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 note published on Saturday morning.

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

Federated Hermes Price Performance

NYSE:FHI opened at $56.58 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.75 and a quick ratio of 2.30. The company has a 50 day moving average price of $54.46 and a 200-day moving average price of $52.44. Federated Hermes has a 1-year low of $35.05 and a 1-year high of $57.80. The firm has a market cap of $4.39 billion, a price-to-earnings ratio of 11.01, a price-to-earnings-growth ratio of 1.99 and a beta of 0.73.

Federated Hermes (NYSE:FHI) last announced its quarterly earnings results on Thursday, January 29th. The company reported $1.39 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.20 by $0.19. The firm had revenue of $482.83 million for the quarter, compared to the consensus estimate of $468.45 million. Federated Hermes had a net margin of 22.40% and a return on equity of 34.25%. The firm’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.04 earnings per share. Equities research analysts forecast that Federated Hermes will post 4.04 EPS for the current year.

Federated Hermes Dividend Announcement

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

Institutional Investors Weigh In On Federated Hermes

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Schneider Downs Wealth Management Advisors LP lifted its position in 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 buying an additional 2,577,442 shares in the last quarter. LSV Asset Management grew its holdings in Federated Hermes by 77.6% in the 2nd quarter. LSV Asset Management now owns 1,966,142 shares of the company’s stock valued at $87,139,000 after buying an additional 859,053 shares in the last quarter. Victory Capital Management Inc. increased its stake in shares of Federated Hermes by 2,410.2% in the 3rd quarter. Victory Capital Management Inc. now owns 779,492 shares of the company’s stock worth $40,479,000 after acquiring an additional 748,439 shares during the last quarter. Invesco Ltd. increased its stake in shares of Federated Hermes by 29.6% in the 3rd quarter. Invesco Ltd. now owns 2,939,908 shares of the company’s stock worth $152,669,000 after acquiring an additional 670,643 shares during the last quarter. Finally, Jupiter Asset Management Ltd. raised its holdings in shares of Federated Hermes by 2,427.2% during the 3rd quarter. Jupiter Asset Management Ltd. now owns 527,368 shares of the company’s stock worth $27,386,000 after acquiring an additional 506,500 shares during the period. Institutional investors and hedge funds 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.