Short Interest in Federated Hermes, Inc. (NYSE:FHI) Declines By 20.9%

Key Points

• Short interest declined 20.9% — short interest fell to 2,747,264 shares as of March 31 (about 3.8% of shares short) with a days-to-cover ratio of 3.2.
• Quarterly results beat expectations — on Jan. 29 Federated Hermes reported EPS of $1.39 versus $1.20 expected and revenue of $482.8M (up 13.7% year-over-year), with a 34.25% ROE and 22.4% net margin.
• Insider sale and mixed analyst views — VP Paul A. Uhlman sold 72,392 shares (~$4.07M), while analysts' consensus is a "Hold" with an average price target of $55 (two Buys, four Holds, one Sell).

Federated Hermes, Inc. (NYSE:FHI - Get Free Report) was the recipient of a significant decline in short interest in March. As of March 31st, there was short interest totaling 2,747,264 shares, a decline of 20.9% from the March 15th total of 3,473,140 shares. Based on an average trading volume of 850,122 shares, the days-to-cover ratio is presently 3.2 days. Approximately 3.8% of the shares of the stock are short sold.

Federated Hermes Trading Down 1.7%

FHI traded down $0.99 during trading on Thursday, reaching $57.01. The company had a trading volume of 973,742 shares, compared to its average volume of 821,999. The firm's 50-day simple moving average is $56.07 and its 200 day simple moving average is $53.07. The company has a market cap of $4.33 billion, a price-to-earnings ratio of 11.62, a PEG ratio of 2.03 and a beta of 0.67. Federated Hermes has a 12-month low of $35.88 and a 12-month high of $59.05. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.30 and a current ratio of 2.75.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its quarterly earnings results on Thursday, January 29th. The company reported $1.39 earnings per share for the quarter, topping analysts' consensus estimates of $1.20 by $0.19. The firm had revenue of $482.83 million for the quarter, compared to analysts' expectations of $468.45 million. Federated Hermes had a return on equity of 34.25% and a net margin of 22.40%.Federated Hermes's revenue was up 13.7% on a year-over-year basis. During the same quarter last year, the business posted $1.04 EPS. Equities research analysts anticipate that Federated Hermes will post 4.04 earnings per share for the current year.

Federated Hermes Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, February 6th were paid a $0.34 dividend. The ex-dividend date of this dividend was Friday, February 6th. This represents a $1.36 dividend on an annualized basis and a yield of 2.4%. Federated Hermes's dividend payout ratio (DPR) is currently 26.46%.

Analysts Set New Price Targets

Several equities research analysts have commented on the stock. Wall Street Zen upgraded shares of Federated Hermes from a "hold" rating to a "buy" rating in a research report on Saturday, April 4th. TD Cowen reiterated a "hold" rating on shares of Federated Hermes in a research report on Thursday, April 9th. Royal Bank Of Canada reiterated a "sector perform" rating and issued a $55.00 price target (up from $54.00) on shares of Federated Hermes in a research report on Tuesday, February 3rd. JPMorgan Chase & Co. cut shares of Federated Hermes from a "neutral" rating to an "underweight" rating and boosted their price target for the stock from $55.00 to $56.00 in a research report on Thursday. Finally, Argus raised Federated Hermes to a "hold" rating in a research note on Monday, February 2nd. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $55.00.

Insider Buying and Selling

In other Federated Hermes news, VP Paul A. Uhlman sold 72,392 shares of the business's stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $56.23, for a total value of $4,070,602.16. Following the sale, the vice president directly owned 263,987 shares in the company, valued at approximately $14,843,989.01. The trade was a 21.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 4.20% of the company's stock.

Hedge Funds Weigh In On Federated Hermes

Several institutional investors and hedge funds have recently bought and sold shares of the business. AQR Capital Management LLC grew its stake in Federated Hermes by 1.7% during the 4th quarter. AQR Capital Management LLC now owns 3,036,239 shares of the company's stock valued at $158,097,000 after acquiring an additional 50,067 shares in the last quarter. Charles Schwab Investment Management Inc. grew its stake in Federated Hermes by 0.4% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,032,060 shares of the company's stock valued at $157,879,000 after acquiring an additional 12,348 shares in the last quarter. Invesco Ltd. grew its stake in Federated Hermes by 29.6% during the 3rd 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 in the last quarter. LSV Asset Management grew its stake in Federated Hermes by 20.4% during the 4th 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. Finally, Schneider Downs Wealth Management Advisors LP grew its stake in Federated Hermes by 3,229.0% during 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 acquiring an additional 2,577,442 shares in the last quarter. Hedge funds and other institutional investors own 75.94% of the company's stock.

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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