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

Shares of Federated Hermes, Inc. (NYSE:FHI - Get Free Report) gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. 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 EPS for the quarter, topping the consensus estimate of $0.92 by $0.14. The firm 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 28.60% and a net margin of 15.90%. The company's quarterly revenue was up 1.4% compared to the same quarter last year. During the same period in the prior year, the business posted $0.86 earnings per share.

Federated Hermes Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Friday, November 8th will be paid a dividend of $0.31 per share. This represents a $1.24 annualized dividend and a yield of 3.21%. The ex-dividend date of this dividend is Friday, November 8th. Federated Hermes's dividend payout ratio (DPR) is presently 35.23%.

Analyst Upgrades and Downgrades

Several analysts have recently commented on FHI shares. StockNews.com upgraded shares of Federated Hermes from a "hold" rating to a "buy" rating in a report on Friday, October 4th. TD Cowen decreased their price objective on shares of Federated Hermes from $34.00 to $33.00 and set a "hold" rating for the company in a research note on Monday, July 29th. UBS Group boosted their target price on Federated Hermes from $36.00 to $40.00 and gave the stock a "neutral" rating in a research note on Tuesday. Evercore ISI increased their price target on Federated Hermes from $36.00 to $38.00 and gave the company an "outperform" rating in a research report on Friday, October 4th. Finally, Royal Bank of Canada lifted their price target on Federated Hermes from $35.00 to $36.00 and gave the stock a "sector perform" rating in a report on Friday, October 11th. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the stock. According to data from MarketBeat.com, Federated Hermes presently has a consensus rating of "Moderate Buy" and an average target price of $38.80.

Insider Buying and Selling at Federated Hermes

In related 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 value of $2,611,239.30. Following the completion of the sale, the vice president now owns 442,570 shares of the company's stock, valued at approximately $14,476,464.70. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Corporate insiders own 3.70% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. State of Alaska Department of Revenue grew its position in shares of Federated Hermes by 3.1% in the third quarter. State of Alaska Department of Revenue now owns 9,146 shares of the company's stock valued at $336,000 after purchasing an additional 275 shares in the last quarter. UMB Bank n.a. lifted its holdings in shares of Federated Hermes by 26.0% in the second quarter. UMB Bank n.a. now owns 1,436 shares of the company's stock worth $47,000 after buying an additional 296 shares in the last quarter. Hexagon Capital Partners LLC boosted its position in shares of Federated Hermes by 30.5% in the first quarter. Hexagon Capital Partners LLC now owns 1,358 shares of the company's stock valued at $49,000 after acquiring an additional 317 shares during the period. GAMMA Investing LLC increased its holdings in Federated Hermes by 49.0% during the 3rd 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 period. Finally, Acadian Asset Management LLC boosted its holdings in Federated Hermes by 23.3% in the 2nd quarter. Acadian Asset Management LLC now owns 3,402 shares of the company's stock valued at $111,000 after purchasing an additional 643 shares during the period. 75.94% of the stock is currently owned by hedge funds and other institutional investors.

Federated Hermes Stock Performance

The company's fifty day simple moving average is $35.74 and its 200 day simple moving average is $34.21. The stock has a market capitalization of $3.25 billion, a P/E ratio of 11.20, a P/E/G ratio of 1.41 and a beta of 1.16. The company has a current ratio of 2.75, a quick ratio of 2.09 and a debt-to-equity ratio of 0.34.

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.