Federated Hermes, Inc. $FHI Shares Bought by Teacher Retirement System of Texas

Key Points

• Teacher Retirement System of Texas raised its stake in Federated Hermes by 17.9% to 163,745 shares (about $8.53M) and institutional investors now own roughly 75.94% of the company as several large funds also increased positions.
• Federated Hermes beat Q4 expectations with $1.39 EPS vs. $1.20 estimate and revenue of $482.8M (up 13.7% YoY), reporting a 22.4% net margin and 34.25% return on equity.
• The firm pays a quarterly dividend of $0.34 (annualized $1.36, 2.4% yield) while analysts maintain a consensus "Hold" rating with a $55.25 price target, and a VP recently sold 72,392 shares.

Teacher Retirement System of Texas raised its holdings in Federated Hermes, Inc. (NYSE:FHI - Free Report) by 17.9% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 163,745 shares of the company's stock after acquiring an additional 24,863 shares during the period. Teacher Retirement System of Texas owned approximately 0.21% of Federated Hermes worth $8,526,000 at the end of the most recent quarter.

A number of other hedge funds also recently bought and sold shares of the business. AQR Capital Management LLC raised its holdings in Federated Hermes by 20.1% in the 2nd quarter. AQR Capital Management LLC now owns 2,978,885 shares of the company's stock valued at $132,024,000 after acquiring an additional 498,202 shares during the last quarter. Invesco Ltd. raised its holdings in Federated Hermes by 29.6% in the 3rd quarter. Invesco Ltd. now owns 2,939,908 shares of the company's stock valued at $152,669,000 after acquiring an additional 670,643 shares during the last quarter. Schneider Downs Wealth Management Advisors LP raised its holdings in Federated Hermes by 3,229.0% in the 3rd quarter. Schneider Downs Wealth Management Advisors LP now owns 2,657,263 shares of the company's stock valued at $137,992,000 after acquiring an additional 2,577,442 shares during the last quarter. LSV Asset Management raised its holdings in Federated Hermes by 22.1% in the 3rd quarter. LSV Asset Management now owns 2,401,001 shares of the company's stock valued at $124,684,000 after acquiring an additional 434,859 shares during the last quarter. Finally, Allianz Asset Management GmbH raised its holdings in Federated Hermes by 19.9% in the 3rd quarter. Allianz Asset Management GmbH now owns 1,008,221 shares of the company's stock valued at $52,357,000 after acquiring an additional 167,225 shares during the last quarter. Institutional investors and hedge funds own 75.94% of the company's stock.

Federated Hermes Stock Performance

Federated Hermes stock opened at $55.78 on Friday. The firm has a 50 day simple moving average of $56.49 and a 200-day simple moving average of $53.31. Federated Hermes, Inc. has a 1-year low of $38.35 and a 1-year high of $59.05. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.75 and a quick ratio of 2.30. The stock has a market cap of $4.24 billion, a price-to-earnings ratio of 10.85, a price-to-earnings-growth ratio of 1.97 and a beta of 0.67.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its quarterly earnings data on Thursday, January 29th. The company reported $1.39 earnings per share for the quarter, topping analysts' consensus estimates of $1.20 by $0.19. The firm had revenue of $482.83 million during the quarter, compared to analysts' expectations of $468.45 million. Federated Hermes had a net margin of 22.40% and a return on equity of 34.25%. The firm's quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter last year, the company posted $1.04 EPS. On average, analysts expect that Federated Hermes, Inc. will post 5.08 EPS for the current year.

Federated Hermes Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, February 6th were given a dividend of $0.34 per share. The ex-dividend date of this dividend was Friday, February 6th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.4%. Federated Hermes's dividend payout ratio (DPR) is presently 26.46%.

Analysts Set New Price Targets

Several analysts have recently weighed in on FHI shares. Royal Bank Of Canada reissued a "sector perform" rating and issued a $56.00 price target on shares of Federated Hermes in a research note on Tuesday. TD Cowen reissued a "hold" rating on shares of Federated Hermes in a research note on Thursday, April 9th. Argus raised shares of Federated Hermes to a "hold" rating in a research note on Monday, February 2nd. JPMorgan Chase & Co. cut shares of Federated Hermes from a "neutral" rating to an "underweight" rating and increased their price target for the company from $55.00 to $56.00 in a research note on Thursday, April 16th. Finally, Wall Street Zen raised shares of Federated Hermes from a "hold" rating to a "buy" rating in a research note on Saturday, April 4th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $55.25.

Insider Buying and Selling at Federated Hermes

In related news, VP Paul A. Uhlman sold 72,392 shares of the stock in a transaction that occurred on 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 completion of 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 position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 4.20% of the company's stock.

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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