Federated Hermes (NYSE:FHI) Reaches New 1-Year High – Should You Buy?

Federated Hermes, Inc. (NYSE:FHI)’s stock price hit a new 52-week high during mid-day trading on Thursday . The company traded as high as $55.53 and last traded at $55.0830, with a volume of 62272 shares trading hands. The stock had previously closed at $53.87.

Analyst Ratings Changes

Several research firms have weighed in on FHI. Wall Street Zen cut Federated Hermes from a “strong-buy” rating to a “buy” rating in a research note on Saturday, January 31st. Zacks Research cut Federated Hermes from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 9th. JPMorgan Chase & Co. upped their price objective on Federated Hermes from $55.00 to $56.00 and gave the stock a “neutral” rating in a research report on Monday, November 3rd. TD Cowen reiterated a “hold” rating on shares of Federated Hermes in a research report on Wednesday, January 14th. Finally, Royal Bank Of Canada reissued a “sector perform” rating and set a $55.00 target price (up previously from $54.00) on shares of Federated Hermes in a research note on Tuesday, February 3rd. Two equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $55.00.

Federated Hermes Price Performance

The business has a 50-day moving average of $53.06 and a two-hundred day moving average of $51.86. The company has a current ratio of 2.75, a quick ratio of 2.58 and a debt-to-equity ratio of 0.29. The firm has a market cap of $4.30 billion, a P/E ratio of 10.78, a price-to-earnings-growth ratio of 0.53 and a beta of 0.74.

Federated Hermes (NYSE:FHI) last announced its quarterly earnings results on Thursday, January 29th. The company reported $1.39 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.19. Federated Hermes had a return on equity of 34.25% and a net margin of 22.40%.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 earnings per share. The business’s revenue for the quarter was up 13.7% on a year-over-year basis. On average, sell-side analysts anticipate that Federated Hermes, Inc. will post 4.04 earnings per share for the current fiscal year.

Federated Hermes Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 13th. Shareholders of record on Friday, February 6th were given a $0.34 dividend. This represents a $1.36 annualized dividend and a yield of 2.5%. The ex-dividend date was Friday, February 6th. Federated Hermes’s dividend payout ratio is 26.46%.

Insider Activity

In other news, VP Dolores D. Dudiak sold 999 shares of the firm’s stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $47.87, for a total transaction of $47,822.13. Following the completion of the transaction, the vice president owned 88,223 shares of the company’s stock, valued at approximately $4,223,235.01. This trade represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Saker Anwar Nusseibeh sold 4,461 shares of the business’s stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $47.85, for a total transaction of $213,458.85. Following the completion of the sale, the chief executive officer directly owned 161,578 shares in the company, valued at approximately $7,731,507.30. This represents a 2.69% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 6,709 shares of company stock valued at $321,046. Insiders own 3.80% of the company’s stock.

Institutional Trading of Federated Hermes

A number of institutional investors have recently bought and sold shares of FHI. Charles Schwab Investment Management Inc. raised its position in shares of Federated Hermes by 0.4% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 3,032,060 shares of the company’s stock worth $157,879,000 after acquiring an additional 12,348 shares in the last quarter. AQR Capital Management LLC grew its stake in Federated Hermes by 20.1% during the second quarter. AQR Capital Management LLC now owns 2,978,885 shares of the company’s stock worth $132,024,000 after purchasing an additional 498,202 shares during the period. Invesco Ltd. increased its holdings in Federated Hermes by 29.6% in the third quarter. Invesco Ltd. now owns 2,939,908 shares of the company’s stock worth $152,669,000 after purchasing an additional 670,643 shares in the last quarter. LSV Asset Management increased its holdings in Federated Hermes by 20.4% in the fourth quarter. LSV Asset Management now owns 2,890,276 shares of the company’s stock worth $150,497,000 after purchasing an additional 489,275 shares in the last quarter. Finally, Schneider Downs Wealth Management Advisors LP lifted its stake in 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 buying an additional 2,577,442 shares during the period. Institutional investors 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.