Federated Hermes (NYSE:FHI) Reaches New 52-Week High – Here’s Why

Federated Hermes, Inc. (NYSE:FHI) shares hit a new 52-week high on Tuesday . The company traded as high as $59.05 and last traded at $58.9630, with a volume of 119667 shares trading hands. The stock had previously closed at $58.21.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on FHI shares. TD Cowen reduced their target price on Federated Hermes from $58.00 to $54.00 and set a “hold” rating for the company in a report on Monday, May 4th. Evercore reiterated an “outperform” rating and issued a $59.00 price objective on shares of Federated Hermes in a research note on Monday, June 8th. Wall Street Zen downgraded Federated Hermes from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. JPMorgan Chase & Co. cut their target price on shares of Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a report on Monday, May 4th. Finally, Royal Bank Of Canada reduced their price target on shares of Federated Hermes from $56.00 to $54.00 and set a “sector perform” rating for the company in a research report on Wednesday, May 6th. Two research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Federated Hermes has an average rating of “Hold” and an average target price of $55.00.

Federated Hermes Stock Performance

The company has a market cap of $4.47 billion, a PE ratio of 11.42, a P/E/G ratio of 2.10 and a beta of 0.65. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.73 and a current ratio of 3.28. The stock’s 50-day simple moving average is $56.38 and its 200 day simple moving average is $54.95.

Federated Hermes (NYSE:FHI) last released its earnings results on Thursday, April 30th. The company reported $1.27 EPS for the quarter, topping the consensus estimate of $1.20 by $0.07. Federated Hermes had a net margin of 21.47% and a return on equity of 33.90%. The company had revenue of $478.96 million during the quarter, compared to analysts’ expectations of $475.22 million. During the same quarter last year, the business earned $1.25 EPS. The business’s revenue was up 13.1% on a year-over-year basis. As a group, equities analysts anticipate that Federated Hermes, Inc. will post 5.1 EPS for the current year.

Federated Hermes Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 15th. Investors of record on Friday, May 8th were given a $0.38 dividend. The ex-dividend date was Friday, May 8th. This is an increase from Federated Hermes’s previous quarterly dividend of $0.34. This represents a $1.52 dividend on an annualized basis and a yield of 2.6%. Federated Hermes’s payout ratio is 29.46%.

Insider Buying and Selling

In other Federated Hermes news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the business’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $57.34, for a total transaction of $513,193.00. Following the transaction, the chief executive officer owned 151,276 shares in the company, valued at approximately $8,674,165.84. The trade was a 5.59% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Bryan M. Burke sold 4,000 shares of the business’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total value of $216,800.00. Following the transaction, the vice president owned 74,921 shares in the company, valued at $4,060,718.20. The trade was a 5.07% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 4.20% of the stock is currently owned by insiders.

Institutional Trading of Federated Hermes

A number of institutional investors have recently modified their holdings of the business. Jupiter Asset Management Ltd. increased its holdings in shares of Federated Hermes by 2,427.2% in the 3rd quarter. Jupiter Asset Management Ltd. now owns 527,368 shares of the company’s stock valued at $27,386,000 after purchasing an additional 506,500 shares in the last quarter. Burney Co. boosted its holdings in Federated Hermes by 61.8% during the fourth quarter. Burney Co. now owns 218,661 shares of the company’s stock worth $11,386,000 after buying an additional 83,529 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in Federated Hermes by 36.7% during the fourth quarter. Assenagon Asset Management S.A. now owns 116,278 shares of the company’s stock worth $6,055,000 after buying an additional 31,240 shares in the last quarter. WINTON GROUP Ltd acquired a new position in Federated Hermes during the third quarter worth about $6,279,000. Finally, LSV Asset Management grew its position in Federated Hermes by 20.4% during the fourth quarter. LSV Asset Management now owns 2,890,276 shares of the company’s stock worth $150,497,000 after buying an additional 489,275 shares during the period. 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.