Zacks Investment Research Upgrades Federated Investors (FII) to “Strong-Buy”
Federated Investors (NYSE:FII) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued to clients and investors on Thursday. The brokerage currently has a $41.00 price target on the asset manager’s stock. Zacks Investment Research‘s price objective suggests a potential upside of 14.21% from the stock’s previous close.
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.”
Other equities analysts have also issued research reports about the stock. ValuEngine lowered shares of Federated Investors from a “buy” rating to a “hold” rating in a research report on Sunday, November 12th. Jefferies Group restated a “hold” rating and set a $30.00 target price (up previously from $29.00) on shares of Federated Investors in a research report on Tuesday, October 10th. Royal Bank of Canada set a $31.00 target price on shares of Federated Investors and gave the stock a “hold” rating in a research report on Friday, December 15th. Citigroup upped their target price on shares of Federated Investors from $22.00 to $24.00 and gave the stock a “sell” rating in a research report on Tuesday, October 31st. Finally, Keefe, Bruyette & Woods restated a “sell” rating and set a $31.00 target price on shares of Federated Investors in a research report on Wednesday, November 1st. Three research analysts have rated the stock with a sell rating, six have issued a hold rating, one has given a buy rating and one has given a strong buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $29.88.
Federated Investors (NYSE:FII) last issued its earnings results on Thursday, October 26th. The asset manager reported $0.56 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.53 by $0.03. Federated Investors had a net margin of 19.32% and a return on equity of 34.54%. The firm had revenue of $278.32 million during the quarter, compared to analyst estimates of $278.51 million. During the same quarter in the prior year, the business earned $0.54 earnings per share. Federated Investors’s revenue for the quarter was down 5.5% on a year-over-year basis. sell-side analysts expect that Federated Investors will post 2.15 earnings per share for the current fiscal year.
In other Federated Investors news, CFO Thomas R. Donahue sold 30,000 shares of the stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $34.79, for a total transaction of $1,043,700.00. Following the completion of the transaction, the chief financial officer now owns 634,044 shares in the company, valued at $22,058,390.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP John B. Fisher sold 6,460 shares of the stock in a transaction on Thursday, November 2nd. The shares were sold at an average price of $31.49, for a total transaction of $203,425.40. Following the transaction, the vice president now owns 508,445 shares of the company’s stock, valued at approximately $16,010,933.05. The disclosure for this sale can be found here. Insiders have sold 47,430 shares of company stock valued at $1,636,457 in the last quarter. 7.10% of the stock is owned by company insiders.
A number of hedge funds have recently added to or reduced their stakes in the business. FMR LLC lifted its position in Federated Investors by 3.5% during the second quarter. FMR LLC now owns 9,096,091 shares of the asset manager’s stock valued at $256,965,000 after purchasing an additional 304,322 shares during the last quarter. Great West Life Assurance Co. Can lifted its holdings in shares of Federated Investors by 31.0% in the 3rd quarter. Great West Life Assurance Co. Can now owns 4,664,052 shares of the asset manager’s stock worth $139,191,000 after acquiring an additional 1,104,213 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in shares of Federated Investors by 9.2% in the 3rd quarter. Dimensional Fund Advisors LP now owns 2,841,818 shares of the asset manager’s stock worth $84,403,000 after acquiring an additional 238,363 shares during the last quarter. State Street Corp lifted its holdings in shares of Federated Investors by 2.1% in the 2nd quarter. State Street Corp now owns 2,723,154 shares of the asset manager’s stock worth $76,930,000 after acquiring an additional 56,121 shares during the last quarter. Finally, Bank of New York Mellon Corp lifted its holdings in shares of Federated Investors by 6.4% in the 3rd quarter. Bank of New York Mellon Corp now owns 2,393,060 shares of the asset manager’s stock worth $71,073,000 after acquiring an additional 144,816 shares during the last quarter. Institutional investors and hedge funds own 85.22% of the company’s stock.
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About Federated Investors
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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