Federated Hermes (NYSE:FHI) Shares Gap Up on Earnings Beat

Federated Hermes, Inc. (NYSE:FHI)’s stock price gapped up before the market opened on Friday following a better than expected earnings announcement. 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 trading hands.

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

Federated Hermes Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Friday, November 8th will be paid a dividend of $0.31 per share. This represents a $1.24 dividend on an annualized basis and a yield of 3.21%. The ex-dividend date of this dividend is Friday, November 8th. Federated Hermes’s payout ratio is currently 42.61%.

Analyst Ratings Changes

Several analysts have recently weighed in on the company. UBS Group upped their price objective on Federated Hermes from $36.00 to $40.00 and gave the company a “neutral” rating in a report on Tuesday, October 22nd. JPMorgan Chase & Co. upped their price target on shares of Federated Hermes from $46.00 to $47.00 and gave the company an “overweight” rating in a report on Thursday, July 11th. Evercore ISI lifted their price objective on shares of Federated Hermes from $36.00 to $38.00 and gave the stock an “outperform” rating in a research note on Friday, October 4th. StockNews.com raised shares of Federated Hermes from a “hold” rating to a “buy” rating in a research note on Friday, October 4th. Finally, Royal Bank of Canada lifted their price target on shares of Federated Hermes from $35.00 to $36.00 and gave the stock a “sector perform” rating in a research report on Friday, October 11th. Three equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $38.80.

Insider Buying and Selling at Federated Hermes

In other news, VP John B. Fisher sold 79,830 shares of Federated Hermes 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 transaction, 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 transaction was disclosed in a legal filing with the SEC, which is available at this link. Insiders own 3.70% of the company’s stock.

Institutional Trading of Federated Hermes

A number of hedge funds have recently modified their holdings of FHI. Vanguard Group Inc. raised 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 buying an additional 45,214 shares during the period. AQR Capital Management LLC increased its holdings in shares of Federated Hermes by 88.3% in the 2nd quarter. AQR Capital Management LLC now owns 2,689,488 shares of the company’s stock valued at $87,866,000 after purchasing an additional 1,261,097 shares during the period. Assenagon Asset Management S.A. lifted its position in shares of Federated Hermes by 39.8% in the second quarter. Assenagon Asset Management S.A. now owns 1,142,192 shares of the company’s stock worth $37,555,000 after purchasing an additional 324,958 shares in the last quarter. Millennium Management LLC boosted its holdings in shares of Federated Hermes by 1.1% during the second quarter. Millennium Management LLC now owns 969,844 shares of the company’s stock worth $31,888,000 after purchasing an additional 10,552 shares during the period. 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 purchasing an additional 154,370 shares in the last quarter. Hedge funds and other institutional investors own 75.94% of the company’s stock.

Federated Hermes Trading Up 0.1 %

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 stock has a market cap of $3.19 billion, a price-to-earnings ratio of 13.27, a price-to-earnings-growth ratio of 1.18 and a beta of 1.16. The company’s 50 day simple moving average is $35.84 and its two-hundred day simple moving average is $34.20.

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.