Federated Investors Downgraded by Zacks to “Underperform” (FII)
Federated Investors (NYSE:FII) was downgraded by Zacks from a “neutral” rating to an “underperform” rating in a research note issued to investors on Tuesday. They currently have a $26.00 price objective on the stock. Zacks‘s price target suggests a potential downside of 8.26% from the company’s current price.
Zacks’ analyst wrote, “We have downgraded our long-term recommendation on Federated to Underperform following dismal first-quarter 2014 results. Impacted by lower revenues, the company’s first-quarter earnings missed the Zacks Consensus Estimate as well as the prior-year quarter figure. Though the company has the potential for significant growth in the long run, given its fairly liquid balance sheet and a diversified asset as well as product mix, lower revenues remain a concern. Moreover, persistent regulatory pressures, slow global economic growth and a low-interest rate environment are expected to keep Federated’s earnings under pressure in the coming quarters. Reduction in assets under management also remains a concern. “
Federated Investors (NYSE:FII) traded up 0.56% on Tuesday, hitting $28.50. 125,795 shares of the company’s stock traded hands. Federated Investors has a 52-week low of $25.50 and a 52-week high of $31.48. The stock’s 50-day moving average is $28.35 and its 200-day moving average is $28.08. The company has a market cap of $2.871 billion and a P/E ratio of 19.21.
Federated Investors (NYSE:FII) last issued its quarterly earnings data on Thursday, April 24th. The company reported $0.34 earnings per share for the quarter, missing the analysts’ consensus estimate of $0.37 by $0.03. The company had revenue of $211.50 million for the quarter, compared to the consensus estimate of $218.15 million. During the same quarter last year, the company posted $0.41 earnings per share. Federated Investors’s revenue was down 7.2% compared to the same quarter last year. On average, analysts predict that Federated Investors will post $1.51 earnings per share for the current fiscal year.
Several other analysts have also recently commented on the stock. Analysts at Keefe, Bruyette & Woods cut their price target on shares of Federated Investors from $32.00 to $28.00 in a research note on Monday, April 28th. Separately, analysts at JPMorgan Chase & Co. cut their price target on shares of Federated Investors from $26.50 to $25.00 in a research note on Monday, April 28th. They now have an “underweight” rating on the stock. Finally, analysts at JPMorgan Chase & Co. raised their price target on shares of Federated Investors from $26.00 to $26.50 in a research note on Tuesday, April 15th. They now have an “underweight” rating on the stock. Five equities research analysts have rated the stock with a sell rating, four have given a hold rating and one has given a buy rating to the company. The stock presently has a consensus rating of “Hold” and an average target price of $27.31.
Federated Investors, Inc(NYSE:FII)is a provider of investment management products and related financial services.
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