Federated Hermes (NYSE:FHI) Sets New 12-Month High – Still a Buy?

Federated Hermes, Inc. (NYSE:FHI)’s stock price hit a new 52-week high during trading on Thursday . The stock traded as high as $54.68 and last traded at $54.2940, with a volume of 902757 shares. The stock had previously closed at $53.34.

Analysts Set New Price Targets

FHI has been the topic of a number of recent research reports. Wall Street Zen raised Federated Hermes from a “buy” rating to a “strong-buy” rating in a research report on Saturday, January 10th. Weiss Ratings restated a “buy (b)” rating on shares of Federated Hermes in a research note on Wednesday, October 8th. TD Cowen reiterated a “hold” rating on shares of Federated Hermes in a research note on Wednesday, January 14th. JPMorgan Chase & Co. increased their price objective on Federated Hermes from $55.00 to $56.00 and gave the company a “neutral” rating in a report on Monday, November 3rd. Finally, Zacks Research cut shares of Federated Hermes from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 9th. Two investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $51.20.

Federated Hermes Trading Up 1.8%

The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.58 and a current ratio of 3.13. The company has a market capitalization of $4.21 billion, a price-to-earnings ratio of 11.33, a price-to-earnings-growth ratio of 0.55 and a beta of 0.75. The firm has a fifty day moving average price of $51.69 and a 200-day moving average price of $51.13.

Federated Hermes (NYSE:FHI) last announced its quarterly earnings data on Thursday, October 30th. The company reported $1.34 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.11 by $0.23. Federated Hermes had a net margin of 21.86% and a return on equity of 33.03%. The firm had revenue of $469.45 million for the quarter, compared to the consensus estimate of $442.67 million. During the same period in the prior year, the company posted $1.06 earnings per share. The business’s revenue for the quarter was up 14.9% on a year-over-year basis. As a group, equities analysts anticipate that Federated Hermes, Inc. will post 4.04 EPS for the current year.

Federated Hermes Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, November 14th. Investors of record on Friday, November 7th were given a dividend of $0.34 per share. The ex-dividend date was Friday, November 7th. This represents a $1.36 annualized dividend and a dividend yield of 2.5%. Federated Hermes’s dividend payout ratio (DPR) is currently 28.39%.

Insider Activity at Federated Hermes

In other Federated Hermes news, insider Richard A. Novak sold 1,249 shares of the firm’s stock in a transaction on Wednesday, November 19th. The stock was sold at an average price of $47.85, for a total value of $59,764.65. Following the sale, the insider owned 57,500 shares of the company’s stock, valued at approximately $2,751,375. This trade represents a 2.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP Dolores D. Dudiak sold 999 shares of Federated Hermes stock in a transaction on Wednesday, November 19th. The shares were sold at an average price of $47.87, for a total value of $47,822.13. Following the completion of the transaction, the vice president owned 88,223 shares in the company, valued at approximately $4,223,235.01. The trade was a 1.12% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 21,709 shares of company stock valued at $1,049,146 over the last three months. 3.80% of the stock is owned by insiders.

Institutional Trading of Federated Hermes

Institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC grew its position in Federated Hermes by 8.3% in the fourth quarter. GAMMA Investing LLC now owns 2,734 shares of the company’s stock worth $142,000 after acquiring an additional 210 shares in the last quarter. MAI Capital Management raised its position in Federated Hermes by 86.7% during the third quarter. MAI Capital Management now owns 476 shares of the company’s stock valued at $25,000 after purchasing an additional 221 shares in the last quarter. Diversified Trust Co lifted its stake in Federated Hermes by 2.6% during the second quarter. Diversified Trust Co now owns 9,036 shares of the company’s stock worth $400,000 after purchasing an additional 229 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its stake in Federated Hermes by 0.4% during the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 68,934 shares of the company’s stock worth $3,580,000 after purchasing an additional 272 shares during the last quarter. Finally, Cibc World Market Inc. boosted its holdings in shares of Federated Hermes by 0.3% in the 3rd quarter. Cibc World Market Inc. now owns 115,930 shares of the company’s stock worth $6,020,000 after purchasing an additional 331 shares in the last quarter. 75.94% of the stock is currently owned by 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.