Federated Hermes (NYSE:FHI) Rating Increased to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Federated Hermes (NYSE:FHI) from a hold rating to a buy rating in a research report released on Saturday.

A number of other analysts have also weighed in on FHI. Royal Bank Of Canada raised their target price on shares of Federated Hermes from $54.00 to $57.00 and gave the company a “sector perform” rating in a research report on Thursday, July 2nd. Evercore reiterated an “outperform” rating and set a $59.00 price target on shares of Federated Hermes in a report on Monday, June 8th. TD Cowen dropped their price target on Federated Hermes from $58.00 to $54.00 and set a “hold” rating for the company in a research note on Monday, May 4th. Weiss Ratings reissued a “buy (b)” rating on shares of Federated Hermes in a report on Friday, July 17th. Finally, JPMorgan Chase & Co. reduced their price objective on Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a research report on Monday, May 4th. Two investment analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $55.75.

Federated Hermes Stock Performance

Federated Hermes stock opened at $60.22 on Friday. Federated Hermes has a 12-month low of $46.66 and a 12-month high of $61.01. The company has a quick ratio of 2.73, a current ratio of 3.28 and a debt-to-equity ratio of 0.29. The business’s 50-day moving average price is $57.76 and its two-hundred day moving average price is $56.25. The stock has a market cap of $4.57 billion, a PE ratio of 11.19, a P/E/G ratio of 1.62 and a beta of 0.65.

Federated Hermes (NYSE:FHI) last issued its earnings results on Thursday, July 30th. The company reported $1.38 EPS for the quarter, topping the consensus estimate of $1.19 by $0.19. Federated Hermes had a return on equity of 34.43% and a net margin of 21.30%.The firm had revenue of $502.78 million during the quarter, compared to the consensus estimate of $488.34 million. During the same quarter in the previous year, the firm earned $1.16 earnings per share. The business’s quarterly revenue was up 18.3% on a year-over-year basis. As a group, analysts expect that Federated Hermes will post 5.24 earnings per share for the current fiscal year.

Federated Hermes Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, August 14th. Shareholders of record on Friday, August 7th will be issued a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 2.5%. The ex-dividend date of this dividend is Friday, August 7th. Federated Hermes’s payout ratio is presently 29.46%.

Insider Activity at Federated Hermes

In other news, CEO Saker Anwar Nusseibeh sold 8,950 shares of Federated Hermes stock in a transaction on Monday, June 8th. The shares were sold at an average price of $57.34, for a total transaction of $513,193.00. Following the transaction, the chief executive officer owned 151,276 shares in the company, valued at approximately $8,674,165.84. The trade was a 5.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Bryan M. Burke sold 4,000 shares of the business’s stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total transaction of $216,800.00. Following the completion of the sale, the vice president directly owned 74,921 shares in the company, valued at approximately $4,060,718.20. This represents a 5.07% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 4.20% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of FHI. Wedge Capital Management L L P NC grew its position in shares of Federated Hermes by 8.6% in the 2nd quarter. Wedge Capital Management L L P NC now owns 24,207 shares of the company’s stock valued at $1,337,000 after buying an additional 1,910 shares during the last quarter. Bill Few Associates Inc. increased its stake in shares of Federated Hermes by 14.7% in the second quarter. Bill Few Associates Inc. now owns 7,783 shares of the company’s stock valued at $430,000 after buying an additional 1,000 shares during the period. Pacer Advisors Inc. raised its position in shares of Federated Hermes by 23.1% during the first quarter. Pacer Advisors Inc. now owns 10,882 shares of the company’s stock worth $617,000 after acquiring an additional 2,045 shares during the last quarter. Parallel Advisors LLC raised its position in shares of Federated Hermes by 15.6% during the first quarter. Parallel Advisors LLC now owns 15,090 shares of the company’s stock worth $856,000 after acquiring an additional 2,033 shares during the last quarter. Finally, Cim Investment Management Inc. lifted its stake in shares of Federated Hermes by 96.5% in the first quarter. Cim Investment Management Inc. now owns 13,251 shares of the company’s stock worth $751,000 after acquiring an additional 6,508 shares during the period. 75.94% of the stock is owned by institutional investors.

Key Headlines Impacting Federated Hermes

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

• Positive Sentiment: Quarterly earnings beat estimates: Federated Hermes reported diluted EPS of $1.38, up from $1.16 a year earlier and above the $1.19 consensus estimate. Revenue reached $502.8 million, exceeding expectations of $488.3 million and increasing 18.3% year over year. Federated Hermes Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Record managed assets support future fee revenue: Total assets under management rose to a record $911.6 billion as of June 30, up 8% from a year earlier and $4.5 billion from the previous quarter. Equity assets also reached a record $109.6 billion. The growth suggests favorable scale and potential support for future operating results. Federated Hermes Reports Record Assets Under Management
• Positive Sentiment: Dividend maintained: The board declared a quarterly dividend of $0.38 per share, equivalent to $1.52 annually and an indicated yield of approximately 2.5%. Shareholders of record on August 7 will receive payment on August 14. Federated Hermes Dividend Announcement
• Neutral Sentiment: Investor focus turns to expenses and outlook: The earnings beat was achieved despite higher operating expenses. Investors may look for additional details from the earnings presentation and call regarding expense trends, asset flows, fee rates and the sustainability of the record asset base. Federated Hermes 2026 Q2 Results Presentation

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.