Federated Hermes (NYSE:FHI) Reaches New 1-Year High – Here’s Why

Shares of Federated Hermes, Inc. (NYSE:FHI) hit a new 52-week high during mid-day trading on Tuesday . The company traded as high as $63.99 and last traded at $63.8220, with a volume of 838684 shares traded. The stock had previously closed at $59.96.

Wall Street Analyst Weigh In

FHI has been the topic of several recent analyst reports. JPMorgan Chase & Co. dropped their target price on shares of Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a research report on Monday, May 4th. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and set a $58.00 price target on shares of Federated Hermes in a research report on Monday. TD Cowen dropped their price target on Federated Hermes from $58.00 to $54.00 and set a “hold” rating on the stock in a report on Monday, May 4th. Evercore reissued an “outperform” rating and issued a $59.00 price objective on shares of Federated Hermes in a research report on Monday, June 8th. Finally, Wall Street Zen upgraded Federated Hermes from a “hold” rating to a “buy” rating in a research note on Saturday. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Federated Hermes currently has a consensus rating of “Hold” and an average price target of $56.20.

Federated Hermes Trading Up 6.4%

The firm has a fifty day moving average of $57.94 and a two-hundred day moving average of $56.37. The company has a market cap of $4.84 billion, a PE ratio of 11.86, a price-to-earnings-growth ratio of 1.62 and a beta of 0.65. The company has a current ratio of 2.59, a quick ratio of 2.73 and a debt-to-equity ratio of 0.11.

Federated Hermes (NYSE:FHI) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.38 EPS for the quarter, beating the consensus estimate of $1.19 by $0.19. The business had revenue of $502.78 million for the quarter, compared to the consensus estimate of $488.34 million. Federated Hermes had a net margin of 21.30% and a return on equity of 24.27%. The company’s revenue was up 18.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.16 earnings per share. As a group, sell-side analysts predict that Federated Hermes, Inc. will post 5.24 EPS for the current year.

Federated Hermes Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, August 7th will be paid a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a dividend yield of 2.4%. The ex-dividend date is Friday, August 7th. Federated Hermes’s dividend payout ratio is presently 28.25%.

Insider Activity at Federated Hermes

In other Federated Hermes news, VP Bryan M. Burke sold 4,000 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total transaction of $216,800.00. Following the sale, the vice president owned 74,921 shares in the company, valued at $4,060,718.20. This represents a 5.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Saker Anwar Nusseibeh sold 8,950 shares of the firm’s stock in a transaction on Monday, June 8th. The stock was sold at an average price of $57.34, for a total value of $513,193.00. Following the completion of the transaction, the chief executive officer directly owned 151,276 shares of the company’s stock, valued at $8,674,165.84. The trade was a 5.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 4.20% of the stock is currently owned by company insiders.

Institutional Trading of Federated Hermes

Institutional investors have recently added to or reduced their stakes in the stock. Torren Management LLC purchased a new stake in shares of Federated Hermes in the fourth quarter worth about $25,000. Root Financial Partners LLC increased its holdings in Federated Hermes by 71.0% during the 1st quarter. Root Financial Partners LLC now owns 571 shares of the company’s stock worth $32,000 after acquiring an additional 237 shares during the period. CIBC Private Wealth Group LLC increased its holdings in Federated Hermes by 119.7% during the 4th 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 period. Parkside Financial Bank & Trust lifted its stake in Federated Hermes by 145.8% in the 4th quarter. Parkside Financial Bank & Trust now owns 848 shares of the company’s stock worth $44,000 after purchasing an additional 503 shares in the last quarter. Finally, Caitong International Asset Management Co. Ltd lifted its stake in Federated Hermes by 220.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 863 shares of the company’s stock worth $45,000 after purchasing an additional 594 shares in the last quarter. Hedge funds and other institutional investors own 75.94% of the company’s stock.

Federated Hermes Company Profile

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.