Federated Hermes (NYSE:FHI) Lowered to Buy Rating by Wall Street Zen

Federated Hermes (NYSE:FHI) was downgraded by stock analysts at Wall Street Zen from a “strong-buy” rating to a “buy” rating in a research report issued on Saturday.

Several other brokerages have also weighed in on FHI. TD Cowen reissued a “hold” rating on shares of Federated Hermes in a research report on Wednesday, January 14th. Zacks Research cut shares of Federated Hermes from a “strong-buy” rating to a “hold” rating in a report on Tuesday, December 9th. Weiss Ratings restated a “buy (b)” rating on shares of Federated Hermes in a research report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. upped their target price on Federated Hermes from $55.00 to $56.00 and gave the company a “neutral” rating in a research report on Monday, November 3rd. Two investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $51.20.

Federated Hermes Stock Performance

FHI opened at $53.31 on Friday. The company has a quick ratio of 2.58, a current ratio of 3.13 and a debt-to-equity ratio of 0.29. Federated Hermes has a 12-month low of $35.05 and a 12-month high of $55.13. The business has a 50 day moving average of $52.38 and a 200-day moving average of $51.45. The stock has a market cap of $4.13 billion, a price-to-earnings ratio of 10.37, a PEG ratio of 0.55 and a beta of 0.75.

Federated Hermes (NYSE:FHI) last posted its quarterly earnings results on Thursday, January 29th. The company reported $1.39 earnings per share for the quarter, beating analysts’ consensus estimates of $1.20 by $0.19. Federated Hermes had a return on equity of 34.79% and a net margin of 22.40%.The business had revenue of $482.83 million for the quarter, compared to analysts’ expectations of $468.45 million. During the same quarter in the prior year, the business earned $1.04 EPS. The firm’s revenue for the quarter was up 13.7% on a year-over-year basis. On average, equities research analysts expect that Federated Hermes will post 4.04 earnings per share for the current year.

Insider Activity

In other news, VP Dolores D. Dudiak sold 999 shares of Federated Hermes stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $47.87, for a total value of $47,822.13. Following the completion of the sale, the vice president directly owned 88,223 shares in the company, valued at approximately $4,223,235.01. The trade was a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Richard A. Novak sold 1,249 shares of the stock in a transaction that occurred on Wednesday, November 19th. The stock was sold at an average price of $47.85, for a total value of $59,764.65. Following the sale, the insider directly owned 57,500 shares in the company, valued at $2,751,375. This represents a 2.13% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 21,709 shares of company stock worth $1,049,146. Corporate insiders own 3.80% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of FHI. Schneider Downs Wealth Management Advisors LP raised its stake in Federated Hermes by 3,229.0% in the third quarter. Schneider Downs Wealth Management Advisors LP now owns 2,657,263 shares of the company’s stock valued at $137,992,000 after purchasing an additional 2,577,442 shares in the last quarter. LSV Asset Management increased its holdings in Federated Hermes by 77.6% in the 2nd quarter. LSV Asset Management now owns 1,966,142 shares of the company’s stock valued at $87,139,000 after buying an additional 859,053 shares during the period. Victory Capital Management Inc. raised its position in shares of Federated Hermes by 2,410.2% in the 3rd quarter. Victory Capital Management Inc. now owns 779,492 shares of the company’s stock valued at $40,479,000 after buying an additional 748,439 shares in the last quarter. Invesco Ltd. lifted its holdings in shares of Federated Hermes by 29.6% during the 3rd quarter. Invesco Ltd. now owns 2,939,908 shares of the company’s stock worth $152,669,000 after acquiring an additional 670,643 shares during the period. Finally, Jupiter Asset Management Ltd. boosted its position in shares of Federated Hermes by 2,427.2% during the 3rd quarter. Jupiter Asset Management Ltd. now owns 527,368 shares of the company’s stock worth $27,386,000 after acquiring an additional 506,500 shares in the last quarter. Institutional investors own 75.94% of the company’s stock.

More Federated Hermes News

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Q4 earnings beat and full-year strength — FHI posted Q4 EPS of $1.39 versus consensus ~$1.20 and revenue of $482.8M (up 13.7% YoY); full-year 2025 EPS was $5.13, reflecting sizable net-income growth. Read More.
• Positive Sentiment: Record AUM — Total assets under management reached a record $902.6B, driven by a record $682.6B in money-market AUM, a positive signal for fee-related revenue and cash-management flows. Read More.
• Positive Sentiment: Dividend declared — The board approved a $0.34 quarterly dividend (ex-dividend Feb 6; record Feb 6; pay Feb 13), supporting income-oriented shareholder demand and reflecting strong cash generation. Read More.
• Positive Sentiment: Analyst/market interest — Coverage highlights FHI as an attractive dividend and momentum stock, which can help demand from income and momentum-focused investors. Read More. Read More.
• Neutral Sentiment: Full transcript and investor materials available — Management commentary and the earnings transcript provide more detail on inflows, margin drivers and outlook; useful for assessing sustainability of flows and fee revenue. Read More.
• Negative Sentiment: Rising costs weighed on results — Some coverage notes higher operating costs that trimmed margins despite revenue gains, a potential headwind if expense growth continues. Read More.

About Federated Hermes

Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.

In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.