Federated Hermes (NYSE:FHI) Stock Price Down 6.3% – Here’s Why

Federated Hermes, Inc. (NYSE:FHI) was down 6.3% on Friday . The company traded as low as $54.54 and last traded at $54.4050. Approximately 659,034 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 747,789 shares. The stock had previously closed at $58.09.

Key Headlines Impacting Federated Hermes

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Company reported record assets under management — total AUM reached $907.1 billion, with record money market assets ($684.7B) and record equity assets ($100.8B). Strong AUM and inflows support fee revenue growth and franchise value. Federated Hermes reports record assets under management
• Positive Sentiment: Q1 results beat expectations: EPS $1.27 vs. $1.20 consensus and revenue ~$479M vs. ~$475M; revenue up ~13% year‑over‑year. Beats indicate ongoing fee momentum. Federated Hermes Q1 Earnings Beat Estimates, AUM Reaches Record Level
• Positive Sentiment: Board raised the quarterly dividend 11.8% to $0.38 (annualized yield ~2.7%), signaling confidence in cash flow and returning more capital to shareholders.
• Neutral Sentiment: Company posted earnings-call and shareholder/analyst prepared-remarks transcripts — useful for detail on flows, expense drivers and strategy (no new guidance). Q1 2026 Earnings Call Transcript Shareholder/Analyst Call Prepared Remarks Transcript
• Negative Sentiment: Rising operating expenses pressured profitability — net income fell vs. prior year ($96.4M vs. $101.1M) and analysts noted expense growth is weighing on margins despite revenue/AUM gains. That mixed signal likely damped investor enthusiasm. Federated Hermes Q1 Earnings Beat Estimates, AUM Reaches Record Level

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on FHI shares. Weiss Ratings reiterated a “buy (b)” rating on shares of Federated Hermes in a research note on Tuesday, April 21st. TD Cowen reiterated a “hold” rating on shares of Federated Hermes in a research note on Thursday, April 9th. JPMorgan Chase & Co. cut Federated Hermes from a “neutral” rating to an “underweight” rating and boosted their price objective for the company from $55.00 to $56.00 in a research note on Thursday, April 16th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $56.00 price objective on shares of Federated Hermes in a research note on Tuesday, April 21st. Finally, Argus upgraded Federated Hermes to a “hold” rating in a research note on Monday, February 2nd. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $55.25.

Federated Hermes Trading Down 6.7%

The company has a 50 day simple moving average of $56.63 and a 200 day simple moving average of $53.44. The company has a current ratio of 2.75, a quick ratio of 2.30 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $4.12 billion, a PE ratio of 10.54, a P/E/G ratio of 1.97 and a beta of 0.67.

Federated Hermes (NYSE:FHI) last posted its quarterly earnings data on Thursday, April 30th. The company reported $1.27 EPS for the quarter, beating the consensus estimate of $1.20 by $0.07. The firm had revenue of $478.96 million during the quarter, compared to the consensus estimate of $475.22 million. Federated Hermes had a return on equity of 34.25% and a net margin of 22.40%.The firm’s revenue was up 13.1% compared to the same quarter last year. During the same period in the prior year, the business earned $1.25 EPS. Analysts predict that Federated Hermes, Inc. will post 5.08 earnings per share for the current fiscal year.

Federated Hermes Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 8th will be paid a dividend of $0.38 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $1.52 annualized dividend and a yield of 2.8%. This is a boost from Federated Hermes’s previous quarterly dividend of $0.34. Federated Hermes’s dividend payout ratio (DPR) is currently 26.46%.

Insider Activity

In other news, VP Paul A. Uhlman sold 72,392 shares of the stock in a transaction that occurred on Thursday, March 12th. The stock was sold at an average price of $56.23, for a total transaction of $4,070,602.16. Following the completion of the transaction, the vice president directly owned 263,987 shares of the company’s stock, valued at approximately $14,843,989.01. This represents a 21.52% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Federated Hermes

Large investors have recently modified their holdings of the business. MAI Capital Management raised its stake in shares of Federated Hermes by 86.7% during the 3rd quarter. MAI Capital Management now owns 476 shares of the company’s stock worth $25,000 after buying an additional 221 shares in the last quarter. Torren Management LLC purchased a new position in shares of Federated Hermes during the 4th quarter worth approximately $25,000. Root Financial Partners LLC raised its stake in shares of Federated Hermes by 71.0% during the 1st quarter. Root Financial Partners LLC now owns 571 shares of the company’s stock worth $32,000 after buying an additional 237 shares in the last quarter. CIBC Private Wealth Group LLC raised its stake in shares of 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 buying an additional 401 shares in the last quarter. Finally, Parkside Financial Bank & Trust raised its stake in shares of 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 buying an additional 503 shares in the last quarter. 75.94% of the stock is owned by hedge funds and other institutional investors.

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.