Bank of America Corp DE Lowers Stock Position in Federated Hermes, Inc. $FHI

Key Points

• Bank of America reduced its Federated Hermes stake by 22.8% in the first quarter, selling 128,927 shares and retaining 435,897 shares worth approximately $24.7 million. Hedge funds and institutional investors collectively own 75.94% of FHI.
• Federated Hermes reported quarterly earnings of $1.38 per share, beating the $1.19 consensus estimate, while revenue rose 18.3% year over year to $502.78 million.
• The company declared a quarterly dividend of $0.38 per share, representing an annualized yield of about 2.4%. Analysts’ consensus rating is Hold, with an average price target of $57.40 versus the stock’s $64.26 opening price.

Bank of America Corp DE trimmed its position in Federated Hermes, Inc. (NYSE:FHI - Free Report) by 22.8% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 435,897 shares of the company's stock after selling 128,927 shares during the quarter. Bank of America Corp DE owned about 0.57% of Federated Hermes worth $24,720,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Rockefeller Capital Management L.P. lifted its holdings in Federated Hermes by 24.2% during the fourth quarter. Rockefeller Capital Management L.P. now owns 996 shares of the company's stock valued at $52,000 after purchasing an additional 194 shares in the last quarter. Root Financial Partners LLC increased its stake in shares of Federated Hermes by 71.0% in the first quarter. Root Financial Partners LLC now owns 571 shares of the company's stock worth $32,000 after purchasing an additional 237 shares in the last quarter. RiverFront Investment Group LLC raised its position in shares of Federated Hermes by 4.7% during the 4th quarter. RiverFront Investment Group LLC now owns 5,744 shares of the company's stock valued at $299,000 after purchasing an additional 256 shares during the period. Advyzon Investment Management LLC raised its position in shares of Federated Hermes by 6.0% during the 4th quarter. Advyzon Investment Management LLC now owns 4,594 shares of the company's stock valued at $239,000 after purchasing an additional 259 shares during the period. Finally, State of Michigan Retirement System lifted its stake in shares of Federated Hermes by 1.7% during the 1st quarter. State of Michigan Retirement System now owns 17,776 shares of the company's stock valued at $1,008,000 after buying an additional 300 shares in the last quarter. 75.94% of the stock is owned by hedge funds and other institutional investors.

Federated Hermes Stock Up 0.2%

Shares of FHI stock opened at $64.26 on Tuesday. The stock has a market cap of $4.80 billion, a P/E ratio of 11.94, a PEG ratio of 1.50 and a beta of 0.65. Federated Hermes, Inc. has a 52 week low of $46.66 and a 52 week high of $67.20. The company has a quick ratio of 1.89, a current ratio of 2.59 and a debt-to-equity ratio of 0.28. The company's fifty day simple moving average is $59.40 and its two-hundred day simple moving average is $57.08.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its quarterly earnings data on Thursday, July 30th. The company reported $1.38 earnings per share for the quarter, beating analysts' consensus estimates of $1.19 by $0.19. Federated Hermes had a return on equity of 34.03% and a net margin of 21.30%.The firm had revenue of $502.78 million during the quarter, compared to analyst estimates of $488.34 million. During the same quarter last year, the business posted $1.16 earnings per share. The business's quarterly revenue was up 18.3% compared to the same quarter last year. Analysts predict that Federated Hermes, Inc. will post 5.43 EPS for the current fiscal year.

Federated Hermes Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, August 14th. Investors of record on Friday, August 7th were paid a dividend of $0.38 per share. The ex-dividend date of this dividend was Friday, August 7th. This represents a $1.52 dividend on an annualized basis and a yield of 2.4%. Federated Hermes's dividend payout ratio is presently 28.25%.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on FHI. Wall Street Zen lowered Federated Hermes from a "buy" rating to a "hold" rating in a research note on Sunday, August 9th. JPMorgan Chase & Co. lowered their price objective on Federated Hermes from $56.00 to $53.00 and set an "underweight" rating on the stock in a research report on Monday, May 4th. Weiss Ratings raised Federated Hermes from a "buy (b)" rating to a "buy (b+)" rating in a research note on Friday, July 31st. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and set a $58.00 target price on shares of Federated Hermes in a research report on Monday, August 3rd. Finally, TD Cowen decreased their target price on Federated Hermes from $58.00 to $54.00 and set a "hold" rating on the stock in a research note on Monday, May 4th. Two research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $57.40.

Insiders Place Their Bets

In other Federated Hermes news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the firm's stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $57.34, for a total transaction of $513,193.00. Following the completion of the transaction, the chief executive officer owned 151,276 shares in the company, valued at $8,674,165.84. This trade represents a 5.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. 4.20% of the stock is owned by corporate insiders.

Federated Hermes Profile

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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