Federated Hermes (NYSE:FHI) Cut to Hold at Wall Street Zen

Wall Street Zen downgraded shares of Federated Hermes (NYSE:FHI) from a buy rating to a hold rating in a research report sent to investors on Sunday.

Other research analysts have also recently issued reports about the company. JPMorgan Chase & Co. reduced their target price on Federated Hermes from $56.00 to $53.00 and set an “underweight” rating for the company in a research report on Monday, May 4th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $58.00 price target on shares of Federated Hermes in a report on Monday, August 3rd. Royal Bank Of Canada increased their price objective on shares of Federated Hermes from $54.00 to $57.00 and gave the company a “sector perform” rating in a research note on Thursday, July 2nd. Evercore reaffirmed an “outperform” rating and set a $59.00 price objective on shares of Federated Hermes in a report on Monday, June 8th. Finally, Weiss Ratings raised shares of Federated Hermes from a “buy (b)” rating to a “buy (b+)” rating in a research note on Friday, July 31st. Two equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $57.40.

Federated Hermes Trading Down 0.2%

Shares of FHI opened at $63.04 on Friday. The stock’s 50-day moving average price is $58.85 and its 200 day moving average price is $56.79. The company has a quick ratio of 1.89, a current ratio of 2.59 and a debt-to-equity ratio of 0.28. The firm has a market capitalization of $4.71 billion, a price-to-earnings ratio of 11.72, a P/E/G ratio of 1.48 and a beta of 0.65. Federated Hermes has a 12-month low of $46.66 and a 12-month high of $67.20.

Federated Hermes (NYSE:FHI) last announced its quarterly earnings data on Thursday, July 30th. The company reported $1.38 EPS for the quarter, topping analysts’ consensus estimates of $1.19 by $0.19. The company had revenue of $502.78 million during the quarter, compared to the consensus estimate of $488.34 million. Federated Hermes had a return on equity of 34.03% and a net margin of 21.30%.The company’s quarterly revenue was up 18.3% on a year-over-year basis. During the same quarter last year, the company earned $1.16 EPS. As a group, research analysts predict that Federated Hermes will post 5.43 earnings per share for the current year.

Federated Hermes Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, August 7th will be paid a dividend of $0.38 per share. This represents a $1.52 annualized dividend and a yield of 2.4%. The ex-dividend date of this dividend is Friday, August 7th. Federated Hermes’s dividend payout ratio is currently 28.25%.

Insider Buying and Selling at Federated Hermes

In other news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $57.34, for a total transaction of $513,193.00. Following the completion of the sale, the chief executive officer owned 151,276 shares of the company’s stock, valued at approximately $8,674,165.84. This trade represents a 5.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. AQR Capital Management LLC increased its holdings in Federated Hermes by 1.7% during the 4th quarter. AQR Capital Management LLC now owns 3,036,239 shares of the company’s stock valued at $158,097,000 after purchasing an additional 50,067 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in Federated Hermes by 0.4% in the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,032,060 shares of the company’s stock worth $157,879,000 after purchasing an additional 12,348 shares in the last quarter. Invesco Ltd. boosted its stake in Federated Hermes by 29.6% in the third quarter. Invesco Ltd. now owns 2,939,908 shares of the company’s stock worth $152,669,000 after purchasing an additional 670,643 shares in the last quarter. LSV Asset Management grew its holdings in shares of Federated Hermes by 20.4% during the fourth quarter. LSV Asset Management now owns 2,890,276 shares of the company’s stock worth $150,497,000 after purchasing an additional 489,275 shares during the last quarter. Finally, Schneider Downs Wealth Management Advisors LP grew its holdings in shares of Federated Hermes by 3,229.0% during the third quarter. Schneider Downs Wealth Management Advisors LP now owns 2,657,263 shares of the company’s stock worth $137,992,000 after purchasing an additional 2,577,442 shares during the last quarter. 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.