Wall Street Zen Downgrades Federated Hermes (NYSE:FHI) to Hold

Federated Hermes (NYSE:FHI) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a report issued on Sunday.

A number of other research analysts have also recently commented on FHI. TD Cowen decreased their price objective on Federated Hermes from $58.00 to $54.00 and set a “hold” rating on the stock in a report on Monday, May 4th. Evercore reiterated an “outperform” rating and set a $59.00 price target on shares of Federated Hermes in a report on Monday, June 8th. Weiss Ratings upgraded shares of Federated Hermes from a “buy (b)” rating to a “buy (b+)” rating in a report on Friday, July 31st. Royal Bank Of Canada increased their target price on shares of Federated Hermes from $54.00 to $57.00 and gave the stock a “sector perform” rating in a research note on Thursday, July 2nd. Finally, JPMorgan Chase & Co. reduced their price target on shares of Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a research note on Monday, May 4th. Two investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $57.40.

Federated Hermes Price Performance

FHI stock opened at $62.98 on Friday. Federated Hermes has a 1 year low of $46.66 and a 1 year high of $67.20. The company has a debt-to-equity ratio of 0.28, a current ratio of 2.59 and a quick ratio of 1.89. The firm has a market capitalization of $4.70 billion, a PE ratio of 11.71, a price-to-earnings-growth ratio of 1.48 and a beta of 0.65. The business has a 50 day simple moving average of $58.71 and a 200-day simple moving average of $56.73.

Federated Hermes (NYSE:FHI) last released its quarterly earnings data on Thursday, July 30th. The company reported $1.38 earnings per share for the quarter, topping analysts’ consensus estimates of $1.19 by $0.19. Federated Hermes had a return on equity of 34.03% and a net margin of 21.30%.The company had revenue of $502.78 million for the quarter, compared to analyst estimates of $488.34 million. During the same quarter in the previous year, the company posted $1.16 earnings per share. The firm’s revenue for the quarter was up 18.3% compared to the same quarter last year. Equities research analysts anticipate that Federated Hermes will post 5.43 earnings per share for the current fiscal year.

Insider Buying and Selling at Federated Hermes

In related news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $57.34, for a total value of $513,193.00. Following the sale, the chief executive officer owned 151,276 shares of the company’s stock, valued at $8,674,165.84. This trade represents a 5.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Federated Hermes

A number of hedge funds and other institutional investors have recently modified their holdings of FHI. Jones Financial Companies Lllp increased its holdings in Federated Hermes by 236.0% in the first quarter. Jones Financial Companies Lllp now owns 8,890 shares of the company’s stock valued at $362,000 after buying an additional 6,244 shares during the last quarter. United Services Automobile Association purchased a new position in shares of Federated Hermes in the 1st quarter valued at about $220,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Federated Hermes by 11.6% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 239,613 shares of the company’s stock worth $9,769,000 after acquiring an additional 24,960 shares in the last quarter. American Century Companies Inc. lifted its stake in Federated Hermes by 1.9% during the second quarter. American Century Companies Inc. now owns 33,246 shares of the company’s stock worth $1,474,000 after purchasing an additional 614 shares during the last quarter. Finally, Prudential Financial Inc. lifted its stake in Federated Hermes by 4.9% during the second quarter. Prudential Financial Inc. now owns 11,744 shares of the company’s stock worth $497,000 after purchasing an additional 547 shares during the last quarter. 75.94% of the stock is currently owned by institutional investors and hedge funds.

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.