Federated Investors (NYSE:FII) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday.

According to Zacks, “Shares of Federated have outperformed the industry over the last six months. Also, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. It’s top-line continues to get support from the rise in interest rates and increasing assets under management. Also, Federated’s inorganic growth strategies to expand fund offerings encourage us. However, mounting expenses remain a major concern. Also, stretched valuation indicates limited upside potential in the stock.”

Several other equities analysts have also weighed in on FII. Jefferies Group reissued a “hold” rating and issued a $30.00 price objective (up from $29.00) on shares of Federated Investors in a research report on Tuesday, October 10th. ValuEngine raised shares of Federated Investors from a “hold” rating to a “buy” rating in a research report on Thursday, November 30th. Citigroup increased their price objective on shares of Federated Investors from $22.00 to $24.00 and gave the company a “sell” rating in a research report on Tuesday, October 31st. Keefe, Bruyette & Woods reaffirmed a “sell” rating and set a $31.00 price target on shares of Federated Investors in a research report on Wednesday, November 1st. Finally, Deutsche Bank assumed coverage on shares of Federated Investors in a research report on Tuesday, October 17th. They set a “hold” rating and a $31.00 price target on the stock. Three investment analysts have rated the stock with a sell rating, seven have given a hold rating and one has assigned a buy rating to the company. Federated Investors presently has an average rating of “Hold” and a consensus price target of $29.00.

Shares of Federated Investors (FII) traded down $0.50 on Wednesday, hitting $35.58. 831,700 shares of the stock traded hands, compared to its average volume of 680,650. The company has a market capitalization of $3,640.62, a price-to-earnings ratio of 16.94, a PEG ratio of 3.25 and a beta of 1.56. Federated Investors has a 52 week low of $24.93 and a 52 week high of $36.67. The company has a debt-to-equity ratio of 0.27, a current ratio of 3.33 and a quick ratio of 1.89.

Federated Investors (NYSE:FII) last issued its quarterly earnings data on Thursday, October 26th. The asset manager reported $0.56 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.53 by $0.03. The company had revenue of $278.32 million for the quarter, compared to analyst estimates of $278.51 million. Federated Investors had a net margin of 19.32% and a return on equity of 34.54%. The company’s revenue was down 5.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.54 earnings per share. sell-side analysts expect that Federated Investors will post 2.15 EPS for the current year.

In other Federated Investors news, VP John B. Fisher sold 6,460 shares of the stock in a transaction dated Thursday, November 2nd. The shares were sold at an average price of $31.49, for a total transaction of $203,425.40. Following the sale, the vice president now directly owns 508,445 shares in the company, valued at $16,010,933.05. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Thomas R. Donahue sold 30,000 shares of the stock in a transaction dated Thursday, December 14th. The stock was sold at an average price of $34.79, for a total transaction of $1,043,700.00. Following the sale, the chief financial officer now owns 634,044 shares in the company, valued at $22,058,390.76. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 37,776 shares of company stock worth $1,288,527. 7.10% of the stock is owned by insiders.

A number of institutional investors have recently made changes to their positions in the business. Public Employees Retirement System of Ohio grew its stake in Federated Investors by 29.3% during the third quarter. Public Employees Retirement System of Ohio now owns 49,796 shares of the asset manager’s stock worth $1,479,000 after buying an additional 11,274 shares in the last quarter. GSA Capital Partners LLP acquired a new stake in shares of Federated Investors in the 3rd quarter valued at approximately $1,274,000. Sterling Capital Management LLC acquired a new stake in shares of Federated Investors in the 3rd quarter valued at approximately $1,984,000. California Public Employees Retirement System boosted its stake in shares of Federated Investors by 3.5% in the 3rd quarter. California Public Employees Retirement System now owns 234,434 shares of the asset manager’s stock valued at $6,963,000 after purchasing an additional 8,034 shares in the last quarter. Finally, Janney Montgomery Scott LLC boosted its stake in shares of Federated Investors by 16.5% in the 3rd quarter. Janney Montgomery Scott LLC now owns 119,107 shares of the asset manager’s stock valued at $3,538,000 after purchasing an additional 16,839 shares in the last quarter. Hedge funds and other institutional investors own 85.22% of the company’s stock.

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Federated Investors Company Profile

Federated Investors, Inc (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It 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.

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