Federated Hermes, Inc. (NYSE:FHI) Receives Consensus Rating of 'Hold' from Analysts
Federated Hermes, Inc. (NYSE:FHI) has been given a consensus rating of "Hold" from six brokerages that cover the company, according to reports from MarketBeat Ratings. Among these brokerages, four analysts rated the stock as a hold, while two analysts issued buy ratings. The average twelve-month price target for Federated Hermes shares is currently $42.17.
Several equities research analysts have expressed their views on Federated Hermes. StockNews.com adjusted their rating on the shares from "strong-buy" to "buy" in a report released on November 26th. In a different report, TD Cowen upgraded the stock from a "hold" rating to a "buy," increasing the price target from $35.00 to $46.00 as noted on October 28th. JPMorgan Chase & Co. maintained a "neutral" rating while setting a price target of $42.00, which was revised down from an earlier target of $49.00, as confirmed in a report on January 7th. Similarly, Deutsche Bank reiterated a "hold" rating, adjusting their price objective from $45.00 to $43.00 as stated in a report on January 8th. Lastly, Royal Bank of Canada raised their price target on Federated Hermes from $36.00 to $39.00, assigning it a "sector perform" rating in a report dated October 28th.
Recent Stock Performance
The stock of Federated Hermes traded down by 2.3% recently. On Monday, shares opened at $38.39, with a twelve-month low of $31.24 and a high of $43.92. The company maintains a current ratio of 2.75 and a quick ratio of 2.03, alongside a debt-to-equity ratio of 0.32. Its market capitalization sits at $3.14 billion, with a price-to-earnings (P/E) ratio of 12.34 and a P/E/G ratio of 1.19. Additionally, the company's 50-day moving average is $41.59, while the 200-day moving average is $37.42.
Earnings Report
Federated Hermes recently reported its quarterly earnings on October 24th. The company achieved earnings per share (EPS) of $1.06 for the quarter, surpassing the analysts' consensus estimate of $0.92 by $0.14. The company's return on equity (ROE) was 29.85%, with a net margin of 16.62%. Federated Hermes reported revenue of $408.46 million for the quarter, slightly below analyst estimates of $410.26 million. Compared to the same period last year, the company’s revenue rose by 1.4%. Analysts anticipate the company will generate an EPS of 3.88 for the current fiscal year.
Dividend Information
The company also announced a quarterly dividend recently, which was paid on November 15th. The dividend was set at $0.31 for shareholders on record as of November 8th, with an ex-dividend date also noted as November 8th. This translates to an annualized dividend of $1.24, yielding a dividend rate of 3.23%. Currently, Federated Hermes' dividend payout ratio stands at 39.87%.
Insider Transactions
In insider activity, CEO Saker Anwar Nusseibeh sold 12,152 shares of Federated Hermes stock on November 4th, at an average price of $39.86, amounting to a total of approximately $484,378.72. Post-transaction, the CEO's remaining ownership comprises 179,096 shares valued at around $7.14 million. This transaction resulted in a 6.35% reduction in ownership. Furthermore, VP Paul A. Uhlman sold 6,311 shares on November 19th at an average price of $41.39, totaling around $261,212.29. After this sale, the VP now owns 310,767 shares worth approximately $12.86 million. In total, over the past ninety days, insiders have sold 29,280 shares valued at around $1.19 million and hold 3.70% of the company's total stock.
Institutional Investor Actions
In recent activity, numerous large investors have adjusted their positions in Federated Hermes. For instance, Los Angeles Capital Management LLC added a new stake in the company during the second quarter, valued at roughly $206,000. Acadian Asset Management LLC increased their holdings by 23.3%, owning 3,402 shares worth about $111,000 after buying 643 additional shares. Headlands Technologies LLC also raised its stake by 134.9%, owning 1,945 shares valued at $64,000 after acquiring an extra 1,117 shares. Additionally, American Century Companies Inc. boosted its holdings by 112.4%, now possessing 56,333 shares valued at $1.85 million. Lastly, DekaBank Deutsche Girozentrale acquired a new stake in Federated Hermes valued at approximately $120,000. Overall, institutional investors currently own 75.94% of the company’s stock.
About Federated Hermes
Federated Hermes, Inc. operates as a publicly owned investment manager. Through its subsidiaries, the company provides services to various clients, including high-net-worth individuals, banking institutions, investment companies, pension plans, profit-sharing plans, pooled investment vehicles, charitable organizations, governmental entities, and registered investment advisors.
Federated, Hermes, Stock