Ritholtz Wealth Management Boosts Holdings in Federated Hermes, Inc. $FHI

Key Points

• Ritholtz Wealth Management increased its stake in Federated Hermes by 21.9% in the first quarter, buying 18,653 additional shares and bringing its total holding to 103,840 shares worth about $5.89 million.
• Federated Hermes reported better-than-expected quarterly results, with EPS of $1.27 versus the $1.20 estimate and revenue of $478.96 million, up 13.1% year over year.
• The company raised its quarterly dividend to $0.38 per share from $0.34, while analysts currently hold a consensus rating of “Hold” with an average price target of $55.00.

Ritholtz Wealth Management grew its stake in Federated Hermes, Inc. (NYSE:FHI - Free Report) by 21.9% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 103,840 shares of the company's stock after purchasing an additional 18,653 shares during the quarter. Ritholtz Wealth Management owned approximately 0.14% of Federated Hermes worth $5,889,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of the stock. Schneider Downs Wealth Management Advisors LP lifted its stake 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 buying an additional 2,577,442 shares in the last quarter. Victory Capital Management Inc. increased its stake in Federated Hermes by 2,410.2% during the 3rd quarter. Victory Capital Management Inc. now owns 779,492 shares of the company's stock worth $40,479,000 after buying an additional 748,439 shares in the last quarter. Invesco Ltd. raised its holdings 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 valued at $152,669,000 after acquiring an additional 670,643 shares during the last quarter. AQR Capital Management LLC raised 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 acquiring an additional 498,202 shares during the last quarter. Finally, LSV Asset Management lifted its position 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 valued at $150,497,000 after acquiring an additional 489,275 shares in the last quarter. Hedge funds and other institutional investors own 75.94% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on FHI. Wall Street Zen lowered Federated Hermes from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. 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 note on Monday, May 4th. JPMorgan Chase & Co. decreased their price objective on Federated Hermes from $56.00 to $53.00 and set an "underweight" rating on the stock in a report on Monday, May 4th. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Federated Hermes in a research note on Tuesday, April 21st. Finally, Royal Bank Of Canada dropped their target price on shares of Federated Hermes from $56.00 to $54.00 and set a "sector perform" rating for the company in a report 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 company's stock. Based on data from MarketBeat, Federated Hermes presently has a consensus rating of "Hold" and an average price target of $55.00.

Federated Hermes Trading Down 4.9%

FHI opened at $56.35 on Thursday. 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 company's 50 day simple moving average is $56.61 and its two-hundred day simple moving average is $55.25. Federated Hermes, Inc. has a 1-year low of $43.25 and a 1-year high of $60.17. The firm has a market capitalization of $4.28 billion, a price-to-earnings ratio of 10.92, a price-to-earnings-growth ratio of 2.12 and a beta of 0.65.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its earnings results on Thursday, April 30th. The company reported $1.27 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.07. Federated Hermes had a return on equity of 33.90% and a net margin of 21.47%.The business had revenue of $478.96 million for the quarter, compared to analysts' expectations of $475.22 million. During the same period in the previous year, the firm posted $1.25 EPS. The business's revenue for the quarter was up 13.1% compared to the same quarter last year. Analysts expect that Federated Hermes, Inc. will post 5.1 EPS for the current fiscal year.

Federated Hermes Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 8th were issued a $0.38 dividend. This represents a $1.52 annualized dividend and a yield of 2.7%. The ex-dividend date was Friday, May 8th. This is an increase from Federated Hermes's previous quarterly dividend of $0.34. Federated Hermes's dividend payout ratio (DPR) is currently 29.46%.

Insiders Place Their Bets

In other news, CEO Saker Anwar Nusseibeh sold 8,950 shares of Federated Hermes stock in a transaction 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 transaction, the chief executive officer owned 151,276 shares in the company, valued at $8,674,165.84. The trade was a 5.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, 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 shares were sold at an average price of $54.20, for a total transaction of $216,800.00. Following the transaction, the vice president directly owned 74,921 shares in the company, valued at approximately $4,060,718.20. The trade was a 5.07% decrease in their position. The SEC filing for this sale provides additional information. 4.20% of the stock is owned by company insiders.

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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