Federated Hermes, Inc. (NYSE:FHI) Consensus Rating Update

Federated Hermes, Inc. (NYSE:FHI – Get Free Report) has received a consensus rating of "Hold" based on findings from six brokerages that analyze the company's performance, according to MarketBeat Ratings. Among these analysts, four have assigned a hold rating, while two have recommended buying the stock, indicating a cautious outlook among investors.

Brokerages have provided an average twelve-month price target for Federated Hermes, set at $42.17. This figure reflects the expectations of the stock's potential for growth over the next year.

Recent Analyst Commentary

Several analysts have recently expressed their views on Federated Hermes shares. StockNews.com revised its rating for the company from "strong-buy" to "buy" in a report dated November 26. In another assessment, TD Cowen upgraded Latino shares from a "hold" rating to a "buy" and raised its price target from $35 to $46, highlighting a positive shift in sentiment.

On January 7, JPMorgan Chase & Co. maintained a "neutral" classification for the stock, reducing its price target from $49 to $42. Meanwhile, Deutsche Bank reiterated its hold rating and adjusted its price target to $43, down from the previous $45. Royal Bank of Canada also increased its target on Federated Hermes from $36 to $39 while applying a "sector perform" rating on October 28.

Current Stock Performance

As of Monday, shares of Federated Hermes were trading at $38.39, down 2.3%. The stock has seen fluctuations in the past year, reaching a low of $31.24 and a high of $43.92. Financial metrics include a market capitalization of $3.14 billion, a P/E ratio of 12.34, and a P/E/G ratio of 1.19. The company reports a current ratio of 2.75 and a quick ratio of 2.03, indicating sound financial health with a manageable debt-to-equity ratio of 0.32. Over the past 50 days, the average stock price has been $41.59, increasing to $37.42 over 200 days.

Quarterly Earnings Insights

Federated Hermes recently released its quarterly earnings on October 24, posting earnings of $1.06 per share, which surpassed the average analyst expectation of $0.92 by $0.14. The company's return on equity stood impressively at 29.85%, with a net margin of 16.62%. The reported revenue for the quarter was $408.46 million, slightly below analyst estimates of $410.26 million. Compared to the previous year, earnings per share improved from $0.86 to $1.06, showing a year-over-year revenue growth of 1.4%. Analysts predict that the earnings per share could reach approximately 3.88 in the current fiscal year.

Dividend Payment Announced

The company recently declared a quarterly dividend of $0.31, which was payable on November 15. This dividend reflects an annualized amount of $1.24, resulting in a yield of 3.23%. The current dividend payout ratio (DPR) is set at 39.87%, indicating a sustainable policy for returning value to shareholders.

Insider Transactions

In notable insider activity, CEO Saker Anwar Nusseibeh sold 12,152 shares on November 4 for an average price of $39.86, totaling approximately $484,378. As a result, Nusseibeh's ownership decreased by roughly 6.35%, leaving him with about 179,096 shares valued at $7,138,766.56. Additionally, VP Paul A. Uhlman sold 6,311 shares on November 19 at an average price of $41.39, totaling $261,212.29, reducing his direct ownership by nearly 1.99%. In total, insiders have sold 29,280 shares worth about $1,185,871 in the last ninety days, with company insiders collectively holding 3.70% of the stock.

Institutional Investor Participation

Recent activity among institutional investors has revealed several adjustments in their stakes in Federated Hermes. Los Angeles Capital Management LLC acquired a new stake valued at around $206,000 in the second quarter. Acadian Asset Management LLC increased holdings by 23.3%, now owning 3,402 shares valued at $111,000. Headlands Technologies LLC boosted its position by 134.9%, holding 1,945 shares valued at $64,000 post-transaction. American Century Companies Inc. raised its stake significantly, owning 56,333 shares worth $1,852,000, following an increase of nearly 112.4%. Lastly, DekaBank Deutsche Girozentrale entered the picture with a new stake valued at about $120,000. Currently, institutional investors collectively hold a significant 75.94% of Federated Hermes stock.

Company Overview

Federated Hermes, Inc. is a public investment management firm. It offers services through its subsidiaries to a diverse clientele including high-net-worth individuals, banks, investment companies, pension plans, pooled investment vehicles, charities, governmental entities, and registered investment advisors.

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