Federated Hermes (NYSE:FHI) Upgraded by Wall Street Zen to "Buy" Rating

Key Points

• Wall Street Zen upgraded Federated Hermes from “Hold” to “Buy,” although the broader analyst consensus remains “Hold” with a $55.75 price target.
• Federated Hermes exceeded quarterly expectations, reporting EPS of $1.38 versus $1.19 expected and revenue of $502.78 million, up 18.3% year over year.
• Shares opened at $60.22, near the company’s 52-week high, while institutional investors own approximately 75.94% of outstanding shares.

Federated Hermes (NYSE:FHI - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research report issued on Saturday.

A number of other research firms have also issued reports on FHI. Weiss Ratings reissued a "buy (b)" rating on shares of Federated Hermes in a research note on Friday, July 17th. Evercore restated an "outperform" rating and issued a $59.00 price target on shares of Federated Hermes in a research note on Monday, June 8th. TD Cowen reduced their price objective on Federated Hermes from $58.00 to $54.00 and set a "hold" rating for the company in a research report on Monday, May 4th. Royal Bank Of Canada increased their price objective on Federated Hermes from $54.00 to $57.00 and gave the stock a "sector perform" rating in a report on Thursday, July 2nd. Finally, JPMorgan Chase & Co. cut their target price on Federated Hermes from $56.00 to $53.00 and set an "underweight" rating on the stock in a research note on Monday, May 4th. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $55.75.

Federated Hermes Price Performance

Shares of NYSE FHI opened at $60.22 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.28 and a quick ratio of 2.73. The firm has a market capitalization of $4.57 billion, a PE ratio of 11.19, a P/E/G ratio of 1.61 and a beta of 0.65. Federated Hermes has a 1-year low of $46.66 and a 1-year high of $61.01. The business's fifty day moving average price is $57.76 and its two-hundred day moving average price is $56.25.

Federated Hermes (NYSE:FHI - Get Free Report) last announced its quarterly earnings results on Thursday, July 30th. The company reported $1.38 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.19 by $0.19. The company had revenue of $502.78 million during the quarter, compared to the consensus estimate of $488.34 million. Federated Hermes had a net margin of 21.30% and a return on equity of 34.43%. The company's revenue for the quarter was up 18.3% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.16 earnings per share. On average, research analysts expect that Federated Hermes will post 5.24 EPS for the current year.

Insider Activity at Federated Hermes

In other Federated Hermes news, VP Bryan M. Burke sold 4,000 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total transaction of $216,800.00. Following the completion of the transaction, the vice president directly owned 74,921 shares of the company's stock, valued at approximately $4,060,718.20. This trade represents a 5.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Saker Anwar Nusseibeh sold 8,950 shares of Federated Hermes stock in a transaction on Monday, June 8th. The shares were sold at an average price of $57.34, for a total value of $513,193.00. Following the transaction, the chief executive officer owned 151,276 shares in the company, valued at approximately $8,674,165.84. This trade represents a 5.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.20% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the company. Schneider Downs Wealth Management Advisors LP boosted its stake in shares of Federated Hermes by 3,229.0% during the 3rd quarter. Schneider Downs Wealth Management Advisors LP now owns 2,657,263 shares of the company's stock worth $137,992,000 after acquiring an additional 2,577,442 shares in the last quarter. Invesco Ltd. raised its position in shares of Federated Hermes by 29.6% during the third quarter. Invesco Ltd. now owns 2,939,908 shares of the company's stock worth $152,669,000 after purchasing an additional 670,643 shares during the period. Victory Capital Management Inc. lifted its holdings in shares of Federated Hermes by 78.9% during the fourth quarter. Victory Capital Management Inc. now owns 1,394,622 shares of the company's stock valued at $72,618,000 after purchasing an additional 615,130 shares during the last quarter. AQR Capital Management LLC lifted its holdings in shares of Federated Hermes by 20.1% during the second quarter. AQR Capital Management LLC now owns 2,978,885 shares of the company's stock valued at $132,024,000 after purchasing an additional 498,202 shares during the last quarter. Finally, LSV Asset Management boosted its position in shares of Federated Hermes by 20.4% in the 4th quarter. LSV Asset Management now owns 2,890,276 shares of the company's stock valued at $150,497,000 after purchasing an additional 489,275 shares during the period. Institutional investors own 75.94% of the company's stock.

Trending Headlines about Federated Hermes

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

• Positive Sentiment: Quarterly earnings beat estimates: Federated Hermes reported diluted EPS of $1.38, up from $1.16 a year earlier and above the $1.19 consensus estimate. Revenue reached $502.8 million, exceeding expectations of $488.3 million and increasing 18.3% year over year. Federated Hermes Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Record managed assets support future fee revenue: Total assets under management rose to a record $911.6 billion as of June 30, up 8% from a year earlier and $4.5 billion from the previous quarter. Equity assets also reached a record $109.6 billion. The growth suggests favorable scale and potential support for future operating results. Federated Hermes Reports Record Assets Under Management
• Positive Sentiment: Dividend maintained: The board declared a quarterly dividend of $0.38 per share, equivalent to $1.52 annually and an indicated yield of approximately 2.5%. Shareholders of record on August 7 will receive payment on August 14. Federated Hermes Dividend Announcement
• Neutral Sentiment: Investor focus turns to expenses and outlook: The earnings beat was achieved despite higher operating expenses. Investors may look for additional details from the earnings presentation and call regarding expense trends, asset flows, fee rates and the sustainability of the record asset base. Federated Hermes 2026 Q2 Results Presentation

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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