Federated Hermes, Inc. (NYSE:FHI) Sees Significant Decrease in Short Interest

Federated Hermes, Inc. (NYSE:FHI) was the recipient of a significant drop in short interest in March. As of March 31st, there was short interest totaling 2,747,264 shares, a drop of 20.9% from the March 15th total of 3,473,140 shares. Currently, 3.8% of the company’s stock are short sold. Based on an average trading volume of 850,122 shares, the days-to-cover ratio is presently 3.2 days.

Wall Street Analysts Forecast Growth

Several brokerages have commented on FHI. Argus upgraded shares of Federated Hermes to a “hold” rating in a research note on Monday, February 2nd. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $55.00 price target (up from $54.00) on shares of Federated Hermes in a research note on Tuesday, February 3rd. TD Cowen reiterated a “hold” rating on shares of Federated Hermes in a research note on Thursday, April 9th. JPMorgan Chase & Co. lowered shares of Federated Hermes from a “neutral” rating to an “underweight” rating and increased their price target for the company from $55.00 to $56.00 in a research note on Thursday. Finally, Wall Street Zen upgraded shares of Federated Hermes from a “hold” rating to a “buy” rating in a research note on Saturday, April 4th. Two investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $55.00.

Federated Hermes Stock Performance

Shares of FHI traded down $0.34 during mid-day trading on Friday, reaching $56.61. 870,610 shares of the company’s stock were exchanged, compared to its average volume of 834,576. 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 stock has a market capitalization of $4.30 billion, a PE ratio of 11.01, a price-to-earnings-growth ratio of 1.99 and a beta of 0.67. The business’s fifty day simple moving average is $56.25 and its 200-day simple moving average is $53.13. Federated Hermes has a 52-week low of $35.88 and a 52-week high of $59.05.

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

Federated Hermes Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, February 6th were given a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Friday, February 6th. Federated Hermes’s dividend payout ratio (DPR) is 26.46%.

Insiders Place Their Bets

In related news, VP Paul A. Uhlman sold 72,392 shares of the firm’s stock in a transaction that occurred on Thursday, March 12th. The shares were sold at an average price of $56.23, for a total value of $4,070,602.16. Following the sale, the vice president owned 263,987 shares of the company’s stock, valued at $14,843,989.01. This trade represents a 21.52% 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. 4.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Federated Hermes

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Andina Capital Management LLC purchased a new position in Federated Hermes in the 1st quarter valued at $569,000. AdvisorNet Financial Inc grew its position in Federated Hermes by 38.4% in the 1st quarter. AdvisorNet Financial Inc now owns 1,563 shares of the company’s stock valued at $89,000 after buying an additional 434 shares during the last quarter. SG Americas Securities LLC grew its position in Federated Hermes by 27.6% in the 1st quarter. SG Americas Securities LLC now owns 73,964 shares of the company’s stock valued at $4,194,000 after buying an additional 16,012 shares during the last quarter. BI Asset Management Fondsmaeglerselskab A S grew its position in Federated Hermes by 255.9% in the 1st quarter. BI Asset Management Fondsmaeglerselskab A S now owns 144,671 shares of the company’s stock valued at $8,204,000 after buying an additional 104,017 shares during the last quarter. Finally, Diversified Trust Co grew its position in Federated Hermes by 18.1% in the 1st quarter. Diversified Trust Co now owns 11,144 shares of the company’s stock valued at $632,000 after buying an additional 1,704 shares during the last quarter. 75.94% of the stock is currently owned by hedge funds and other institutional investors.

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.