Zacks Research Has Optimistic Outlook of FHI Q4 Earnings

Key Points

• Zacks Research has raised its Q4 2025 earnings per share estimate for Federated Hermes from $1.03 to $1.04, maintaining a "Strong-Buy" rating on the stock.
• The company reported Q2 earnings of $1.16 per share, beating consensus estimates and showing a 5.5% increase in quarterly revenue compared to the previous year.
• Several analysts have increased their price targets for Federated Hermes, with a consensus price target of $48.33 and a rating of "Moderate Buy" as more institutional investors acquire stakes in the company.

Federated Hermes, Inc. (NYSE:FHI - Free Report) - Research analysts at Zacks Research increased their Q4 2025 earnings per share (EPS) estimates for Federated Hermes in a report issued on Thursday, October 16th. Zacks Research analyst Team now anticipates that the company will post earnings of $1.04 per share for the quarter, up from their prior forecast of $1.03. Zacks Research has a "Strong-Buy" rating on the stock. The consensus estimate for Federated Hermes' current full-year earnings is $4.04 per share.

Federated Hermes (NYSE:FHI - Get Free Report) last issued its earnings results on Thursday, July 31st. The company reported $1.16 EPS for the quarter, beating analysts' consensus estimates of $0.99 by $0.17. The company had revenue of $424.84 million during the quarter, compared to the consensus estimate of $424.83 million. Federated Hermes had a return on equity of 32.30% and a net margin of 21.67%.Federated Hermes's quarterly revenue was up 5.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.96 earnings per share.

A number of other equities research analysts have also recently weighed in on the company. Royal Bank Of Canada lifted their price target on Federated Hermes from $45.00 to $51.00 and gave the company a "sector perform" rating in a report on Thursday, August 14th. Evercore ISI lifted their price target on Federated Hermes from $48.00 to $55.00 and gave the company an "outperform" rating in a report on Friday, September 5th. JPMorgan Chase & Co. lifted their price target on Federated Hermes from $54.00 to $55.00 and gave the company a "neutral" rating in a report on Tuesday, October 7th. Wall Street Zen cut Federated Hermes from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 2nd. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Federated Hermes in a report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $48.33.

Federated Hermes Stock Performance

FHI opened at $51.53 on Monday. The business's 50 day moving average is $52.60 and its 200-day moving average is $46.45. The stock has a market cap of $4.00 billion, a PE ratio of 11.42, a price-to-earnings-growth ratio of 0.58 and a beta of 0.80. The company has a current ratio of 3.37, a quick ratio of 2.32 and a debt-to-equity ratio of 0.31. Federated Hermes has a twelve month low of $35.05 and a twelve month high of $54.42.

Federated Hermes Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Friday, August 8th were issued a dividend of $0.34 per share. The ex-dividend date of this dividend was Friday, August 8th. This represents a $1.36 annualized dividend and a yield of 2.6%. Federated Hermes's payout ratio is presently 30.16%.

Institutional Investors Weigh In On Federated Hermes

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Burney Co. raised its holdings in Federated Hermes by 11.8% during the third quarter. Burney Co. now owns 135,132 shares of the company's stock worth $7,017,000 after purchasing an additional 14,253 shares in the last quarter. Blue Trust Inc. grew its position in Federated Hermes by 6.9% in the third quarter. Blue Trust Inc. now owns 7,456 shares of the company's stock worth $387,000 after buying an additional 479 shares during the last quarter. CWM LLC grew its position in Federated Hermes by 32.5% in the third quarter. CWM LLC now owns 6,162 shares of the company's stock worth $320,000 after buying an additional 1,512 shares during the last quarter. Pacer Advisors Inc. grew its position in Federated Hermes by 363.2% in the third quarter. Pacer Advisors Inc. now owns 17,444 shares of the company's stock worth $906,000 after buying an additional 13,678 shares during the last quarter. Finally, Harbor Capital Advisors Inc. grew its position in Federated Hermes by 861.5% in the third quarter. Harbor Capital Advisors Inc. now owns 2,923 shares of the company's stock worth $152,000 after buying an additional 2,619 shares during the last quarter. Institutional investors own 75.94% of the company's stock.

Federated Hermes Company Profile

Federated Hermes, Inc is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.

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