MFA Wealth Advisors LLC Sells 1,604,551 Shares of Federated Hermes, Inc. (NYSE:FHI)

MFA Wealth Advisors LLC significantly reduced its holdings in Federated Hermes, Inc. (NYSE:FHI) by 98.6% in the fourth quarter, as revealed in its latest SEC filing. Following this sale, the fund retains ownership of 23,550 shares. This divestment translates to a value of approximately $968,000 in Federated Hermes stock at the end of the reporting period.

Institutional Investor Activity

In recent months, various other institutional investors and hedge funds have also adjusted their positions in Federated Hermes. For instance, Charles Schwab Investment Management Inc. enhanced its stake by 24.8% during the third quarter, now holding 769,167 shares valued at about $28,282,000 after acquiring an additional 152,926 shares. Similarly, Barclays PLC increased its holdings by an impressive 228.6%, resulting in ownership of 215,650 shares worth $7,930,000 after adding 150,017 shares. FMR LLC raised its stake by 2.5%, holding a total of 5,666,335 shares valued at $208,351,000 following an addition of 137,245 shares. Victory Capital Management Inc. boosted its investment by 387.6% in the third quarter, amassing 159,561 shares worth $5,867,000 after acquiring 126,840 shares. Geode Capital Management LLC also increased its stake, now owning 1,250,182 shares valued at $45,982,000 after an addition of 92,643 shares. Notably, 75.94% of Federated Hermes’s stock is currently owned by hedge funds and other institutional investors.

Stock Performance Analysis

On Monday, shares of NYSE:FHI opened at $38.79. The company boasts a quick ratio of 2.03 and a current ratio of 2.70, alongside a relatively low debt-to-equity ratio of 0.32. With a market capitalization of $3.17 billion, its price-to-earnings ratio sits at 12.16, and its price-to-earnings-growth ratio is 1.02, indicating some growth potential. Over the past year, Federated Hermes has experienced a 52-week low of $31.24 and a high of $43.92.

Federated Hermes recently reported its quarterly earnings, which exceeded analyst expectations. The company posted earnings of $1.04 per share for the last quarter, surpassing estimates of $0.96 by $0.08. The firm’s return on equity stands at 30.31%, and its net margin is 16.44%. Analysts' predictions estimate an earnings per share figure of 4.09 for the current fiscal year.

Dividend Announcement

Additionally, Federated Hermes disclosed plans for a quarterly dividend, scheduled for payment on February 14th. Investors recorded on February 7th will receive a dividend of $0.31 per share. The ex-dividend date is set for the same day, February 7th. This dividend equates to an annualized total of $1.24, culminating in a yield of 3.20%. Currently, the company maintains a dividend payout ratio of 38.87%.

Insider Transactions

In other notable news, Richard A. Novak, an insider at Federated Hermes, sold 1,363 shares on November 19th at an average price of $41.47, totaling $56,523. Following this transaction, he retains 53,837 shares valued at $2,232,620. Insider Paul A. Uhlman also sold 6,311 shares for $261,212 at an average price of $41.39, leaving him with 310,767 shares worth $12,862,646. This represents a slight decrease in their respective holdings. Over the past 90 days, insiders collectively sold 12,128 shares valued at $502,042, and insiders now own 3.70% of the company’s stock.

Analyst Forecasts

Research analysts have released various reports regarding Federated Hermes. For instance, Royal Bank of Canada adjusted its price target for the company from $42.00 to $39.00, maintaining a "sector perform" rating. UBS Group recently raised shares' price target from $39.00 to $40.00 while assigning a "neutral" rating. Despite these adjustments, some analysts downgraded the stock rating, with StockNews.com lowering its position from "strong-buy" to "buy". Deutsche Bank confirmed a "hold" rating while adjusting its target from $45.00 to $43.00. Overall, among the analysts covering the stock, one has a sell rating, three have holds, and three have buy ratings, reflecting a mixed review with an average target price of $42.00.

About Federated Hermes

Federated Hermes, Inc. is a publicly traded investment management firm that provides a broad range of services. Its clientele includes individual investors and various institutional entities such as banks, pension plans, and charitable organizations.

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