Federated Hermes (NYSE:FHI) Posts Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Federated Hermes (NYSE:FHI) released its quarterly earnings data on Thursday. The company reported $1.39 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.19, FiscalAI reports. The company had revenue of $482.83 million during the quarter, compared to analyst estimates of $468.45 million. Federated Hermes had a net margin of 22.40% and a return on equity of 34.79%. The business’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 earnings per share.

Federated Hermes Trading Up 0.5%

FHI opened at $53.31 on Friday. Federated Hermes has a 12-month low of $35.05 and a 12-month high of $55.13. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.13 and a quick ratio of 2.58. The stock has a market capitalization of $4.13 billion, a PE ratio of 10.37, a P/E/G ratio of 0.55 and a beta of 0.75. The firm’s fifty day moving average price is $52.38 and its 200 day moving average price is $51.45.

Federated Hermes Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, February 13th. Investors of record on Friday, February 6th will be paid a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Friday, February 6th. Federated Hermes’s payout ratio is 26.46%.

Insiders Place Their Bets

In other news, CEO Saker Anwar Nusseibeh sold 15,000 shares of the stock in a transaction dated Monday, November 3rd. The shares were sold at an average price of $48.54, for a total transaction of $728,100.00. Following the transaction, the chief executive officer owned 157,039 shares of the company’s stock, valued at approximately $7,622,673.06. This trade represents a 8.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Richard A. Novak sold 1,249 shares of Federated Hermes stock in a transaction dated Wednesday, November 19th. The stock was sold at an average price of $47.85, for a total value of $59,764.65. Following the completion of the transaction, the insider owned 57,500 shares of the company’s stock, valued at $2,751,375. This trade represents a 2.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 21,709 shares of company stock valued at $1,049,146 in the last ninety days. Corporate insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of FHI. Mercer Global Advisors Inc. ADV lifted its stake in Federated Hermes by 6.1% during the third quarter. Mercer Global Advisors Inc. ADV now owns 7,603 shares of the company’s stock worth $395,000 after purchasing an additional 434 shares during the last quarter. Schonfeld Strategic Advisors LLC raised its holdings in shares of Federated Hermes by 19.1% during the third quarter. Schonfeld Strategic Advisors LLC now owns 9,573 shares of the company’s stock worth $497,000 after purchasing an additional 1,536 shares during the period. Perbak Capital Partners LLP bought a new position in shares of Federated Hermes in the 3rd quarter worth about $447,000. State of Wyoming lifted its position in shares of Federated Hermes by 6.2% in the 2nd quarter. State of Wyoming now owns 7,532 shares of the company’s stock worth $334,000 after buying an additional 438 shares during the last quarter. Finally, Quantinno Capital Management LP bought a new stake in shares of Federated Hermes during the 2nd quarter valued at about $342,000. Institutional investors own 75.94% of the company’s stock.

Federated Hermes News Summary

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

• Positive Sentiment: Q4 earnings beat and full-year strength — FHI posted Q4 EPS of $1.39 versus consensus ~$1.20 and revenue of $482.8M (up 13.7% YoY); full-year 2025 EPS was $5.13, reflecting sizable net-income growth. Read More.
• Positive Sentiment: Record AUM — Total assets under management reached a record $902.6B, driven by a record $682.6B in money-market AUM, a positive signal for fee-related revenue and cash-management flows. Read More.
• Positive Sentiment: Dividend declared — The board approved a $0.34 quarterly dividend (ex-dividend Feb 6; record Feb 6; pay Feb 13), supporting income-oriented shareholder demand and reflecting strong cash generation. Read More.
• Positive Sentiment: Analyst/market interest — Coverage highlights FHI as an attractive dividend and momentum stock, which can help demand from income and momentum-focused investors. Read More. Read More.
• Neutral Sentiment: Full transcript and investor materials available — Management commentary and the earnings transcript provide more detail on inflows, margin drivers and outlook; useful for assessing sustainability of flows and fee revenue. Read More.
• Negative Sentiment: Rising costs weighed on results — Some coverage notes higher operating costs that trimmed margins despite revenue gains, a potential headwind if expense growth continues. Read More.

Analyst Ratings Changes

FHI has been the subject of several recent research reports. Wall Street Zen downgraded Federated Hermes from a “strong-buy” rating to a “buy” rating in a report on Saturday. TD Cowen reaffirmed a “hold” rating on shares of Federated Hermes in a research report on Wednesday, January 14th. Weiss Ratings reiterated a “buy (b)” rating on shares of Federated Hermes in a research note on Thursday, January 22nd. JPMorgan Chase & Co. upped their target price on shares of Federated Hermes from $55.00 to $56.00 and gave the company a “neutral” rating in a research note on Monday, November 3rd. Finally, Zacks Research downgraded shares of Federated Hermes from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, December 9th. Two analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $51.20.

About Federated Hermes

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.