider Buying and Selling

In other Federated Hermes news, VP Paul A. Uhlman sold 6,057 shares of Federated Hermes stock in a transaction dated Tuesday, May 27th. The shares were 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. The trade was a 1.88% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 3.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Federated Hermes

A number of institutional investors have recently made changes to their positions in FHI. Jones Financial Companies Lllp increased its position in shares of Federated Hermes by 236.0% during the first quarter. Jones Financial Companies Lllp now owns 8,890 shares of the company's stock valued at $362,000 after acquiring an additional 6,244 shares during the last quarter. United Services Automobile Association acquired a new position in Federated Hermes during the 1st quarter worth approximately $220,000. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Federated Hermes by 11.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,613 shares of the company's stock worth $9,769,000 after buying an additional 24,960 shares during the last quarter. 75.94% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

FHI has been the subject of a number of research analyst reports. TD Cowen lowered Federated Hermes from a "buy" rating to a "hold" rating in a research note on Wednesday, May 14th. JPMorgan Chase & Co. raised their price target on shares of Federated Hermes from $39.00 to $40.00 and gave the company an "underweight" rating in a research report on Wednesday, July 9th. Royal Bank Of Canada raised their price target on shares of Federated Hermes from $43.00 to $45.00 and gave the company a "sector perform" rating in a research report on Thursday, July 10th. Evercore ISI raised their price target on shares of Federated Hermes from $38.00 to $41.00 and gave the company an "outperform" rating in a research report on Monday, April 28th. Finally, Wall Street Zen lowered shares of Federated Hermes from a "strong-buy" rating to a "buy" rating in a research report on Saturday. One 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. According to data from MarketBeat, Federated Hermes currently has an average rating of "Hold" and a consensus target price of $42.50.

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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