Federated Hermes, Inc. (NYSE:FHI) Receives a Consensus Rating of 'Hold' from Analysts

Federated Hermes, Inc. (NYSE:FHI) has been given a consensus rating of "Hold" by the six brokerages currently covering the company, according to MarketBeat Ratings. Among these analysts, four have rated the stock as a hold, while two have assigned it a buy rating. The average target price set by these brokerages for the stock over the next twelve months stands at $42.17.

Recent comments from equities research analysts provide further insight into the stock's performance. For instance, StockNews.com downgraded Federated Hermes from a "strong-buy" to a "buy" rating in a report published on November 26. On the other hand, TD Cowen shifted its rating from "hold" to "buy" and raised its price target from $35.00 to $46.00 in a note on October 28. Additionally, JPMorgan Chase & Co. maintained a "neutral" rating but lowered the target price from $49.00 to $42.00 in a report published on January 7. Meanwhile, Deutsche Bank reaffirmed a “hold” rating, adjusting its price objective down from $45.00 to $43.00 in a January 8 research report. Finally, Royal Bank of Canada adjusted its price target for Federated Hermes from $36.00 to $39.00 while also giving the stock a "sector perform" rating on October 28.

Recent Performance of Federated Hermes

On Monday, Federated Hermes shares opened at $38.39. Over the past year, the stock has experienced a low of $31.24 and a high of $43.92. The financial health of the company includes a current ratio of 2.75, a quick ratio of 2.03, and a debt-to-equity ratio of 0.32. With a market capitalization of $3.14 billion, the company has a P/E ratio of 12.34 and a P/E/G ratio of 1.19, showcasing its earnings performance compared to its growth rate. The 50-day moving average stands at $41.59, while the 200-day moving average is at $37.42.

Earnings Report Highlights

In its latest quarterly earnings report released on October 24, Federated Hermes announced earnings per share (EPS) of $1.06, surpassing analyst expectations of $0.92 by a margin of $0.14. The company achieved a return on equity of 29.85% and a net margin of 16.62%. Revenue for the quarter totaled $408.46 million, which is slightly below the anticipated figure of $410.26 million. Comparatively, in the same quarter of the previous year, the EPS was $0.86, indicating a 1.4% year-over-year increase in revenue. Looking ahead, analysts expect Federated Hermes to report an EPS of 3.88 for the current fiscal year.

Dividend Payment Information

Furthermore, the company recently declared a quarterly dividend, which was issued on November 15 to shareholders on record as of November 8. The dividend per share was set at $0.31, resulting in an annualized dividend of $1.24 and a yield of 3.23%. Federated Hermes currently has a dividend payout ratio of 39.87%, indicating a healthy balance between earnings and dividends.

Insider Transactions

Notable insider activity includes CEO Saker Anwar Nusseibeh selling 12,152 shares of company stock on November 4 at an average price of $39.86, totalling roughly $484,378.72. Following this sale, Nusseibeh retains 179,096 shares, estimated to be worth approximately $7.14 million, which represents a reduction of 6.35% in ownership. Another insider, Paul A. Uhlman, the Vice President, sold 6,311 shares on November 19 at an average price of $41.39, bringing in $261,212.29 and decreasing his ownership by 1.99%. In total, insiders sold 29,280 shares valued at $1.19 million over the last ninety days. Currently, company insiders hold about 3.70% of the company’s shares.

Institutional Investor Activity

Many institutional investors have adjusted their positions in Federated Hermes recently. Los Angeles Capital Management LLC, for example, acquired a new stake in the firm valued at roughly $206,000 during the second quarter. Acadian Asset Management LLC increased its holdings by 23.3%, now owning 3,402 shares worth $111,000 after purchasing an additional 643 shares in that quarter. Similarly, Headlands Technologies LLC raised its position by 134.9%, bringing its ownership to 1,945 shares valued at $64,000. American Century Companies Inc. doubled its holdings to 56,333 shares worth about $1.85 million in the same period. DekaBank Deutsche Girozentrale also acquired a new stake in the company worth approximately $120,000. Notably, institutional investors own 75.94% of Federated Hermes' stock.

About Federated Hermes, Inc.

Federated Hermes, Inc. operates as a publicly traded investment management firm. Through its various subsidiaries, it serves a diverse clientele, including high-net-worth individuals and various institutional investors such as banks, pension plans, and charitable organizations.

Stocks, Investment, Earnings