Federated Investors (FII) Rating Lowered to Hold at Zacks Investment Research
Federated Investors (NYSE:FII) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a research note issued on Monday.
According to Zacks, “Shares of Federated have outperformed the industry over the past three months. Further, the company’s earnings surprise history is decent, having beaten the Zacks Consensus Estimate in two of the trailing four quarters. In the third quarter, higher assets under management (AUM) and revenues were recorded. Notably, the acquisition of Hermes in July 2018 brought along complementary global investment strategies and distribution capabilities, from which the company is expected to keep reaping benefits. Also, Federated has inked strategic deals over the years that have helped it expand globally. However, consistent increase in expenses due to strict compliance measures remains a major concern. Nevertheless, its top line continues to get support from the rise in interest rates and increasing AUM.”
Several other analysts have also recently weighed in on FII. Deutsche Bank dropped their price objective on shares of Federated Investors from $24.00 to $22.00 and set a “hold” rating for the company in a research note on Friday, November 16th. Royal Bank of Canada set a $28.00 price objective on shares of Federated Investors and gave the stock a “hold” rating in a research note on Friday, July 27th. Keefe, Bruyette & Woods reiterated a “neutral” rating and issued a $25.00 price objective on shares of Federated Investors in a research note on Sunday, July 29th. JPMorgan Chase & Co. upgraded shares of Federated Investors from an “underweight” rating to a “neutral” rating and set a $24.00 price objective for the company in a research note on Monday, September 17th. Finally, ValuEngine upgraded shares of Federated Investors from a “strong sell” rating to a “sell” rating in a research note on Saturday, October 27th. Two analysts have rated the stock with a sell rating and six have assigned a hold rating to the stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $26.79.
Federated Investors (NYSE:FII) last issued its quarterly earnings data on Thursday, October 25th. The asset manager reported $0.59 earnings per share for the quarter, topping the consensus estimate of $0.54 by $0.05. Federated Investors had a net margin of 26.25% and a return on equity of 30.19%. The business had revenue of $308.62 million during the quarter, compared to analysts’ expectations of $283.04 million. As a group, equities research analysts expect that Federated Investors will post 2.36 EPS for the current fiscal year.
In other Federated Investors news, EVP Peter J. Germain sold 1,415 shares of the firm’s stock in a transaction dated Friday, November 2nd. The shares were sold at an average price of $25.06, for a total value of $35,459.90. Following the transaction, the executive vice president now directly owns 92,764 shares of the company’s stock, valued at approximately $2,324,665.84. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, VP John B. Fisher sold 10,099 shares of the firm’s stock in a transaction dated Friday, November 2nd. The shares were sold at an average price of $24.89, for a total transaction of $251,364.11. Following the completion of the transaction, the vice president now directly owns 541,485 shares in the company, valued at $13,477,561.65. The disclosure for this sale can be found here. Over the last three months, insiders sold 11,712 shares of company stock worth $291,790. Insiders own 5.30% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in FII. Millennium Management LLC increased its holdings in Federated Investors by 928.3% in the 1st quarter. Millennium Management LLC now owns 115,977 shares of the asset manager’s stock valued at $3,874,000 after buying an additional 104,699 shares during the period. Principal Financial Group Inc. grew its holdings in shares of Federated Investors by 3.6% during the 1st quarter. Principal Financial Group Inc. now owns 505,666 shares of the asset manager’s stock valued at $16,889,000 after purchasing an additional 17,744 shares during the last quarter. Cornerstone Wealth Management LLC bought a new stake in shares of Federated Investors during the 2nd quarter valued at approximately $2,061,000. Ridgewood Investments LLC grew its holdings in shares of Federated Investors by 24.5% during the 2nd quarter. Ridgewood Investments LLC now owns 12,200 shares of the asset manager’s stock valued at $285,000 after purchasing an additional 2,399 shares during the last quarter. Finally, Schneider Downs Wealth Management Advisors LP grew its holdings in shares of Federated Investors by 0.8% during the 2nd quarter. Schneider Downs Wealth Management Advisors LP now owns 3,046,084 shares of the asset manager’s stock valued at $71,035,000 after purchasing an additional 25,319 shares during the last quarter. 84.26% of the stock is currently owned by hedge funds and other institutional investors.
Federated Investors Company Profile
Federated Investors, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.
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