Zacks Investment Research cut shares of Federated Investors (NYSE:FII) from a buy rating to a hold rating in a research report released on Monday.
According to Zacks, “Shares of Federated have outperformed the industry over the past six months. Also, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters. Federated’s top-line continues to get support from the rise in interest rates and increasing AUM. Also, its inorganic growth strategies to expand fund offerings encourage us. Though, mounting expenses remain a major concern, declining voluntary fee waivers remain a tailwind.”
Several other equities research analysts have also issued reports on FII. Deutsche Bank dropped their price objective on Federated Investors from $34.00 to $32.00 and set a hold rating for the company in a research note on Tuesday, March 6th. Citigroup upgraded Federated Investors from a sell rating to a neutral rating in a research report on Monday, March 5th. Royal Bank of Canada raised their price target on Federated Investors to $37.00 and gave the company a sector perform rating in a research report on Monday, January 29th. ValuEngine upgraded Federated Investors from a hold rating to a buy rating in a research report on Thursday, November 30th. Finally, JPMorgan Chase & Co. downgraded Federated Investors from a neutral rating to an underweight rating and set a $31.00 price target on the stock. in a research report on Monday, January 8th. Three research analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has issued a buy rating to the company’s stock. Federated Investors presently has an average rating of Hold and a consensus target price of $31.63.
Federated Investors (NYSE:FII) last posted its quarterly earnings data on Thursday, January 25th. The asset manager reported $0.61 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.58 by $0.03. The company had revenue of $278.31 million during the quarter, compared to analyst estimates of $283.45 million. Federated Investors had a return on equity of 33.23% and a net margin of 26.42%. The firm’s quarterly revenue was down 4.0% on a year-over-year basis. During the same quarter last year, the company earned $0.52 earnings per share. equities analysts expect that Federated Investors will post 2.77 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which was paid on Thursday, February 15th. Shareholders of record on Thursday, February 8th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Wednesday, February 7th. This represents a $1.00 dividend on an annualized basis and a yield of 3.02%. Federated Investors’s payout ratio is 34.60%.
In other news, VP John B. Fisher sold 11,683 shares of Federated Investors stock in a transaction dated Wednesday, March 7th. The stock was sold at an average price of $34.16, for a total value of $399,091.28. Following the transaction, the vice president now owns 563,267 shares in the company, valued at $19,241,200.72. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Peter J. Germain sold 9,654 shares of Federated Investors stock in a transaction dated Tuesday, January 2nd. The stock was sold at an average price of $36.04, for a total value of $347,930.16. Following the completion of the transaction, the executive vice president now owns 68,987 shares in the company, valued at approximately $2,486,291.48. The disclosure for this sale can be found here. In the last quarter, insiders sold 27,457 shares of company stock worth $956,416. Company insiders own 7.10% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Elkfork Partners LLC purchased a new position in shares of Federated Investors in the fourth quarter worth about $306,000. Xact Kapitalforvaltning AB purchased a new position in shares of Federated Investors in the fourth quarter worth about $287,000. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp increased its holdings in shares of Federated Investors by 11.7% in the fourth quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 163,000 shares of the asset manager’s stock worth $5,881,000 after buying an additional 17,100 shares during the period. MetLife Investment Advisors LLC purchased a new position in shares of Federated Investors in the fourth quarter worth about $2,165,000. Finally, BB&T Securities LLC purchased a new position in shares of Federated Investors in the fourth quarter worth about $232,000. Hedge funds and other institutional investors own 85.64% of the company’s stock.
WARNING: “Zacks Investment Research Downgrades Federated Investors (FII) to Hold” was originally published by BBNS and is the property of of BBNS. If you are viewing this report on another website, it was illegally copied and republished in violation of U.S. and international copyright law. The original version of this report can be accessed at https://baseballnewssource.com/2018/03/15/zacks-investment-research-downgrades-federated-investors-fii-to-hold/2036270.html.
About Federated Investors
Federated Investors, Inc (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Federated Investors Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Federated Investors and related companies with MarketBeat.com's FREE daily email newsletter.