Federated Hermes (NYSE:FHI) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Federated Hermes (FHI) from a "buy" to a "hold"; the stock's consensus rating is Hold with a $55.25 average price target (2 buys, 4 holds, 1 sell from analysts).
• FHI beat Q1 estimates with $1.27 EPS and $479M revenue and reported record AUM of $907.1B plus an ~11.8% dividend increase, but rising operating expenses pressured margins and the stock traded down about 6.7%.
• VP Paul A. Uhlman sold 72,392 shares for roughly $4.07M (a 21.52% reduction in his stake); insiders own 4.2% of shares while institutional investors hold about 75.94%.

Federated Hermes (NYSE:FHI - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Saturday.

Several other research analysts have also weighed in on the company. Argus raised Federated Hermes to a "hold" rating in a research report on Monday, February 2nd. TD Cowen reaffirmed a "hold" rating on shares of Federated Hermes in a research report on Thursday, April 9th. JPMorgan Chase & Co. lowered Federated Hermes from a "neutral" rating to an "underweight" rating and increased their target price for the stock from $55.00 to $56.00 in a research report on Thursday, April 16th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Federated Hermes in a research report on Tuesday, April 21st. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $56.00 target price on shares of Federated Hermes in a research report on Tuesday, April 21st. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $55.25.

Federated Hermes Trading Down 6.7%

Shares of FHI opened at $54.18 on Friday. The company has a current ratio of 2.75, a quick ratio of 2.30 and a debt-to-equity ratio of 0.29. The firm has a market capitalization of $4.12 billion, a P/E ratio of 10.54, a price-to-earnings-growth ratio of 2.03 and a beta of 0.67. The stock's fifty day simple moving average is $56.63 and its 200 day simple moving average is $53.44. Federated Hermes has a twelve month low of $41.04 and a twelve month high of $59.05.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.07. The business had revenue of $478.96 million for the quarter, compared to analyst estimates of $475.22 million. Federated Hermes had a return on equity of 34.18% and a net margin of 21.47%.The business's quarterly revenue was up 13.1% on a year-over-year basis. During the same period last year, the company posted $1.25 EPS. On average, equities research analysts forecast that Federated Hermes will post 5.08 earnings per share for the current year.

Insider Activity at Federated Hermes

In other news, VP Paul A. Uhlman sold 72,392 shares of the stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $56.23, for a total transaction of $4,070,602.16. Following the transaction, the vice president owned 263,987 shares of the company's stock, valued at approximately $14,843,989.01. This trade represents a 21.52% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Federated Hermes

Large investors have recently bought and sold shares of the business. Jones Financial Companies Lllp raised its holdings 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 buying an additional 6,244 shares during the last quarter. United Services Automobile Association bought a new stake in shares of Federated Hermes during the first quarter valued at approximately $220,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings 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 valued at $9,769,000 after buying an additional 24,960 shares during the last quarter. American Century Companies Inc. raised its holdings in shares of Federated Hermes by 1.9% during the second quarter. American Century Companies Inc. now owns 33,246 shares of the company's stock valued at $1,474,000 after buying an additional 614 shares during the last quarter. Finally, Prudential Financial Inc. raised its holdings in shares of Federated Hermes by 4.9% during the second quarter. Prudential Financial Inc. now owns 11,744 shares of the company's stock valued at $497,000 after buying an additional 547 shares during the last quarter. Institutional investors own 75.94% of the company's stock.

Key Federated Hermes News

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Record assets under management — Federated Hermes reported record total AUM of $907.1 billion (money market and equity inflows drove gains), supporting fee revenue growth and demonstrating scale that should help future fee income. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Positive Sentiment: Q1 beat on EPS and revenue — Q1 EPS of $1.27 topped consensus (~$1.20) and revenue of $479M beat expectations; revenue was up ~13% year-over-year, indicating healthy top-line momentum. Federated Hermes (FHI) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Dividend increased — Board raised the quarterly dividend ~11.8% to $0.38/share (annualized yield ~2.7%), signaling confidence in cash flow and returning capital to shareholders. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Neutral Sentiment: Earnings call and prepared remarks — Management commentary and the conference call transcript provide more detail on flow dynamics, product performance and strategic priorities; these are useful for assessing sustainability of fee growth. Federated Hermes, Inc. (FHI) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Prepared remarks available — The shareholder/analyst prepared remarks give additional color on sources of growth and capital allocation but don’t materially change the headline results. Federated Hermes, Inc. (FHI) Shareholder/Analyst Call Prepared Remarks Transcript
• Negative Sentiment: Rising expenses and margin pressure — Analysts and reports note higher operating expenses that weighed on net income (Q1 net income fell vs. prior year, partly influenced by a prior-year VAT refund). That margin pressure appears to be the main reason investors are selling despite revenue/AUM strength. Federated Hermes Q1 Earnings Beat Estimates, AUM Reaches Record Level

About Federated Hermes

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.

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