Federated Investors (NYSE:FII) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday.
According to Zacks, “Shares of Federated have outperformed the industry over the last six months. Also, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. It’s top-line continues to get support from the rise in interest rates and increasing assets under management. Also, Federated’s inorganic growth strategies to expand fund offerings encourage us. However, mounting expenses remain a major concern. Also, stretched valuation indicates limited upside potential in the stock.”
A number of other research analysts also recently issued reports on FII. Jefferies Group reaffirmed a “hold” rating and set a $30.00 price target (up from $29.00) on shares of Federated Investors in a report on Tuesday, October 10th. Deutsche Bank began coverage on Federated Investors in a research report on Tuesday, October 17th. They set a “hold” rating and a $31.00 price objective for the company. Royal Bank of Canada set a $28.00 price objective on Federated Investors and gave the company a “hold” rating in a research report on Wednesday, October 18th. ValuEngine upgraded Federated Investors from a “hold” rating to a “buy” rating in a research report on Thursday, October 26th. Finally, Argus cut Federated Investors from a “buy” rating to a “hold” rating in a research report on Monday, October 30th. Three investment analysts have rated the stock with a sell rating, six have issued a hold rating, one has given a buy rating and one has given a strong buy rating to the company’s stock. Federated Investors presently has an average rating of “Hold” and a consensus target price of $29.88.
Federated Investors (NYSE:FII) last announced its quarterly earnings results on Thursday, October 26th. The asset manager reported $0.56 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.03. The firm had revenue of $278.32 million for the quarter, compared to the consensus estimate of $278.51 million. Federated Investors had a return on equity of 34.54% and a net margin of 19.32%. The company’s quarterly revenue was down 5.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.54 earnings per share. sell-side analysts expect that Federated Investors will post 2.15 EPS for the current year.
In related news, EVP Peter J. Germain sold 9,654 shares of the company’s stock in a transaction on Tuesday, January 2nd. The stock was sold at an average price of $36.04, for a total transaction of $347,930.16. Following the completion of the sale, the executive vice president now owns 68,987 shares in the company, valued at $2,486,291.48. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Thomas R. Donahue sold 30,000 shares of the company’s stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $34.79, for a total value of $1,043,700.00. Following the sale, the chief financial officer now owns 634,044 shares of the company’s stock, valued at approximately $22,058,390.76. The disclosure for this sale can be found here. In the last quarter, insiders have sold 47,430 shares of company stock valued at $1,636,457. 7.10% of the stock is owned by company insiders.
Institutional investors and hedge funds have recently modified their holdings of the business. Bessemer Group Inc. purchased a new stake in Federated Investors in the third quarter worth about $126,000. Zurcher Kantonalbank Zurich Cantonalbank increased its position in Federated Investors by 8.7% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,484 shares of the asset manager’s stock worth $127,000 after buying an additional 358 shares in the last quarter. Advisory Services Network LLC increased its position in Federated Investors by 9.4% in the second quarter. Advisory Services Network LLC now owns 5,968 shares of the asset manager’s stock worth $169,000 after buying an additional 511 shares in the last quarter. Cornerstone Capital Management Holdings LLC. purchased a new stake in Federated Investors in the second quarter worth about $176,000. Finally, Advisor Group Inc. increased its position in Federated Investors by 9.9% in the second quarter. Advisor Group Inc. now owns 6,300 shares of the asset manager’s stock worth $177,000 after buying an additional 565 shares in the last quarter. Institutional investors and hedge funds own 85.22% of the company’s stock.
About Federated Investors
Federated Investors, Inc (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products.
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