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

Shares of Federated Hermes, Inc. (NYSE:FHI) reached a new 52-week high during trading on Wednesday . The stock traded as high as $54.99 and last traded at $54.06, with a volume of 164 shares trading hands. The stock had previously closed at $54.01.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on the company. Zacks Research cut Federated Hermes from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 9th. Wall Street Zen lowered Federated Hermes from a “strong-buy” rating to a “buy” rating in a research report on Friday, November 28th. 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 research note on Monday, November 3rd. Cowen reiterated a “hold” rating on shares of Federated Hermes in a research note on Tuesday, November 4th. Finally, Evercore ISI raised their price target on shares of Federated Hermes from $48.00 to $55.00 and gave the company an “outperform” rating in a research report on Friday, September 5th. Three investment analysts have rated the stock with a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Federated Hermes has an average rating of “Hold” and a consensus price target of $49.67.

Federated Hermes Price Performance

The stock’s 50-day simple moving average is $50.25 and its two-hundred day simple moving average is $49.73. The company has a market capitalization of $4.21 billion, a price-to-earnings ratio of 11.33, a PEG ratio of 0.57 and a beta of 0.76. The company has a quick ratio of 2.58, a current ratio of 3.13 and a debt-to-equity ratio of 0.29.

Federated Hermes (NYSE:FHI) last released its earnings results on Thursday, October 30th. The company reported $1.34 EPS for the quarter, topping analysts’ consensus estimates of $1.11 by $0.23. The business had revenue of $469.45 million during the quarter, compared to analysts’ expectations of $442.67 million. Federated Hermes had a net margin of 21.86% and a return on equity of 33.03%. The company’s quarterly revenue was up 14.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.06 earnings per share. Equities research analysts predict that Federated Hermes, Inc. will post 4.04 earnings per share for the current year.

Federated Hermes Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, November 14th. Shareholders of record on Friday, November 7th were issued a dividend of $0.34 per share. The ex-dividend date of this dividend was Friday, November 7th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.5%. Federated Hermes’s dividend payout ratio is presently 28.39%.

Insider Activity

In other news, VP Dolores D. Dudiak sold 999 shares of Federated Hermes stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $47.87, for a total value of $47,822.13. Following the sale, the vice president directly owned 88,223 shares of the company’s stock, valued at $4,223,235.01. The trade was a 1.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Saker Anwar Nusseibeh sold 15,000 shares of the business’s stock in a transaction that occurred on Monday, November 3rd. The stock was sold at an average price of $48.54, for a total value of $728,100.00. Following the sale, the chief executive officer owned 157,039 shares of the company’s stock, valued at $7,622,673.06. The trade was a 8.72% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 21,709 shares of company stock worth $1,049,146 over the last quarter. 3.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Federated Hermes

Several hedge funds and other institutional investors have recently modified their holdings of the business. Danske Bank A S acquired a new position in Federated Hermes during the third quarter worth about $1,241,000. Morningstar Investment Management LLC purchased a new position in Federated Hermes in the 3rd quarter worth approximately $1,135,000. Kestra Private Wealth Services LLC boosted its holdings in shares of Federated Hermes by 4.5% during the 3rd quarter. Kestra Private Wealth Services LLC now owns 9,830 shares of the company’s stock worth $510,000 after purchasing an additional 424 shares during the last quarter. Schneider Downs Wealth Management Advisors LP grew its position in shares of Federated Hermes by 3,229.0% in the third quarter. Schneider Downs Wealth Management Advisors LP now owns 2,657,263 shares of the company’s stock valued at $137,992,000 after purchasing an additional 2,577,442 shares in the last quarter. Finally, Qube Research & Technologies Ltd grew its position in shares of Federated Hermes by 28.2% in the third quarter. Qube Research & Technologies Ltd now owns 778,946 shares of the company’s stock valued at $40,451,000 after purchasing an additional 171,442 shares in the last quarter. 75.94% of the stock is 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.