Zacks Research Expects Higher Earnings for Federated Hermes

Federated Hermes, Inc. (NYSE:FHI) – Analysts at Zacks Research increased their Q4 2025 earnings estimates for shares of Federated Hermes in a note issued to investors on Thursday, October 16th. Zacks Research analyst Team now forecasts that the company will post earnings of $1.04 per share for the quarter, up from their previous forecast of $1.03. Zacks Research has a “Strong-Buy” rating on the stock. The consensus estimate for Federated Hermes’ current full-year earnings is $4.04 per share.

Federated Hermes (NYSE:FHI) last posted its quarterly earnings data on Thursday, July 31st. The company reported $1.16 earnings per share for the quarter, topping the consensus estimate of $0.99 by $0.17. Federated Hermes had a net margin of 21.67% and a return on equity of 32.30%. The firm had revenue of $424.84 million during the quarter, compared to analysts’ expectations of $424.83 million. During the same quarter in the previous year, the company posted $0.96 EPS. Federated Hermes’s revenue was up 5.5% on a year-over-year basis.

FHI has been the subject of several other research reports. Wall Street Zen cut shares of Federated Hermes from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 2nd. Royal Bank Of Canada upped their target price on shares of Federated Hermes from $45.00 to $51.00 and gave the company a “sector perform” rating in a research report on Thursday, August 14th. Weiss Ratings reiterated a “buy (b)” rating on shares of Federated Hermes in a research report on Wednesday, October 8th. JPMorgan Chase & Co. upped their target price on shares of Federated Hermes from $54.00 to $55.00 and gave the company a “neutral” rating in a research report on Tuesday, October 7th. Finally, Evercore ISI upped their target price 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. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $48.33.

Federated Hermes Stock Performance

FHI stock opened at $51.75 on Monday. The company has a 50 day moving average price of $52.60 and a 200 day moving average price of $46.55. The stock has a market capitalization of $4.01 billion, a PE ratio of 11.47, a price-to-earnings-growth ratio of 0.58 and a beta of 0.80. Federated Hermes has a fifty-two week low of $35.05 and a fifty-two week high of $54.42. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.37 and a quick ratio of 2.32.

Institutional Trading of Federated Hermes

A number of large investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Federated Hermes by 3.1% in the 1st quarter. Vanguard Group Inc. now owns 8,760,811 shares of the company’s stock valued at $357,178,000 after buying an additional 265,590 shares in the last quarter. Charles Schwab Investment Management Inc. boosted its stake in Federated Hermes by 249.7% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 3,199,554 shares of the company’s stock worth $130,446,000 after purchasing an additional 2,284,509 shares during the period. AQR Capital Management LLC boosted its stake in Federated Hermes by 20.1% in the 2nd 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. boosted its stake in Federated Hermes by 6.2% in the 1st quarter. Invesco Ltd. now owns 2,367,754 shares of the company’s stock worth $96,533,000 after purchasing an additional 137,248 shares during the period. Finally, LSV Asset Management boosted its stake in Federated Hermes by 77.6% in the 2nd quarter. LSV Asset Management now owns 1,966,142 shares of the company’s stock worth $87,139,000 after purchasing an additional 859,053 shares during the period. Institutional investors own 75.94% of the company’s stock.

Federated Hermes Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, August 15th. Investors of record on Friday, August 8th were given a $0.34 dividend. The ex-dividend date was Friday, August 8th. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.6%. Federated Hermes’s dividend payout ratio is currently 30.16%.

About Federated Hermes

Federated Hermes, Inc is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.