Federated Hermes (NYSE:FHI) Hits New 12-Month High – Time to Buy?

Federated Hermes, Inc. (NYSE:FHI) shares hit a new 52-week high during mid-day trading on Wednesday . The company traded as high as $60.96 and last traded at $60.6050, with a volume of 62398 shares trading hands. The stock had previously closed at $60.53.

Wall Street Analyst Weigh In

Several analysts recently weighed in on the company. Weiss Ratings restated a “buy (b)” rating on shares of Federated Hermes in a report on Friday, July 17th. JPMorgan Chase & Co. dropped their target price on Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a research note on Monday, May 4th. Royal Bank Of Canada raised their price target on shares of Federated Hermes from $54.00 to $57.00 and gave the stock a “sector perform” rating in a report on Thursday, July 2nd. Wall Street Zen downgraded Federated Hermes from a “buy” rating to a “hold” rating in a report on Saturday, May 2nd. Finally, TD Cowen cut their price target on Federated Hermes from $58.00 to $54.00 and set a “hold” rating on the stock in a research report on Monday, May 4th. Two research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $55.75.

Federated Hermes Stock Performance

The firm’s 50 day moving average is $57.41 and its 200-day moving average is $56.13. The company has a market cap of $4.60 billion, a PE ratio of 11.76, a PEG ratio of 1.60 and a beta of 0.65. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.73 and a current ratio of 3.28.

Federated Hermes (NYSE:FHI) last released its quarterly earnings data on Thursday, April 30th. The company reported $1.27 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.20 by $0.07. Federated Hermes had a net margin of 21.47% and a return on equity of 33.90%. The firm had revenue of $478.96 million during the quarter, compared to analysts’ expectations of $475.22 million. During the same period last year, the business earned $1.25 earnings per share. Federated Hermes’s revenue was up 13.1% compared to the same quarter last year. On average, research analysts anticipate that Federated Hermes, Inc. will post 5.24 earnings per share for the current fiscal year.

Federated Hermes Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, May 15th. Shareholders of record on Friday, May 8th were given a $0.38 dividend. The ex-dividend date of this dividend was Friday, May 8th. This represents a $1.52 dividend on an annualized basis and a yield of 2.5%. This is an increase from Federated Hermes’s previous quarterly dividend of $0.34. Federated Hermes’s dividend payout ratio is 29.46%.

Insiders Place Their Bets

In other news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $57.34, for a total transaction of $513,193.00. Following the completion of the transaction, the chief executive officer directly owned 151,276 shares of the company’s stock, valued at approximately $8,674,165.84. This represents a 5.59% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, VP Bryan M. Burke sold 4,000 shares of the firm’s stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total transaction of $216,800.00. Following the sale, the vice president directly owned 74,921 shares in the company, valued at approximately $4,060,718.20. The trade was a 5.07% decrease in their position. The SEC filing for this sale provides additional information. 4.20% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Torren Management LLC purchased a new stake in Federated Hermes during the 4th quarter valued at approximately $25,000. Root Financial Partners LLC increased its holdings in shares of Federated Hermes by 71.0% in the first quarter. Root Financial Partners LLC now owns 571 shares of the company’s stock valued at $32,000 after purchasing an additional 237 shares during the period. CIBC Private Wealth Group LLC raised its stake 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 purchasing an additional 401 shares during the last quarter. Parkside Financial Bank & Trust lifted its holdings in shares of 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 purchasing an additional 503 shares during the period. Finally, Caitong International Asset Management Co. Ltd grew its position in Federated Hermes by 220.8% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 863 shares of the company’s stock valued at $45,000 after buying an additional 594 shares during the last quarter. 75.94% of the stock is currently owned by institutional investors and hedge funds.

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.