Federated Hermes (NYSE:FHI) Reaches New 12-Month High – Should You Buy?

Federated Hermes, Inc. (NYSE:FHI)’s share price reached a new 52-week high during mid-day trading on Monday . The company traded as high as $39.03 and last traded at $38.88, with a volume of 180342 shares traded. The stock had previously closed at $38.70.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on FHI shares. UBS Group upped their price objective on Federated Hermes from $36.00 to $40.00 and gave the company a “neutral” rating in a research note on Tuesday. StockNews.com upgraded Federated Hermes from a “hold” rating to a “buy” rating in a research note on Friday, October 4th. Royal Bank of Canada upped their price objective on Federated Hermes from $35.00 to $36.00 and gave the company a “sector perform” rating in a research note on Friday, October 11th. TD Cowen reduced their price objective on Federated Hermes from $34.00 to $33.00 and set a “hold” rating for the company in a research note on Monday, July 29th. Finally, JPMorgan Chase & Co. upped their price objective on Federated Hermes from $46.00 to $47.00 and gave the company an “overweight” rating in a research note on Thursday, July 11th. Three investment analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $38.80.

Federated Hermes Price Performance

The firm has a 50 day moving average price of $35.53 and a two-hundred day moving average price of $34.15. The company has a debt-to-equity ratio of 0.34, a quick ratio of 2.09 and a current ratio of 2.75. The company has a market cap of $3.20 billion, a P/E ratio of 10.85, a P/E/G ratio of 1.41 and a beta of 1.16.

Federated Hermes (NYSE:FHI) last issued its earnings results on Thursday, July 25th. The company reported $0.96 EPS for the quarter, topping the consensus estimate of $0.89 by $0.07. Federated Hermes had a return on equity of 28.60% and a net margin of 15.90%. The business had revenue of $402.60 million during the quarter, compared to the consensus estimate of $400.35 million. During the same quarter last year, the company earned $0.81 EPS. The firm’s revenue was down 7.1% compared to the same quarter last year. On average, analysts predict that Federated Hermes, Inc. will post 3.63 EPS for the current fiscal year.

Federated Hermes Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 15th. Shareholders of record on Thursday, August 8th were issued a $0.31 dividend. The ex-dividend date was Thursday, August 8th. This represents a $1.24 annualized dividend and a dividend yield of 3.26%. This is a boost from Federated Hermes’s previous quarterly dividend of $0.28. Federated Hermes’s dividend payout ratio (DPR) is presently 35.23%.

Insider Activity at Federated Hermes

In related news, VP John B. Fisher sold 79,830 shares of the firm’s stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $32.71, for a total transaction of $2,611,239.30. Following the transaction, the vice president now directly owns 442,570 shares of the company’s stock, valued at approximately $14,476,464.70. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. 3.70% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Federated Hermes

Large investors have recently bought and sold shares of the stock. Headlands Technologies LLC increased its stake in Federated Hermes by 607.7% in the 1st quarter. Headlands Technologies LLC now owns 828 shares of the company’s stock worth $30,000 after purchasing an additional 711 shares during the period. GAMMA Investing LLC increased its stake in Federated Hermes by 49.0% in the 3rd quarter. GAMMA Investing LLC now owns 1,061 shares of the company’s stock worth $39,000 after purchasing an additional 349 shares during the period. Mather Group LLC. purchased a new position in Federated Hermes in the 2nd quarter worth approximately $47,000. CWM LLC increased its stake in Federated Hermes by 985.7% in the 2nd quarter. CWM LLC now owns 1,444 shares of the company’s stock worth $47,000 after purchasing an additional 1,311 shares during the period. Finally, UMB Bank n.a. increased its stake in Federated Hermes by 26.0% in the 2nd quarter. UMB Bank n.a. now owns 1,436 shares of the company’s stock worth $47,000 after purchasing an additional 296 shares during the period. 75.94% of the stock is owned by hedge funds and other institutional investors.

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.