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

As of January 13, 2025, Federated Hermes, Inc. (NYSE:FHI) has garnered a consensus rating of "Hold" from six brokerages currently assessing the company, according to reports from MarketBeat Ratings. Out of these, four analysts have assigned a hold rating, while two analysts have given a buy rating. The average price target over the next twelve months among these brokerages is set at $42.17.

Several equities research analysts have shared their insights on the stock. StockNews.com recently downgraded Federated Hermes from a "strong-buy" rating to a "buy" rating in a report dated November 26. Meanwhile, on October 28, TD Cowen upgraded the stock from a "hold" rating to a "buy" rating, raising their target price from $35.00 to $46.00. In a report released on January 7, JPMorgan Chase & Co. reaffirmed a "neutral" rating for the stock, adjusting the target price down from $49.00 to $42.00. Deutsche Bank also reiterated a "hold" rating on January 8, setting the target price at $43.00, a decrease from the previous $45.00. Additionally, Royal Bank of Canada increased its price target for Federated Hermes from $36.00 to $39.00, while maintaining a "sector perform" rating on October 28.

Recent Performance of Federated Hermes

On Monday, shares of Federated Hermes traded at an opening price of $38.39. The stock has experienced a twelve-month low of $31.24 and a high of $43.92. Financially, the company holds a market capitalization of $3.14 billion, with a current ratio of 2.75, a quick ratio of 2.03, and a debt-to-equity ratio of 0.32. The price-to-earnings (P/E) ratio stands at 12.34, and the P/E to growth (P/E/G) ratio is recorded at 1.19. The stock’s 50-day moving average is approximately $41.59, whereas the 200-day moving average is around $37.42.

In its most recent earnings report, issued on October 24, Federated Hermes reported earnings of $1.06 per share (EPS), which surpassed analyst expectations of $0.92 by $0.14. The company’s return on equity was noted at 29.85%, with a net margin of 16.62%. Revenue for the quarter totaled $408.46 million, slightly below the expected $410.26 million, yet representing a 1.4% increase year over year. Analysts forecast that Federated Hermes will achieve an earnings per share of 3.88 for the ongoing fiscal year.

Dividends Declared by Federated Hermes

On November 15, the firm announced a quarterly dividend of $0.31, which was distributed to stockholders who were on record as of November 8. This dividend yields an annualized total of $1.24, resulting in a yield of 3.23%. The company’s current dividend payout ratio (DPR) is calculated at 39.87%.

Insider Transactions in Federated Hermes

In related news, CEO Saker Anwar Nusseibeh sold 12,152 shares of the company on November 4 for an average price of $39.86, totaling about $484,378.72. After this trade, he holds 179,096 shares valued at approximately $7,138,766.56, indicating a 6.35% reduction in his ownership stake. Furthermore, VP Paul A. Uhlman sold 6,311 shares on November 19 at an average price of $41.39, amounting to $261,212.29. Post-transaction, he owns 310,767 shares with a valuation of around $12,862,646.13. Over the last three months, insiders have sold 29,280 shares of stock for a total of $1,185,871, with company insiders currently holding 3.70% of the total shares.

Changes in Institutional Investments

Several institutional investors have recently adjusted their positions in FHI. Los Angeles Capital Management LLC established a new stake in Federated Hermes worth approximately $206,000 during the second quarter. Acadian Asset Management LLC increased its shareholding by 23.3%, now owning 3,402 shares valued at $111,000 after a recent acquisition of 643 shares. Headlands Technologies LLC boosted its position by 134.9%, now holding 1,945 shares after purchasing an additional 1,117 shares, while American Century Companies Inc. raised its stakes by 112.4%, now controlling 56,333 shares valued at $1,852,000 after an acquisition of 29,814 shares. Lastly, DekaBank Deutsche Girozentrale acquired a fresh stake in the firm, amounting to about $120,000. Overall, institutional investors currently own 75.94% of Federated Hermes's stock.

Profile of Federated Hermes

Federated Hermes, Inc. is a publicly traded investment manager that provides services to a diverse clientele. This includes individuals, high-net-worth individuals, banking institutions, pension plans, and charitable organizations, along with municipal government entities and registered investment advisors.

Federated, Hermes, Stock