Federated Hermes (NYSE:FHI) Trading Down 3.4% – Should You Sell?

Federated Hermes, Inc. (NYSE:FHI)’s share price fell 3.4% on Tuesday . The stock traded as low as $39.13 and last traded at $39.21. 78,039 shares traded hands during trading, a decline of 81% from the average session volume of 417,957 shares. The stock had previously closed at $40.59.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on FHI shares. Royal Bank of Canada upped their price objective on Federated Hermes from $36.00 to $39.00 and gave the stock a “sector perform” rating in a research note on Monday, October 28th. Deutsche Bank Aktiengesellschaft restated a “hold” rating and issued a $43.00 price target (down previously from $45.00) on shares of Federated Hermes in a research report on Wednesday. UBS Group lifted their price objective on Federated Hermes from $36.00 to $40.00 and gave the company a “neutral” rating in a research report on Tuesday, October 22nd. TD Cowen upgraded Federated Hermes from a “hold” rating to a “buy” rating and boosted their price objective for the company from $35.00 to $46.00 in a research note on Monday, October 28th. Finally, Evercore ISI raised their target price on shares of Federated Hermes from $41.00 to $43.00 and gave the stock an “outperform” rating in a research note on Thursday, November 7th. Four analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat.com, Federated Hermes presently has a consensus rating of “Hold” and an average price target of $42.17.

Federated Hermes Price Performance

The firm has a 50-day moving average of $41.65 and a 200-day moving average of $37.30. The stock has a market cap of $3.22 billion, a PE ratio of 12.64, a PEG ratio of 1.19 and a beta of 1.16. The company has a debt-to-equity ratio of 0.32, a current ratio of 2.75 and a quick ratio of 2.03.

Federated Hermes (NYSE:FHI) last posted its quarterly earnings results on Thursday, October 24th. The company reported $1.06 earnings per share for the quarter, topping the consensus estimate of $0.92 by $0.14. The business had revenue of $408.46 million during the quarter, compared to the consensus estimate of $410.26 million. Federated Hermes had a return on equity of 29.85% and a net margin of 16.62%. The firm’s revenue for the quarter was up 1.4% compared to the same quarter last year. During the same period in the prior year, the company posted $0.86 EPS. Research analysts predict that Federated Hermes, Inc. will post 3.88 EPS for the current year.

Federated Hermes Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, November 15th. Shareholders of record on Friday, November 8th were issued a $0.31 dividend. The ex-dividend date of this dividend was Friday, November 8th. This represents a $1.24 dividend on an annualized basis and a yield of 3.15%. Federated Hermes’s dividend payout ratio is currently 39.87%.

Insiders Place Their Bets

In other news, VP Dolores D. Dudiak sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, October 30th. The stock was sold at an average price of $39.89, for a total transaction of $199,450.00. Following the sale, the vice president now directly owns 77,288 shares of the company’s stock, valued at $3,083,018.32. This represents a 6.08 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Saker Anwar Nusseibeh sold 12,152 shares of the firm’s stock in a transaction on Monday, November 4th. The shares were sold at an average price of $39.86, for a total transaction of $484,378.72. Following the completion of the transaction, the chief executive officer now directly owns 179,096 shares of the company’s stock, valued at approximately $7,138,766.56. This trade represents a 6.35 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 29,280 shares of company stock worth $1,185,871 in the last 90 days. 3.70% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC increased its stake in Federated Hermes by 49.0% during the third quarter. GAMMA Investing LLC now owns 1,061 shares of the company’s stock worth $39,000 after acquiring an additional 349 shares during the last quarter. Neo Ivy Capital Management purchased a new position in shares of Federated Hermes in the 3rd quarter worth approximately $60,000. Headlands Technologies LLC increased its position in shares of Federated Hermes by 134.9% during the 2nd quarter. Headlands Technologies LLC now owns 1,945 shares of the company’s stock valued at $64,000 after purchasing an additional 1,117 shares during the last quarter. CWM LLC raised its holdings in Federated Hermes by 74.7% during the 3rd quarter. CWM LLC now owns 2,523 shares of the company’s stock valued at $93,000 after buying an additional 1,079 shares during the period. Finally, Acadian Asset Management LLC lifted its position in Federated Hermes by 23.3% in the second quarter. Acadian Asset Management LLC now owns 3,402 shares of the company’s stock worth $111,000 after buying an additional 643 shares during the last quarter. Institutional investors own 75.94% of the company’s stock.

About Federated Hermes

Federated Hermes, Inc is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.