Federated Hermes (NYSE:FHI) Stock Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• FHI shares crossed above their 200-day moving average of $57.35, trading as high as $58.13, while the stock’s consensus price target is $57.80.
• Federated Hermes reported a strong third quarter, with adjusted EPS of $1.50 exceeding estimates and revenue rising 8.1% year over year to $507.33 million. Equity assets under management reached a record $110.5 billion, and the company declared a $0.38 quarterly dividend.
• Analyst sentiment remains mixed, with a consensus “Hold” rating; several firms lowered ratings or price targets, although Evercore maintained an “outperform” rating with a $65 target.

Federated Hermes, Inc. (NYSE:FHI - Get Free Report)'s stock price crossed above its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $57.35 and traded as high as $58.13. Federated Hermes shares last traded at $57.9860, with a volume of 1,008,147 shares traded.

Key Federated Hermes News

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Q3 earnings beat expectations: Adjusted earnings per diluted share rose to $1.50 from $1.34 a year earlier, exceeding the $1.42 analyst consensus by $0.08. Net income increased to $111.9 million from $104.1 million. Federated Hermes Q3 Earnings and Revenues Beat Estimates
• Positive Sentiment: Revenue also topped estimates: Quarterly revenue reached $507.33 million, above the $504.91 million consensus and up 8.1% year over year, signaling continued operating growth. Federated Hermes quarterly results
• Positive Sentiment: Record equity assets: Equity assets under management reached a record $110.5 billion, while total managed assets stood at $884.4 billion as of September 30. Higher assets can support management-fee revenue and indicate strong investment flows or market performance. Federated Hermes reports third quarter 2026 earnings
• Positive Sentiment: Dividend declared: The board approved a quarterly dividend of $0.38 per share, reinforcing shareholder returns and potentially supporting investor interest in the stock. Federated Hermes dividend announcement

Analyst Ratings Changes

Several research analysts have recently weighed in on FHI shares. Wall Street Zen lowered Federated Hermes from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. TD Cowen lowered their target price on shares of Federated Hermes from $60.00 to $56.00 and set a "hold" rating on the stock in a report on Monday, October 12th. Evercore reaffirmed an "outperform" rating and set a $65.00 price objective on shares of Federated Hermes in a report on Monday, August 10th. Weiss Ratings raised Federated Hermes from a "buy (b+)" rating to a "buy (a-)" rating in a research report on Friday, October 9th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "hold" rating and issued a $58.00 price target on shares of Federated Hermes in a report on Monday, August 3rd. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $57.80.

Federated Hermes Stock Performance

The company's 50-day moving average is $58.70 and its two-hundred day moving average is $57.35. The company has a market capitalization of $4.33 billion, a P/E ratio of 10.78, a PEG ratio of 1.50 and a beta of 0.66. The company has a quick ratio of 1.89, a current ratio of 2.59 and a debt-to-equity ratio of 0.28.

Federated Hermes (NYSE:FHI - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported $1.50 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.42 by $0.08. Federated Hermes had a net margin of 21.30% and a return on equity of 34.03%. The business had revenue of $507.33 million during the quarter, compared to analyst estimates of $504.91 million. During the same period in the previous year, the business posted $1.34 earnings per share. Federated Hermes's revenue for the quarter was up 8.1% on a year-over-year basis. Equities analysts anticipate that Federated Hermes, Inc. will post 5.51 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Federated Hermes

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in FHI. Rockefeller Capital Management L.P. raised its holdings in 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 purchasing an additional 194 shares in the last quarter. Nisa Investment Advisors LLC raised its stake in Federated Hermes by 1.5% in the third quarter. Nisa Investment Advisors LLC now owns 15,910 shares of the company's stock worth $897,000 after buying an additional 228 shares in the last quarter. Root Financial Partners LLC raised its stake in Federated Hermes by 71.0% in the first quarter. Root Financial Partners LLC now owns 571 shares of the company's stock worth $32,000 after buying an additional 237 shares in the last quarter. State of Michigan Retirement System lifted its stake in shares of Federated Hermes by 1.7% in the 1st quarter. State of Michigan Retirement System now owns 17,776 shares of the company's stock valued at $1,008,000 after purchasing an additional 300 shares during the period. Finally, Oregon Public Employees Retirement Fund lifted its position in Federated Hermes by 2.7% during the 1st quarter. Oregon Public Employees Retirement Fund now owns 15,172 shares of the company's stock valued at $860,000 after acquiring an additional 400 shares during the period. 75.94% of the stock is currently owned by institutional investors.

About Federated Hermes

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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