Federated Hermes, Inc. (NYSE:FHI) Sees Large Growth in Short Interest

Federated Hermes, Inc. (NYSE:FHI) was the recipient of a significant increase in short interest in April. As of April 15th, there was short interest totaling 3,152,471 shares, an increase of 14.7% from the March 31st total of 2,747,264 shares. Currently, 4.3% of the shares of the stock are sold short. Based on an average daily trading volume, of 832,672 shares, the short-interest ratio is currently 3.8 days.

Key Stories Impacting Federated Hermes

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Record assets under management — Federated Hermes reported record total AUM of $907.1 billion (money market and equity inflows drove gains), supporting fee revenue growth and demonstrating scale that should help future fee income. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Positive Sentiment: Q1 beat on EPS and revenue — Q1 EPS of $1.27 topped consensus (~$1.20) and revenue of $479M beat expectations; revenue was up ~13% year-over-year, indicating healthy top-line momentum. Federated Hermes (FHI) Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Dividend increased — Board raised the quarterly dividend ~11.8% to $0.38/share (annualized yield ~2.7%), signaling confidence in cash flow and returning capital to shareholders. Federated Hermes, Inc. reports record assets under management with first quarter 2026 earnings
• Neutral Sentiment: Earnings call and prepared remarks — Management commentary and the conference call transcript provide more detail on flow dynamics, product performance and strategic priorities; these are useful for assessing sustainability of fee growth. Federated Hermes, Inc. (FHI) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Prepared remarks available — The shareholder/analyst prepared remarks give additional color on sources of growth and capital allocation but don’t materially change the headline results. Federated Hermes, Inc. (FHI) Shareholder/Analyst Call Prepared Remarks Transcript
• Negative Sentiment: Rising expenses and margin pressure — Analysts and reports note higher operating expenses that weighed on net income (Q1 net income fell vs. prior year, partly influenced by a prior-year VAT refund). That margin pressure appears to be the main reason investors are selling despite revenue/AUM strength. Federated Hermes Q1 Earnings Beat Estimates, AUM Reaches Record Level

Insider Buying and Selling at Federated Hermes

In other news, VP Paul A. Uhlman sold 72,392 shares of the firm’s stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $56.23, for a total value of $4,070,602.16. Following the transaction, the vice president directly owned 263,987 shares of the company’s stock, valued at approximately $14,843,989.01. This trade represents a 21.52% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Corporate insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Federated Hermes

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Fifth Third Bancorp raised its stake in shares of Federated Hermes by 4,178.2% in the 1st quarter. Fifth Third Bancorp now owns 25,327 shares of the company’s stock valued at $1,436,000 after acquiring an additional 24,735 shares during the period. Sequoia Financial Advisors LLC raised its stake in shares of Federated Hermes by 9.1% in the 1st quarter. Sequoia Financial Advisors LLC now owns 38,189 shares of the company’s stock valued at $2,166,000 after acquiring an additional 3,176 shares during the period. Hsbc Holdings PLC raised its stake in shares of Federated Hermes by 51.1% in the 1st quarter. Hsbc Holdings PLC now owns 35,245 shares of the company’s stock valued at $2,008,000 after acquiring an additional 11,920 shares during the period. Kestra Advisory Services LLC raised its stake in shares of Federated Hermes by 6.2% in the 1st quarter. Kestra Advisory Services LLC now owns 485,727 shares of the company’s stock valued at $27,546,000 after acquiring an additional 28,278 shares during the period. Finally, Oregon Public Employees Retirement Fund raised its stake in shares of Federated Hermes by 2.7% in the 1st quarter. Oregon Public Employees Retirement Fund now owns 15,172 shares of the company’s stock valued at $860,000 after acquiring an additional 400 shares during the period. 75.94% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on FHI. Royal Bank Of Canada reissued a “sector perform” rating and issued a $56.00 price target on shares of Federated Hermes in a research note on Tuesday, April 21st. Weiss Ratings reissued a “buy (b)” rating on shares of Federated Hermes in a research note on Tuesday, April 21st. TD Cowen reissued a “hold” rating on shares of Federated Hermes in a research note on Thursday, April 9th. JPMorgan Chase & Co. downgraded shares of Federated Hermes from a “neutral” rating to an “underweight” rating and raised their price target for the stock from $55.00 to $56.00 in a research note on Thursday, April 16th. Finally, Argus raised shares of Federated Hermes to a “hold” rating in a research note on Monday, February 2nd. Two research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $55.25.

Federated Hermes Price Performance

Shares of FHI stock opened at $54.18 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.75 and a quick ratio of 2.30. The firm’s 50-day moving average is $56.63 and its two-hundred day moving average is $53.44. Federated Hermes has a 12 month low of $41.04 and a 12 month high of $59.05. The company has a market capitalization of $4.12 billion, a PE ratio of 10.54, a price-to-earnings-growth ratio of 2.03 and a beta of 0.67.

Federated Hermes (NYSE:FHI) last issued its earnings results on Thursday, April 30th. The company reported $1.27 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.07. Federated Hermes had a net margin of 21.47% and a return on equity of 34.18%. The company had revenue of $478.96 million for the quarter, compared to the consensus estimate of $475.22 million. During the same period in the previous year, the firm earned $1.25 earnings per share. Federated Hermes’s quarterly revenue was up 13.1% compared to the same quarter last year. Analysts predict that Federated Hermes will post 5.08 earnings per share for the current year.

Federated Hermes Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, May 15th. Shareholders of record on Friday, May 8th will be paid a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.8%. This is a boost from Federated Hermes’s previous quarterly dividend of $0.34. The ex-dividend date of this dividend is Friday, May 8th. Federated Hermes’s payout ratio is presently 26.46%.

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.