JPMorgan Chase & Co. Has Lowered Expectations for Federated Hermes (NYSE:FHI) Stock Price

Key Points

• JPMorgan cut its price target on Federated Hermes from $56 to $53 and kept an "underweight" rating, implying roughly a 1.73% downside from the prior close.
• Analyst sentiment is mixed with a consensus "Hold" and a mean target of $54.50 after several firms revised ratings and targets (two Buys, four Holds, one Sell).
• Federated Hermes beat quarterly EPS estimates ($1.27 vs. $1.20) with revenue up 13.1%, but shares trade around $53.94, an insider sold 72,392 shares, and institutional ownership is high (~75.9%).

Federated Hermes (NYSE:FHI - Get Free Report) had its price objective cut by equities researchers at JPMorgan Chase & Co. from $56.00 to $53.00 in a research note issued to investors on Monday,Benzinga reports. The firm currently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s price target indicates a potential downside of 1.73% from the stock's previous close.

Several other brokerages have also issued reports on FHI. Weiss Ratings reissued a "buy (b)" rating on shares of Federated Hermes in a research note on Tuesday, April 21st. Wall Street Zen lowered shares of Federated Hermes from a "buy" rating to a "hold" rating in a research note on Saturday. Royal Bank Of Canada reiterated a "sector perform" rating and set a $56.00 target price on shares of Federated Hermes in a research report on Tuesday, April 21st. TD Cowen reduced their price target on shares of Federated Hermes from $58.00 to $54.00 and set a "hold" rating for the company in a report on Monday. Finally, Argus raised shares of Federated Hermes to a "hold" rating in a research note on Monday, February 2nd. 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 stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $54.50.

Federated Hermes Trading Down 0.3%

Shares of NYSE FHI traded down $0.19 during trading on Monday, reaching $53.94. The company had a trading volume of 1,263,415 shares, compared to its average volume of 766,163. The company's fifty day moving average price is $56.63 and its 200-day moving average price is $53.46. Federated Hermes has a 12 month low of $41.04 and a 12 month high of $59.05. The stock has a market cap of $4.10 billion, a P/E ratio of 10.45, a PEG ratio of 1.89 and a beta of 0.67. The company has a quick ratio of 2.30, a current ratio of 3.28 and a debt-to-equity ratio of 0.29.

Federated Hermes (NYSE:FHI - Get Free Report) last released 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 firm had revenue of $478.96 million for the quarter, compared to analyst estimates of $475.22 million. During the same quarter in the previous year, the company posted $1.25 EPS. The business's revenue was up 13.1% on a year-over-year basis. As a group, research analysts expect that Federated Hermes will post 5.08 earnings per share for the current year.

Insider Buying and Selling

In related news, VP Paul A. Uhlman sold 72,392 shares of the stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $56.23, for a total value of $4,070,602.16. Following the transaction, the vice president owned 263,987 shares of the company's stock, valued at $14,843,989.01. This represents a 21.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 4.20% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Federated Hermes

Several large investors have recently made changes to their positions in FHI. State of Michigan Retirement System grew its position in Federated Hermes by 1.7% in the 1st quarter. State of Michigan Retirement System now owns 17,776 shares of the company's stock worth $1,008,000 after purchasing an additional 300 shares during the period. Principal Financial Group Inc. grew its position in shares of Federated Hermes by 3.9% during the 1st quarter. Principal Financial Group Inc. now owns 162,941 shares of the company's stock valued at $9,240,000 after acquiring an additional 6,045 shares during the period. Fifth Third Bancorp grew its position in shares of Federated Hermes by 4,178.2% during the 1st quarter. Fifth Third Bancorp now owns 25,327 shares of the company's stock valued at $1,436,000 after acquiring an additional 24,735 shares during the period. Sequoia Financial Advisors LLC grew its position in shares of Federated Hermes by 9.1% during the 1st quarter. Sequoia Financial Advisors LLC now owns 38,189 shares of the company's stock valued at $2,166,000 after acquiring an additional 3,176 shares during the period. Finally, Hsbc Holdings PLC grew its position in shares of Federated Hermes by 51.1% during the 1st quarter. Hsbc Holdings PLC now owns 35,245 shares of the company's stock valued at $2,008,000 after acquiring an additional 11,920 shares during the period. 75.94% of the stock is currently owned by hedge funds and other institutional investors.

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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