Federated Investors Inc. (NYSE:FII) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Thursday.

According to Zacks, “We remain concerned about Federated’s asset under management owing to volatility in equity markets. Further, stringent regulations in the investment management business will hurt its profitability. Also, compliance-related fees are expected to continue rising in the near term. Notably, management expects compensation expenses to increase to $74 million in third-quarter 2016. Also, fee waivers for third-quarter 2016 are estimated to result in a negative pre-tax impact of $4 million.This will continue to exert pressure on the company’s earnings. However, Federated’s growth potential looks encouraging, given its diversified investment products and strategic expansion moves. Moreover, steady capital deployment activities should enhance shareholders’ value.”

FII has been the topic of several other research reports. Jefferies Group reissued a “buy” rating and set a $35.00 price objective on shares of Federated Investors in a report on Friday, July 29th. Credit Suisse Group AG set a $27.00 price objective on Federated Investors and gave the company a “sell” rating in a report on Sunday, July 31st. Finally, Keefe, Bruyette & Woods lifted their target price on Federated Investors from $33.00 to $35.00 and gave the stock a “market perform” rating in a report on Monday, August 1st. Four investment analysts have rated the stock with a sell rating, one has assigned a hold rating and two have given a buy rating to the stock. Federated Investors currently has an average rating of “Hold” and an average price target of $30.75.

Analyst Recommendations for Federated Investors (NYSE:FII)

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Shares of Federated Investors (NYSE:FII) traded down 1.60% during midday trading on Thursday, hitting $27.67. The company’s stock had a trading volume of 373,049 shares. The company has a 50-day moving average price of $30.96 and a 200 day moving average price of $30.76. The company has a market cap of $2.76 billion, a P/E ratio of 15.20 and a beta of 1.51. Federated Investors has a 1-year low of $22.76 and a 1-year high of $33.13.

Federated Investors (NYSE:FII) last released its quarterly earnings data on Thursday, July 28th. The company reported $0.51 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.48 by $0.03. Federated Investors had a return on equity of 28.98% and a net margin of 18.30%. The company had revenue of $286.74 million for the quarter, compared to the consensus estimate of $284.39 million. During the same quarter last year, the business posted $0.40 EPS. Federated Investors’s revenue for the quarter was up 25.7% on a year-over-year basis. On average, equities research analysts predict that Federated Investors will post $1.98 EPS for the current year.

Several hedge funds and other institutional investors have recently bought and sold shares of FII. State Street Corp raised its position in Federated Investors by 0.4% in the first quarter. State Street Corp now owns 2,675,072 shares of the company’s stock valued at $77,183,000 after buying an additional 10,580 shares during the period. Americafirst Capital Management LLC acquired a new position in Federated Investors during the second quarter valued at $101,000. Springbok Capital Management LLC acquired a new position in Federated Investors during the first quarter valued at $640,000. Teachers Advisors Inc. raised its position in Federated Investors by 85.2% in the first quarter. Teachers Advisors Inc. now owns 135,362 shares of the company’s stock valued at $3,905,000 after buying an additional 62,258 shares during the period. Finally, JPMorgan Chase & Co. raised its position in Federated Investors by 78.0% in the first quarter. JPMorgan Chase & Co. now owns 61,179 shares of the company’s stock valued at $1,765,000 after buying an additional 26,803 shares during the period. 75.46% of the stock is owned by hedge funds and other institutional investors.

About Federated Investors

Federated Investors, Inc (Federated) is a provider of investment management products and related financial services. The Company is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products, in both domestic and international markets.

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