Federated Hermes (NYSE:FHI) Hits New 12-Month High – Should You Buy?
by Michael Walen · The Markets DailyFederated Hermes, Inc. (NYSE:FHI – Get Free Report)’s share price reached a new 52-week high during trading on Monday . The company traded as high as $59.83 and last traded at $59.6590, with a volume of 1486720 shares changing hands. The stock had previously closed at $59.07.
Wall Street Analyst Weigh In
A number of equities analysts have recently weighed in on the stock. JPMorgan Chase & Co. lowered their price target on shares of Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a research note on Monday, May 4th. Weiss Ratings reissued a “buy (b)” rating on shares of Federated Hermes in a report on Tuesday, April 21st. Wall Street Zen lowered shares of Federated Hermes from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Royal Bank Of Canada reduced their price target on shares of Federated Hermes from $56.00 to $54.00 and set a “sector perform” rating for the company in a research report on Wednesday, May 6th. Finally, Evercore reissued an “outperform” rating and set a $59.00 price target on shares of Federated Hermes in a research note on Monday, June 8th. Two analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and a consensus target price of $55.00.
Federated Hermes Stock Up 0.7%
The firm has a market capitalization of $4.51 billion, a PE ratio of 11.54, a price-to-earnings-growth ratio of 2.11 and a beta of 0.65. The firm’s 50-day moving average is $56.46 and its 200 day moving average is $55.08. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.73 and a current ratio of 3.28.
Federated Hermes (NYSE:FHI – Get Free Report) last posted its earnings results on Thursday, April 30th. The company reported $1.27 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.07. The firm had revenue of $478.96 million during the quarter, compared to the consensus estimate of $475.22 million. Federated Hermes had a net margin of 21.47% and a return on equity of 33.90%. The firm’s revenue for the quarter was up 13.1% on a year-over-year basis. During the same period last year, the firm posted $1.25 EPS. As a group, research analysts forecast that Federated Hermes, Inc. will post 5.1 earnings per share for the current fiscal year.
Federated Hermes Increases Dividend
The business also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 8th were given a dividend of $0.38 per share. The ex-dividend date was Friday, May 8th. This represents a $1.52 annualized dividend and a dividend yield of 2.6%. This is an increase from Federated Hermes’s previous quarterly dividend of $0.34. Federated Hermes’s payout ratio is presently 29.46%.
Insider Buying and Selling
In other news, VP Bryan M. Burke sold 4,000 shares of the business’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total value of $216,800.00. Following the completion of the transaction, the vice president directly owned 74,921 shares of the company’s stock, valued at $4,060,718.20. The trade was a 5.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Saker Anwar Nusseibeh sold 8,950 shares of the company’s stock in a transaction on Monday, June 8th. The shares were sold at an average price of $57.34, for a total value of $513,193.00. Following the completion of the sale, the chief executive officer owned 151,276 shares in the company, valued at $8,674,165.84. This represents a 5.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 4.20% of the stock is currently owned by corporate insiders.
Institutional Trading of Federated Hermes
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Torren Management LLC acquired a new stake in shares of Federated Hermes during the 4th quarter worth about $25,000. MAI Capital Management raised its position in shares of Federated Hermes by 86.7% in the third quarter. MAI Capital Management now owns 476 shares of the company’s stock valued at $25,000 after buying an additional 221 shares during the last quarter. Root Financial Partners LLC lifted its stake in shares of Federated Hermes by 71.0% during the first quarter. Root Financial Partners LLC now owns 571 shares of the company’s stock valued at $32,000 after buying an additional 237 shares during the period. CIBC Private Wealth Group LLC boosted its position in Federated Hermes by 119.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company’s stock worth $38,000 after acquiring an additional 401 shares during the last quarter. Finally, Parkside Financial Bank & Trust boosted its position in Federated Hermes by 145.8% during the fourth quarter. Parkside Financial Bank & Trust now owns 848 shares of the company’s stock worth $44,000 after acquiring an additional 503 shares during the last quarter. Hedge funds and other institutional investors own 75.94% of the company’s stock.
About Federated Hermes
Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.
In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.