Wall Street Zen Downgrades Federated Hermes (NYSE:FHI) to Hold

Key Points

• Wall Street Zen downgraded Federated Hermes to “Hold” from “Buy.” The broader analyst consensus is also “Hold,” with five Hold, two Buy, and one Sell rating and an average price target of $56.20.
• Federated Hermes reported strong quarterly results, with earnings per share of $1.38 versus the $1.19 consensus estimate and revenue of $502.78 million, up 18.3% year over year.
• FHI shares opened at $63.13, above the consensus target, while institutional investors own 75.94% of the stock. CEO Saker Anwar Nusseibeh recently sold 8,950 shares, reducing his direct ownership by 5.59%.

Federated Hermes (NYSE:FHI - Get Free Report) was downgraded by analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report released on Sunday.

Several other research firms also recently commented on FHI. TD Cowen decreased their price objective on Federated Hermes from $58.00 to $54.00 and set a "hold" rating on the stock in a report on Monday, May 4th. Royal Bank Of Canada increased their target price on Federated Hermes from $54.00 to $57.00 and gave the company a "sector perform" rating in a report on Thursday, July 2nd. JPMorgan Chase & Co. reduced their price target on Federated Hermes from $56.00 to $53.00 and set an "underweight" rating on the stock in a research report on Monday, May 4th. Evercore reaffirmed an "outperform" rating and issued a $59.00 price target on shares of Federated Hermes in a research note on Monday, June 8th. Finally, Weiss Ratings upgraded Federated Hermes from a "buy (b)" rating to a "buy (b+)" rating in a research report on Friday, July 31st. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $56.20.

Federated Hermes Price Performance

FHI stock opened at $63.13 on Friday. The company has a debt-to-equity ratio of 0.28, a quick ratio of 2.73 and a current ratio of 2.59. Federated Hermes has a 52 week low of $46.66 and a 52 week high of $67.20. The firm's fifty day moving average is $58.57 and its 200 day moving average is $56.64. The firm has a market cap of $4.79 billion, a P/E ratio of 11.73, a P/E/G ratio of 1.48 and a beta of 0.65.

Federated Hermes (NYSE:FHI - Get Free Report) last posted its quarterly earnings results on Thursday, July 30th. The company reported $1.38 earnings per share for the quarter, topping the consensus estimate of $1.19 by $0.19. The business had revenue of $502.78 million during the quarter, compared to the consensus estimate of $488.34 million. Federated Hermes had a net margin of 21.30% and a return on equity of 34.03%. The firm's revenue for the quarter was up 18.3% on a year-over-year basis. During the same period in the previous year, the firm posted $1.16 earnings per share. Research analysts predict that Federated Hermes will post 5.43 earnings per share for the current year.

Insider Activity at Federated Hermes

In other news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $57.34, for a total transaction of $513,193.00. Following the completion of the sale, the chief executive officer directly owned 151,276 shares in the company, valued at approximately $8,674,165.84. This represents a 5.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Schneider Downs Wealth Management Advisors LP raised its holdings 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 worth $137,992,000 after purchasing an additional 2,577,442 shares in the last quarter. Invesco Ltd. lifted its position in shares of Federated Hermes by 29.6% in the 3rd quarter. Invesco Ltd. now owns 2,939,908 shares of the company's stock worth $152,669,000 after purchasing an additional 670,643 shares during the period. Victory Capital Management Inc. boosted its stake in shares of Federated Hermes by 78.9% during the 4th quarter. Victory Capital Management Inc. now owns 1,394,622 shares of the company's stock valued at $72,618,000 after purchasing an additional 615,130 shares in the last quarter. AQR Capital Management LLC increased its position 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 buying an additional 498,202 shares during the period. Finally, LSV Asset Management increased its position in shares of Federated Hermes by 20.4% during the fourth quarter. LSV Asset Management now owns 2,890,276 shares of the company's stock valued at $150,497,000 after buying an additional 489,275 shares during the period. 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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