Morningstar Investment Management LLC Grows Holdings in Federated Hermes, Inc. $FHI

Key Points

• Morningstar Investment Management boosted its stake in Federated Hermes by 82.6% in the first quarter, and institutional ownership remains high at 75.94% of the stock.
• Analysts are generally cautious on FHI: the consensus rating is Hold with an average price target of $55.75, while several firms recently trimmed targets or downgraded the shares.
• Federated Hermes reported better-than-expected quarterly results with EPS of $1.27 and revenue of $478.96 million, and it also raised its quarterly dividend to $0.38 per share.

Morningstar Investment Management LLC grew its stake in shares of Federated Hermes, Inc. (NYSE:FHI - Free Report) by 82.6% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 39,895 shares of the company's stock after buying an additional 18,047 shares during the quarter. Morningstar Investment Management LLC owned 0.05% of Federated Hermes worth $2,262,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Jones Financial Companies Lllp increased its stake in Federated Hermes by 236.0% in the first quarter. Jones Financial Companies Lllp now owns 8,890 shares of the company's stock valued at $362,000 after acquiring an additional 6,244 shares during the last quarter. United Services Automobile Association bought a new stake in Federated Hermes during the first quarter worth about $220,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in 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 worth $9,769,000 after purchasing an additional 24,960 shares during the last quarter. American Century Companies Inc. boosted its holdings in shares of Federated Hermes by 1.9% in the 2nd quarter. American Century Companies Inc. now owns 33,246 shares of the company's stock worth $1,474,000 after purchasing an additional 614 shares in the last quarter. Finally, Prudential Financial Inc. boosted its holdings in shares of Federated Hermes by 4.9% in the 2nd quarter. Prudential Financial Inc. now owns 11,744 shares of the company's stock worth $497,000 after purchasing an additional 547 shares in the last quarter. 75.94% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on FHI shares. TD Cowen reduced their price objective on Federated Hermes from $58.00 to $54.00 and set a "hold" rating on the stock in a research report on Monday, May 4th. Royal Bank Of Canada upped their target price on Federated Hermes from $54.00 to $57.00 and gave the stock a "sector perform" rating in a research note on Thursday, July 2nd. Wall Street Zen cut shares of Federated Hermes from a "buy" rating to a "hold" rating in a research report on Saturday, May 2nd. Evercore restated an "outperform" rating and issued a $59.00 price objective on shares of Federated Hermes in a report on Monday, June 8th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Federated Hermes from $56.00 to $53.00 and set an "underweight" rating on the stock in a report on Monday, May 4th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, Federated Hermes has a consensus rating of "Hold" and an average price target of $55.75.

Insider Transactions at Federated Hermes

In related news, CEO Saker Anwar Nusseibeh sold 8,950 shares of Federated Hermes stock in a transaction dated Monday, June 8th. The shares were 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 directly owned 151,276 shares of the company's stock, valued at $8,674,165.84. This trade represents a 5.59% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, VP Bryan M. Burke sold 4,000 shares of the business's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $54.20, for a total transaction of $216,800.00. Following the sale, the vice president directly owned 74,921 shares in the company, valued at $4,060,718.20. The trade was a 5.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 4.20% of the company's stock.

Federated Hermes Trading Up 0.9%

Shares of FHI opened at $57.83 on Friday. Federated Hermes, Inc. has a 1-year low of $46.66 and a 1-year high of $60.77. The company has a current ratio of 3.28, a quick ratio of 2.73 and a debt-to-equity ratio of 0.29. The firm's 50-day moving average price is $57.18 and its 200-day moving average price is $56.01. The firm has a market capitalization of $4.39 billion, a price-to-earnings ratio of 11.21, a PEG ratio of 1.56 and a beta of 0.65.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $1.27 EPS for the quarter, topping the consensus estimate of $1.20 by $0.07. Federated Hermes had a net margin of 21.47% and a return on equity of 33.90%. The business had revenue of $478.96 million during the quarter, compared to analyst estimates of $475.22 million. During the same period last year, the business posted $1.25 earnings per share. Federated Hermes's quarterly revenue was up 13.1% compared to the same quarter last year. Sell-side analysts anticipate that Federated Hermes, Inc. will post 5.24 EPS for the current year.

Federated Hermes Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 8th were paid a $0.38 dividend. This represents a $1.52 annualized dividend and a dividend yield of 2.6%. The ex-dividend date 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 (DPR) is 29.46%.

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.

Want to see what other hedge funds are holding FHI? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Federated Hermes, Inc. (NYSE:FHI - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.