Federated Hermes (NYSE:FHI) Reaches New 12-Month High - Should You Buy?

Key Points

• Federated Hermes reached a 52-week high of $67.38, while its latest cited trade was $66.02.
• Analyst views are mixed, with a consensus Hold rating and an average price target of $60.80, below the latest cited share price.
• Quarterly results beat expectations: earnings were $1.50 per share versus $1.42 expected, and revenue rose 8.1% year over year. The company also declared a $0.38 quarterly dividend, equivalent to a 2.4% yield.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) hit a new 52-week high during mid-day trading on Thursday. The company traded as high as $67.38 and last traded at $66.0150, with a volume of 5,672 shares traded. The stock had previously closed at $65.73.

Analysts Set New Price Targets

FHI has been the subject of several recent analyst reports. Zacks Research cut shares of Federated Hermes from a "strong-buy" rating to a "hold" rating in a research report on Friday, October 9th. Royal Bank Of Canada boosted their target price on shares of Federated Hermes from $60.00 to $63.00 and gave the company a "sector perform" rating in a report on Tuesday. Weiss Ratings upgraded shares of Federated Hermes from a "buy (b+)" rating to a "buy (a-)" rating in a report on Friday, October 9th. Wall Street Zen cut shares of Federated Hermes from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. Finally, JPMorgan Chase & Co. increased their price target on Federated Hermes from $54.00 to $56.00 and gave the stock an "underweight" rating in a report on Monday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Federated Hermes presently has a consensus rating of "Hold" and a consensus price target of $60.80.

Federated Hermes Trading Down 3.2%

The firm's 50-day moving average price is $58.55 and its 200 day moving average price is $57.54. The company has a market cap of $4.75 billion, a price-to-earnings ratio of 11.50, a P/E/G ratio of 1.80 and a beta of 0.67. The company has a current ratio of 2.48, a quick ratio of 1.89 and a debt-to-equity ratio of 0.27.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its quarterly earnings results on Thursday, October 29th. The company reported $1.50 earnings per share for the quarter, beating the consensus estimate of $1.42 by $0.08. The firm had revenue of $507.33 million during the quarter, compared to the consensus estimate of $504.91 million. Federated Hermes had a net margin of 21.28% and a return on equity of 33.94%. The business's revenue was up 8.1% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.34 earnings per share. As a group, equities analysts expect that Federated Hermes, Inc. will post 5.53 EPS for the current year.

Federated Hermes Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Friday, November 13th. Investors of record on Friday, November 6th will be paid a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Friday, November 6th. Federated Hermes's dividend payout ratio is 27.44%.

Institutional Investors Weigh In On Federated Hermes

Several hedge funds and other institutional investors have recently modified their holdings of the company. Rockefeller Capital Management L.P. grew its stake in shares of Federated Hermes by 24.2% in the 4th quarter. Rockefeller Capital Management L.P. now owns 996 shares of the company's stock worth $52,000 after acquiring an additional 194 shares in the last quarter. Kestra Private Wealth Services LLC raised its holdings in shares of Federated Hermes by 2.3% in the third quarter. Kestra Private Wealth Services LLC now owns 10,096 shares of the company's stock valued at $569,000 after purchasing an additional 227 shares during the last quarter. Nisa Investment Advisors LLC lifted its position in shares of Federated Hermes by 1.5% during the third quarter. Nisa Investment Advisors LLC now owns 15,910 shares of the company's stock valued at $897,000 after purchasing an additional 228 shares in the last quarter. Root Financial Partners LLC lifted its position in shares of Federated Hermes by 71.0% during the first quarter. Root Financial Partners LLC now owns 571 shares of the company's stock valued at $32,000 after purchasing an additional 237 shares in the last quarter. Finally, State of Michigan Retirement System boosted its holdings in Federated Hermes by 1.7% during the first 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 last quarter. Institutional investors own 75.94% of the company's stock.

Federated Hermes Company Profile

Federated Hermes, Inc is a global investment management company that provides asset management services to individuals, financial intermediaries, corporations, governments and other institutions. The company manages a range of investment strategies, including equity, fixed-income, money market, multi-asset, alternative and liquidity management products.

Its offerings are distributed through mutual funds, exchange-traded funds, separately managed accounts, collective investment trusts and institutional mandates.

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