Federated Hermes (FHI) – Investment Analysts' Recent Ratings Updates

On October 31, 2024, various financial firms provided updates on their ratings and price targets for shares of Federated Hermes (NYSE: FHI).

• On October 30, 2024, StockNews.com upgraded Federated Hermes from a “buy” rating to a “strong-buy” rating.
• On October 28, 2024, analysts at Royal Bank of Canada increased their price target for Federated Hermes from $36.00 to $39.00, now classifying it as a “sector perform”.
• On the same day, TD Cowen also upgraded the stock from a “hold” rating to a “buy” rating, setting the price target at $46.00, raised from a previous target of $35.00.
• Previously, on October 22, 2024, UBS Group AG raised its price target from $36.00 to $40.00, maintaining a “neutral” rating.
• On October 11, 2024, Royal Bank of Canada had another adjustment, raising the price target from $35.00 to $36.00, while reaffirming their “sector perform” rating.
• On October 4, 2024, Evercore ISI increased its price target from $36.00 to $38.00 and rated the stock as “outperform”.
• Also, on October 4, StockNews.com upgraded the rating from “hold” to “buy”.
• Earlier on September 5, 2024, Evercore ISI lowered its price target from $37.00 to $36.00, while still maintaining an “outperform” rating.
• On September 4, 2024, StockNews.com downgraded Federated Hermes from “buy” to “hold”.

Price Performance Overview

As of Thursday, Federated Hermes shares opened at $40.29. The company’s 50-day simple moving average stands at $36.21, while the 200-day average is $34.28. Financial metrics include a debt-to-equity ratio of 0.34, a current ratio of 2.75, and a quick ratio of 2.09. Federated Hermes has a market capitalization of $3.33 billion, with a price-to-earnings ratio of 11.45 and a beta of 1.16. Over the past year, the stock has reached a low of $31.08 and a high of $40.36.

Federated Hermes reported its latest quarterly earnings on October 24, 2024, announcing earnings per share of $1.06, surpassing the expected $0.92 by $0.14. The company’s revenue for the quarter was $408.46 million, just below analyst projections of $410.26 million. The company enjoys a net margin of 15.90% and a return on equity of 28.60%. Comparatively, revenue rose 1.4% year-over-year from $0.86 earnings per share last year. Analysts predict that Federated Hermes will report earnings of 3.68 per share for the current fiscal year.

Dividend Announcement

The company has also announced a quarterly dividend of $0.31 per share, set to be paid on November 15, 2024, to shareholders on record by November 8, 2024. This yields an annual dividend of $1.24, translating to a yield of 3.08%. The current dividend payout ratio (DPR) is 35.23%.

Recent Insider Trading Activities

On August 5, 2024, VP John B. Fisher sold 79,830 shares of Federated Hermes stock at an average price of $32.71, totaling $2,611,239.30. Post-sale, he holds 442,570 shares, valued at $14,476,464.70, indicating no change in his ownership percentage. This transaction was made public via an SEC filing. Additionally, on October 30, 2024, VP Dolores D. Dudiak sold 5,000 shares at an average price of $39.89, garnering $199,450.00. After this sale, she retains 77,288 shares valued at roughly $3,083,018.32. In the past 90 days, insiders have collectively sold 84,902 shares, accumulating $2,813,119 in sales, which corresponds to 3.70% ownership by insiders.

Recent Institutional Activity

A variety of hedge funds and institutional investors have adjusted their holdings in Federated Hermes recently. Headlands Technologies LLC significantly increased its stake by 607.7% during the first quarter, acquiring a total of 828 shares, valued at $30,000. GAMMA Investing LLC raised its holdings by 49.0% in the third quarter, now owning 1,061 shares valued at $39,000. Mather Group LLC established a new position worth $47,000 during the second quarter. Similarly, CWM LLC ramped up holdings by 985.7% during the same period, ending with 1,444 shares valued at $47,000. UMB Bank n.a. also increased its holdings by 26.0%, now holding 1,436 shares valued at $47,000. Currently, institutional investors own approximately 75.94% of Federated Hermes stock.

Federated Hermes, Inc. operates as a publicly-owned investment manager. Through its various subsidiaries, the firm caters to individuals, including high net worth individuals, banks, investment companies, pension and profit-sharing plans, pooled investment vehicles, charitable organizations, as well as state and municipal governments.

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