Federated Hermes (NYSE:FHI) Shares Gap Up After Earnings Beat

Federated Hermes, Inc. (NYSE:FHI) shares gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $38.60, but opened at $39.80. Federated Hermes shares last traded at $39.62, with a volume of 99,590 shares.

The company reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.14. The company had revenue of $408.46 million for the quarter, compared to analyst estimates of $410.26 million. Federated Hermes had a net margin of 15.90% and a return on equity of 28.60%. The company’s revenue for the quarter was up 1.4% on a year-over-year basis. During the same quarter last year, the firm earned $0.86 EPS.

Wall Street Analysts Forecast Growth

FHI has been the subject of several recent research reports. StockNews.com upgraded shares of Federated Hermes from a “hold” rating to a “buy” rating in a research report on Friday, October 4th. UBS Group increased their target price on Federated Hermes from $36.00 to $40.00 and gave the company a “neutral” rating in a research note on Tuesday. Royal Bank of Canada boosted their target price on Federated Hermes from $35.00 to $36.00 and gave the stock a “sector perform” rating in a research report on Friday, October 11th. JPMorgan Chase & Co. increased their price target on shares of Federated Hermes from $46.00 to $47.00 and gave the company an “overweight” rating in a research report on Thursday, July 11th. Finally, Evercore ISI boosted their price objective on shares of Federated Hermes from $36.00 to $38.00 and gave the company an “outperform” rating in a report on Friday, October 4th. Three analysts have rated the stock with a hold rating and three have given a buy rating to the company. According to data from MarketBeat, Federated Hermes presently has a consensus rating of “Moderate Buy” and an average target price of $38.80.

Insiders Place Their Bets

In other news, VP John B. Fisher sold 79,830 shares of Federated Hermes stock in a transaction dated Monday, August 5th. The stock was sold at an average price of $32.71, for a total transaction of $2,611,239.30. Following the transaction, the vice president now owns 442,570 shares in the company, valued at $14,476,464.70. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 3.70% of the company’s stock.

Hedge Funds Weigh In On Federated Hermes

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. SG Americas Securities LLC lifted its position in shares of Federated Hermes by 267.9% in the second quarter. SG Americas Securities LLC now owns 26,820 shares of the company’s stock worth $882,000 after purchasing an additional 19,530 shares in the last quarter. Tidal Investments LLC acquired a new position in shares of Federated Hermes during the 1st quarter worth about $1,419,000. Mirae Asset Global Investments Co. Ltd. acquired a new position in shares of Federated Hermes during the 1st quarter worth about $1,542,000. Ontario Teachers Pension Plan Board grew its holdings in shares of Federated Hermes by 103.0% in the 1st quarter. Ontario Teachers Pension Plan Board now owns 58,726 shares of the company’s stock valued at $2,121,000 after acquiring an additional 29,793 shares in the last quarter. Finally, Assenagon Asset Management S.A. increased its position in shares of Federated Hermes by 39.8% in the second quarter. Assenagon Asset Management S.A. now owns 1,142,192 shares of the company’s stock valued at $37,555,000 after acquiring an additional 324,958 shares during the last quarter. 75.94% of the stock is owned by institutional investors and hedge funds.

Federated Hermes Stock Up 3.4 %

The firm has a fifty day moving average of $35.63 and a 200-day moving average of $34.18. The company has a quick ratio of 2.09, a current ratio of 2.75 and a debt-to-equity ratio of 0.34. The firm has a market cap of $3.36 billion, a P/E ratio of 10.96, a price-to-earnings-growth ratio of 1.41 and a beta of 1.16.

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.