Federated Hermes (NYSE:FHI) Downgraded to Hold Rating by Wall Street Zen

Wall Street Zen lowered shares of Federated Hermes (NYSE:FHI) from a buy rating to a hold rating in a research report released on Saturday morning.

Other equities analysts have also issued research reports about the company. Zacks Research lowered Federated Hermes from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 9th. Argus upgraded Federated Hermes to a “hold” rating in a research note on Monday, February 2nd. TD Cowen reiterated a “hold” rating on shares of Federated Hermes in a research report on Wednesday, January 14th. Royal Bank Of Canada reissued a “sector perform” rating and set a $55.00 target price (up from $54.00) on shares of Federated Hermes in a report on Tuesday, February 3rd. Finally, Weiss Ratings reissued a “buy (b)” rating on shares of Federated Hermes in a research report on Thursday, January 22nd. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, Federated Hermes has a consensus rating of “Hold” and an average price target of $55.00.

Federated Hermes Stock Performance

NYSE FHI opened at $56.92 on Friday. The stock has a market cap of $4.41 billion, a PE ratio of 11.07, a P/E/G ratio of 1.99 and a beta of 0.73. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.30 and a current ratio of 2.75. The firm has a 50-day moving average of $54.40 and a 200-day moving average of $52.43. Federated Hermes has a 52-week low of $35.05 and a 52-week high of $57.80.

Federated Hermes (NYSE:FHI) last announced its quarterly earnings results on Thursday, January 29th. The company reported $1.39 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.19. The business had revenue of $482.83 million for the quarter, compared to analyst estimates of $468.45 million. Federated Hermes had a net margin of 22.40% and a return on equity of 34.25%. Federated Hermes’s quarterly revenue was up 13.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.04 EPS. On average, sell-side analysts anticipate that Federated Hermes will post 4.04 EPS for the current year.

Federated Hermes Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, February 6th were issued a $0.34 dividend. The ex-dividend date of this dividend was Friday, February 6th. This represents a $1.36 annualized dividend and a yield of 2.4%. Federated Hermes’s payout ratio is currently 26.46%.

Institutional Trading of Federated Hermes

Several large investors have recently modified their holdings of the stock. Jones Financial Companies Lllp raised its stake in Federated Hermes by 236.0% in the first quarter. Jones Financial Companies Lllp now owns 8,890 shares of the company’s stock valued at $362,000 after purchasing an additional 6,244 shares in the last quarter. United Services Automobile Association bought a new position in Federated Hermes in the 1st quarter valued at about $220,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Federated Hermes by 11.6% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,613 shares of the company’s stock valued at $9,769,000 after buying an additional 24,960 shares in the last quarter. Envestnet Asset Management Inc. lifted its holdings in shares of Federated Hermes by 28.3% during the 2nd quarter. Envestnet Asset Management Inc. now owns 28,304 shares of the company’s stock worth $1,254,000 after acquiring an additional 6,247 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Federated Hermes during the 2nd quarter worth approximately $1,755,000. 75.94% of the stock is owned by institutional investors and hedge funds.

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.