Jefferies Financial Group Inc. Sells 40,451 Shares of Federated Hermes, Inc. $FHI

Key Points

• Jefferies Financial Group cut its stake in Federated Hermes by 71.8% in the fourth quarter, selling 40,451 shares and leaving it with 15,889 shares valued at about $827,000.
• Wall Street sentiment on FHI remains cautious: the stock has a consensus rating of “Hold” and an average price target of $54.00, with several firms recently lowering ratings or trimming targets.
• Federated Hermes reported better-than-expected quarterly results and raised its dividend to $0.38 per share, implying a 2.7% yield; the company also posted 13.1% year-over-year revenue growth.

Jefferies Financial Group Inc. decreased its holdings in Federated Hermes, Inc. (NYSE:FHI - Free Report) by 71.8% in the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 15,889 shares of the company's stock after selling 40,451 shares during the period. Jefferies Financial Group Inc.'s holdings in Federated Hermes were worth $827,000 at the end of the most recent reporting period.

A number of other hedge funds have also recently made changes to their positions in the business. AQR Capital Management LLC boosted its stake in shares of Federated Hermes by 20.1% in the second quarter. AQR Capital Management LLC now owns 2,978,885 shares of the company's stock worth $132,024,000 after acquiring an additional 498,202 shares during the period. Invesco Ltd. boosted its stake in shares of Federated Hermes by 29.6% in the third quarter. Invesco Ltd. now owns 2,939,908 shares of the company's stock worth $152,669,000 after acquiring an additional 670,643 shares during the period. LSV Asset Management boosted its stake in shares of Federated Hermes by 20.4% in the fourth quarter. LSV Asset Management now owns 2,890,276 shares of the company's stock worth $150,497,000 after acquiring an additional 489,275 shares during the period. Schneider Downs Wealth Management Advisors LP boosted its stake in shares of Federated Hermes by 3,229.0% in the third 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 during the period. Finally, Allianz Asset Management GmbH boosted its stake in shares of Federated Hermes by 19.9% in the third quarter. Allianz Asset Management GmbH now owns 1,008,221 shares of the company's stock worth $52,357,000 after acquiring an additional 167,225 shares during the period. Institutional investors own 75.94% of the company's stock.

Wall Street Analyst Weigh In

FHI has been the subject of a number of recent analyst reports. Wall Street Zen lowered Federated Hermes from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Argus raised Federated Hermes to a "hold" rating in a research note on Monday, February 2nd. Weiss Ratings reissued a "buy (b)" rating on shares of Federated Hermes in a research note on Tuesday, April 21st. TD Cowen dropped their price target on Federated Hermes from $58.00 to $54.00 and set a "hold" rating for the company in a research note on Monday, May 4th. Finally, Royal Bank Of Canada dropped their price target on Federated Hermes from $56.00 to $54.00 and set a "sector perform" rating for the company in a research note on Wednesday, May 6th. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus target price of $54.00.

Insider Activity at Federated Hermes

In other news, VP Bryan M. Burke sold 4,000 shares of the firm's stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total value of $216,800.00. Following the completion of the sale, the vice president directly owned 74,921 shares of the company's stock, valued at $4,060,718.20. This trade represents a 5.07% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, VP Paul A. Uhlman sold 72,392 shares of the firm's stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $56.23, for a total value of $4,070,602.16. Following the completion of the sale, the vice president directly owned 263,987 shares of the company's stock, valued at $14,843,989.01. The trade was a 21.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.20% of the stock is owned by company insiders.

Federated Hermes Price Performance

Shares of Federated Hermes stock opened at $56.05 on Friday. The stock has a 50 day moving average of $56.22 and a 200 day moving average of $54.15. Federated Hermes, Inc. has a 12 month low of $41.55 and a 12 month high of $59.05. The firm has a market cap of $4.25 billion, a PE ratio of 10.86, a PEG ratio of 1.99 and a beta of 0.67. The company has a current ratio of 3.28, a quick ratio of 2.73 and a debt-to-equity ratio of 0.29.

Federated Hermes (NYSE:FHI - Get Free Report) last announced its quarterly earnings results on Thursday, April 30th. The company reported $1.27 EPS for the quarter, beating analysts' consensus estimates of $1.20 by $0.07. Federated Hermes had a return on equity of 33.90% and a net margin of 21.47%.The company had revenue of $478.96 million during the quarter, compared to analyst estimates of $475.22 million. During the same period in the prior year, the company earned $1.25 earnings per share. The firm's revenue was up 13.1% on a year-over-year basis. On average, research analysts expect that Federated Hermes, Inc. will post 5.1 EPS for the current fiscal year.

Federated Hermes Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Stockholders of record on Friday, May 8th were paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Friday, May 8th. This is a positive change from Federated Hermes's previous quarterly dividend of $0.34. Federated Hermes's dividend payout ratio is 29.46%.

Federated Hermes Company 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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