Federated Hermes (NYSE:FHI) Rating Lowered to “Hold” at Wall Street Zen

Federated Hermes (NYSE:FHI) was downgraded by research analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Saturday.

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

Federated Hermes Price Performance

Shares of Federated Hermes stock opened at $54.18 on Friday. The business has a 50 day simple moving average of $56.63 and a two-hundred day simple moving average of $53.46. Federated Hermes has a 12 month low of $41.04 and a 12 month high of $59.05. The stock has a market capitalization of $4.12 billion, a P/E ratio of 10.50, a PEG ratio of 1.89 and a beta of 0.67. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.28 and a quick ratio of 2.30.

Federated Hermes (NYSE:FHI) last announced its earnings results on Thursday, April 30th. The company reported $1.27 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.07. Federated Hermes had a return on equity of 33.90% and a net margin of 21.47%.The business had revenue of $478.96 million during the quarter, compared to analysts’ expectations of $475.22 million. During the same quarter in the prior year, the firm earned $1.25 earnings per share. The business’s revenue was up 13.1% compared to the same quarter last year. As a group, analysts predict that Federated Hermes will post 5.08 EPS for the current fiscal year.

Insider Transactions at Federated Hermes

In other Federated Hermes news, VP Paul A. Uhlman sold 72,392 shares of the firm’s stock in a transaction on 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 owned 263,987 shares of the company’s stock, valued at $14,843,989.01. This trade represents a 21.52% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 4.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Federated Hermes

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Torren Management LLC acquired a new stake in Federated Hermes during the fourth quarter worth $25,000. MAI Capital Management increased its stake in Federated Hermes by 86.7% during the third quarter. MAI Capital Management now owns 476 shares of the company’s stock worth $25,000 after acquiring an additional 221 shares during the last quarter. Root Financial Partners LLC increased its stake in Federated Hermes by 71.0% during the first quarter. Root Financial Partners LLC now owns 571 shares of the company’s stock worth $32,000 after acquiring an additional 237 shares during the last quarter. CIBC Private Wealth Group LLC increased its stake in 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 acquiring an additional 401 shares during the last quarter. Finally, Parkside Financial Bank & Trust increased its stake in Federated Hermes by 145.8% during the fourth quarter. Parkside Financial Bank & Trust now owns 848 shares of the company’s stock worth $44,000 after acquiring an additional 503 shares during the last quarter. Institutional investors and hedge funds own 75.94% of the company’s stock.

Trending Headlines about 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

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.