Federated Hermes (NYSE:FHI) Shares Gap Up Following Better-Than-Expected Earnings

Federated Hermes, Inc. (NYSE:FHI)’s share price gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $38.60, but opened at $39.80. Federated Hermes shares last traded at $39.62, with a volume of 99,590 shares changing hands.

The company reported $1.06 EPS for the quarter, beating the consensus estimate of $0.92 by $0.14. The business had revenue of $408.46 million for the quarter, compared to the consensus estimate of $410.26 million. Federated Hermes had a net margin of 15.90% and a return on equity of 28.60%. The company’s revenue was up 1.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.86 earnings per share.

Federated Hermes Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Friday, November 8th will be issued a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a yield of 3.21%. The ex-dividend date is Friday, November 8th. Federated Hermes’s dividend payout ratio (DPR) is presently 35.23%.

Analyst Ratings Changes

FHI has been the topic of a number of recent analyst reports. Royal Bank of Canada increased their price target on shares of Federated Hermes from $35.00 to $36.00 and gave the stock a “sector perform” rating in a report on Friday, October 11th. JPMorgan Chase & Co. increased their price target on shares of Federated Hermes from $46.00 to $47.00 and gave the stock an “overweight” rating in a report on Thursday, July 11th. UBS Group increased their price target on shares of Federated Hermes from $36.00 to $40.00 and gave the stock a “neutral” rating in a report on Tuesday. Evercore ISI increased their price target on shares of Federated Hermes from $36.00 to $38.00 and gave the stock an “outperform” rating in a report on Friday, October 4th. Finally, StockNews.com raised shares of Federated Hermes from a “hold” rating to a “buy” rating in a report on Friday, October 4th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $38.80.

Insider Activity at Federated Hermes

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

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in Federated Hermes by 0.5% during the first quarter. Vanguard Group Inc. now owns 8,577,679 shares of the company’s stock valued at $309,826,000 after acquiring an additional 45,214 shares during the last quarter. AQR Capital Management LLC grew its position in Federated Hermes by 88.3% during the second quarter. AQR Capital Management LLC now owns 2,689,488 shares of the company’s stock valued at $87,866,000 after acquiring an additional 1,261,097 shares during the last quarter. Assenagon Asset Management S.A. grew its position in Federated Hermes by 39.8% during the second quarter. Assenagon Asset Management S.A. now owns 1,142,192 shares of the company’s stock valued at $37,555,000 after acquiring an additional 324,958 shares during the last quarter. Millennium Management LLC grew its position in Federated Hermes by 1.1% during the second quarter. Millennium Management LLC now owns 969,844 shares of the company’s stock valued at $31,888,000 after acquiring an additional 10,552 shares during the last quarter. Finally, Interval Partners LP grew its position in Federated Hermes by 60.4% during the first quarter. Interval Partners LP now owns 409,854 shares of the company’s stock valued at $14,804,000 after acquiring an additional 154,370 shares during the last quarter. 75.94% of the stock is currently owned by institutional investors.

Federated Hermes Price Performance

The company has a quick ratio of 2.09, a current ratio of 2.75 and a debt-to-equity ratio of 0.34. The business’s 50-day simple moving average is $35.74 and its 200 day simple moving average is $34.21. The firm has a market capitalization of $3.25 billion, a P/E ratio of 11.20, a PEG ratio of 1.41 and a beta of 1.16.

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.