Federated Hermes (NYSE:FHI) Reaches New 12-Month High – Time to Buy?

Federated Hermes, Inc. (NYSE:FHI)’s stock price hit a new 52-week high during trading on Wednesday . The stock traded as high as $56.68 and last traded at $54.90, with a volume of 625875 shares changing hands. The stock had previously closed at $55.44.

Wall Street Analysts Forecast Growth

FHI has been the subject of several analyst reports. TD Cowen reissued a “hold” rating on shares of Federated Hermes in a report on Wednesday, January 14th. JPMorgan Chase & Co. raised their price objective on shares of Federated Hermes from $55.00 to $56.00 and gave the stock a “neutral” rating in a report on Monday, November 3rd. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $55.00 target price (up previously from $54.00) on shares of Federated Hermes in a research note on Tuesday, February 3rd. Weiss Ratings reissued a “buy (b)” rating on shares of Federated Hermes in a report on Thursday, January 22nd. Finally, Zacks Research cut Federated Hermes from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 9th. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Federated Hermes currently has an average rating of “Hold” and a consensus target price of $55.00.

Federated Hermes Trading Up 1.9%

The company has a quick ratio of 2.58, a current ratio of 2.75 and a debt-to-equity ratio of 0.29. The company has a market cap of $4.33 billion, a P/E ratio of 10.98, a P/E/G ratio of 0.53 and a beta of 0.74. The business has a 50-day moving average price of $53.38 and a two-hundred day moving average price of $52.02.

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

Federated Hermes Announces Dividend

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

Institutional Investors Weigh In On Federated Hermes

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. MAI Capital Management boosted its holdings in Federated Hermes by 86.7% during the third quarter. MAI Capital Management now owns 476 shares of the company’s stock worth $25,000 after buying an additional 221 shares during the last quarter. Torren Management LLC acquired a new stake in shares of Federated Hermes in the 4th quarter valued at approximately $25,000. CIBC Private Wealth Group LLC boosted its stake 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 last quarter. Parkside Financial Bank & Trust boosted its stake in Federated Hermes by 145.8% during the 4th quarter. Parkside Financial Bank & Trust now owns 848 shares of the company’s stock worth $44,000 after acquiring an additional 503 shares during the last quarter. Finally, Farther Finance Advisors LLC grew its holdings in Federated Hermes by 97.7% during the third quarter. Farther Finance Advisors LLC now owns 870 shares of the company’s stock valued at $45,000 after purchasing an additional 430 shares during the period. Institutional investors own 75.94% of the company’s stock.

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.