Federated Hermes, Inc. (NYSE:FHI) Plans Dividend Increase – $1.31 Per Share

Federated Hermes, Inc. (NYSE:FHI) declared a None dividend on Thursday, April 25th, Zacks reports. Stockholders of record on Wednesday, May 8th will be paid a dividend of 1.31 per share on Wednesday, May 15th. The ex-dividend date of this dividend is Tuesday, May 7th. This is an increase from Federated Hermes’s previous None dividend of $1.27.

Federated Hermes has raised its dividend by an average of 0.9% per year over the last three years and has raised its dividend every year for the last 1 years. Federated Hermes has a payout ratio of 27.1% indicating that its dividend is sufficiently covered by earnings. Analysts expect Federated Hermes to earn $4.14 per share next year, which means the company should continue to be able to cover its $1.12 annual dividend with an expected future payout ratio of 27.1%.

Federated Hermes Price Performance

Shares of FHI traded down $1.35 during mid-day trading on Friday, reaching $32.80. The company had a trading volume of 1,806,404 shares, compared to its average volume of 780,194. Federated Hermes has a twelve month low of $30.23 and a twelve month high of $42.57. The company has a debt-to-equity ratio of 0.31, a current ratio of 2.51 and a quick ratio of 1.89. The company’s 50-day moving average is $35.59 and its 200-day moving average is $34.10. The company has a market capitalization of $2.77 billion, a P/E ratio of 9.32, a P/E/G ratio of 0.80 and a beta of 1.12.

Federated Hermes (NYSE:FHI) last issued its earnings results on Thursday, April 25th. The company reported $0.89 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.89. Federated Hermes had a return on equity of 27.16% and a net margin of 18.75%. The business had revenue of $396.37 million during the quarter, compared to analysts’ expectations of $400.26 million. During the same period in the prior year, the firm posted $0.78 EPS. Federated Hermes’s quarterly revenue was up 3.7% compared to the same quarter last year. On average, equities analysts anticipate that Federated Hermes will post 3.76 EPS for the current year.

Analysts Set New Price Targets

A number of research firms recently weighed in on FHI. Royal Bank of Canada raised their price target on Federated Hermes from $36.00 to $37.00 and gave the company a “sector perform” rating in a report on Monday, January 29th. TD Cowen began coverage on Federated Hermes in a report on Thursday, January 4th. They set a “market perform” rating and a $32.00 price target for the company. UBS Group raised their price target on Federated Hermes from $37.00 to $39.00 and gave the company a “neutral” rating in a report on Friday, April 12th. Finally, JPMorgan Chase & Co. raised their price target on Federated Hermes from $46.00 to $47.00 and gave the company an “overweight” rating in a report on Wednesday, April 17th. Three investment analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $38.50.

Insider Activity

In other news, insider Richard A. Novak sold 908 shares of Federated Hermes stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $36.07, for a total value of $32,751.56. Following the completion of the sale, the insider now directly owns 49,068 shares of the company’s stock, valued at approximately $1,769,882.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. In other news, insider Richard A. Novak sold 908 shares of Federated Hermes stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $36.07, for a total value of $32,751.56. Following the completion of the sale, the insider now directly owns 49,068 shares of the company’s stock, valued at approximately $1,769,882.76. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Meter Stephen Van sold 1,660 shares of Federated Hermes stock in a transaction on Tuesday, January 30th. The shares were sold at an average price of $36.15, for a total value of $60,009.00. Following the completion of the sale, the vice president now directly owns 31,689 shares of the company’s stock, valued at $1,145,557.35. The disclosure for this sale can be found here. In the last ninety days, insiders sold 115,435 shares of company stock valued at $4,092,831. Company insiders own 3.70% of the company’s stock.

Federated Hermes Company Profile

Federated Hermes, Inc is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.