Federated Hermes (NYSE:FHI) Hits New 1-Year High – Still a Buy?

Shares of Federated Hermes, Inc. (NYSE:FHI) reached a new 52-week high during mid-day trading on Wednesday . The company traded as high as $57.94 and last traded at $57.7750, with a volume of 235319 shares changing hands. The stock had previously closed at $56.33.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on FHI shares. Wall Street Zen lowered Federated Hermes from a “buy” rating to a “hold” rating in a research note on Saturday, March 14th. TD Cowen reissued a “hold” rating on shares of Federated Hermes in a research report on Wednesday, January 14th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Federated Hermes in a research report on Thursday, January 22nd. Argus upgraded shares of Federated Hermes to a “hold” rating in a research note on Monday, February 2nd. Finally, Zacks Research lowered shares of Federated Hermes from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, December 9th. Two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat, Federated Hermes currently has an average rating of “Hold” and a consensus price target of $55.00.

Federated Hermes Trading Up 1.9%

The firm has a market cap of $4.36 billion, a price-to-earnings ratio of 11.16, a price-to-earnings-growth ratio of 1.97 and a beta of 0.73. The company has a quick ratio of 2.30, a current ratio of 2.75 and a debt-to-equity ratio of 0.29. The business has a 50 day moving average price of $54.89 and a 200-day moving average price of $52.57.

Federated Hermes (NYSE:FHI) last released its quarterly earnings results on Thursday, January 29th. The company reported $1.39 earnings per share for the quarter, topping analysts’ consensus estimates of $1.20 by $0.19. The firm had revenue of $482.83 million during the quarter, compared to analysts’ expectations of $468.45 million. Federated Hermes had a return on equity of 34.25% and a net margin of 22.40%.Federated Hermes’s quarterly revenue was up 13.7% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.04 EPS. As a group, research analysts expect that Federated Hermes, Inc. will post 4.04 EPS for the current fiscal year.

Federated Hermes Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, February 13th. Investors of record on Friday, February 6th were paid a dividend of $0.34 per share. The ex-dividend date of this dividend was Friday, February 6th. This represents a $1.36 annualized dividend and a yield of 2.4%. Federated Hermes’s payout ratio is 26.46%.

Insiders Place Their Bets

In other news, VP Paul A. Uhlman sold 72,392 shares of the firm’s stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $56.23, for a total transaction of $4,070,602.16. Following the completion of the sale, the vice president directly owned 263,987 shares in the company, valued at $14,843,989.01. This trade represents a 21.52% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 3.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. MAI Capital Management increased its holdings in Federated Hermes by 86.7% during the 3rd quarter. MAI Capital Management now owns 476 shares of the company’s stock worth $25,000 after purchasing an additional 221 shares during the last quarter. Torren Management LLC acquired a new stake in shares of Federated Hermes during the fourth quarter worth approximately $25,000. CIBC Private Wealth Group LLC grew its position in shares of Federated Hermes by 119.7% during the fourth quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company’s stock worth $38,000 after buying an additional 401 shares in the last quarter. Parkside Financial Bank & Trust increased its stake in shares of Federated Hermes by 145.8% in the fourth quarter. Parkside Financial Bank & Trust now owns 848 shares of the company’s stock worth $44,000 after buying an additional 503 shares during the last quarter. Finally, Farther Finance Advisors LLC raised its holdings in Federated Hermes by 97.7% in the third quarter. Farther Finance Advisors LLC now owns 870 shares of the company’s stock valued at $45,000 after acquiring an additional 430 shares in the last quarter. Hedge funds and other institutional investors own 75.94% of the company’s stock.

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.