Federated Hermes (NYSE:FHI) Posts Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Federated Hermes (NYSE:FHI) announced its quarterly earnings data on Thursday. The company reported $1.38 EPS for the quarter, beating analysts’ consensus estimates of $1.19 by $0.19, Zacks reports. Federated Hermes had a net margin of 21.47% and a return on equity of 33.90%. Federated Hermes’s revenue was up 18.3% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.16 EPS.

Federated Hermes Stock Performance

Shares of NYSE:FHI traded down $0.45 during trading on Thursday, reaching $59.63. The stock had a trading volume of 663,799 shares, compared to its average volume of 538,824. The company has a quick ratio of 2.73, a current ratio of 3.28 and a debt-to-equity ratio of 0.29. The stock has a fifty day simple moving average of $57.65 and a two-hundred day simple moving average of $56.23. The firm has a market capitalization of $4.53 billion, a price-to-earnings ratio of 11.56, a P/E/G ratio of 1.62 and a beta of 0.65. Federated Hermes has a 52 week low of $46.66 and a 52 week high of $61.01.

Wall Street Analyst Weigh In

Several brokerages have recently commented on FHI. TD Cowen dropped their price target on shares of Federated Hermes from $58.00 to $54.00 and set a “hold” rating on the stock in a research note on Monday, May 4th. Weiss Ratings reiterated a “buy (b)” rating on shares of Federated Hermes in a report on Friday, July 17th. Wall Street Zen downgraded shares of Federated Hermes from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. Evercore restated an “outperform” rating and set a $59.00 target price on shares of Federated Hermes in a report on Monday, June 8th. Finally, Royal Bank Of Canada boosted their price target on Federated Hermes from $54.00 to $57.00 and gave the stock a “sector perform” rating in a research report on Thursday, July 2nd. Two equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $55.75.

Insiders Place Their Bets

In other Federated Hermes news, VP Bryan M. Burke sold 4,000 shares of the business’s stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $54.20, for a total transaction of $216,800.00. Following the completion of the transaction, the vice president owned 74,921 shares of the company’s stock, valued at $4,060,718.20. The trade was a 5.07% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Saker Anwar Nusseibeh sold 8,950 shares of the company’s stock in a transaction dated Monday, June 8th. The shares were sold at an average price of $57.34, for a total transaction 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 disclosure for this sale is available in the SEC filing. Company insiders own 4.20% of the company’s stock.

Hedge Funds Weigh In On Federated Hermes

Several large investors have recently made changes to their positions in FHI. AQR Capital Management LLC boosted its stake in Federated Hermes by 1.7% during the 4th quarter. AQR Capital Management LLC now owns 3,036,239 shares of the company’s stock valued at $158,097,000 after purchasing an additional 50,067 shares during the period. Charles Schwab Investment Management Inc. lifted its holdings in shares of Federated Hermes by 0.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,032,060 shares of the company’s stock worth $157,879,000 after buying an additional 12,348 shares during the last quarter. Invesco Ltd. boosted its position in shares of Federated Hermes by 29.6% in the third quarter. Invesco Ltd. now owns 2,939,908 shares of the company’s stock valued at $152,669,000 after acquiring an additional 670,643 shares during the period. Schneider Downs Wealth Management Advisors LP grew its stake 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 worth $137,992,000 after acquiring an additional 2,577,442 shares during the last quarter. Finally, Victory Capital Management Inc. increased its position in Federated Hermes by 78.9% during the fourth quarter. Victory Capital Management Inc. now owns 1,394,622 shares of the company’s stock worth $72,618,000 after acquiring an additional 615,130 shares during the period. Institutional investors and hedge funds 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.