Federated Hermes (NYSE:FHI) Posts 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 data on Thursday. The company reported $1.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.99 by $0.17, Zacks reports. 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 during the quarter, compared to analyst estimates of $424.83 million. During the same period last year, the firm posted $0.96 EPS. The company's revenue was up 5.5% on a year-over-year basis.

Federated Hermes Trading Down 0.2%

FHI traded down $0.09 during trading on Wednesday, reaching $51.32. The company had a trading volume of 217,396 shares, compared to its average volume of 834,184. The stock has a market cap of $4.06 billion, a P/E ratio of 11.40, a PEG ratio of 0.94 and a beta of 0.77. The business has a 50 day simple moving average of $45.17 and a 200-day simple moving average of $41.45. Federated Hermes has a 52 week low of $31.94 and a 52 week high of $51.63. The company has a quick ratio of 2.35, a current ratio of 3.37 and a debt-to-equity ratio of 0.31.

Federated Hermes Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 15th. Investors of record on Friday, August 8th will be given a $0.34 dividend. The ex-dividend date is Friday, August 8th. This represents a $1.36 dividend on an annualized basis and a yield of 2.7%. Federated Hermes's dividend payout ratio (DPR) is currently 30.16%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on FHI shares. Royal Bank Of Canada increased their price objective on shares of Federated Hermes from $43.00 to $45.00 and gave the company a "sector perform" rating in a report on Thursday, July 10th. Evercore ISI increased their price objective on shares of Federated Hermes from $46.00 to $48.00 and gave the company an "outperform" rating in a report on Monday. Wall Street Zen lowered shares of Federated Hermes from a "strong-buy" rating to a "buy" rating in a report on Saturday. TD Cowen lowered shares of Federated Hermes from a "buy" rating to a "hold" rating in a report on Wednesday, May 14th. Finally, JPMorgan Chase & Co. raised shares of Federated Hermes from an "underweight" rating to a "neutral" rating and raised their target price for the company from $40.00 to $54.00 in a report on Monday. Five equities research analysts have rated the stock with a hold rating and two have assigned a buy rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $46.00.

Insider Transactions at Federated Hermes

In related news, VP Paul A. Uhlman sold 6,057 shares of the firm's stock in a transaction on Tuesday, May 27th. The stock was sold at an average price of $42.14, for a total value of $255,241.98. Following the completion of the sale, the vice president directly owned 316,930 shares in the company, valued at $13,355,430.20. This trade represents a 1.88% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Federated Hermes

A number of institutional investors have recently bought and sold shares of FHI. 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 first 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 purchasing an additional 24,960 shares during the last quarter. Jones Financial Companies Lllp lifted 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 worth $362,000 after purchasing an additional 6,244 shares during the last quarter. Finally, United Services Automobile Association bought a new stake in shares of Federated Hermes during the first quarter worth $220,000. 75.94% of the stock is currently owned by institutional investors.

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.