Federated Hermes Inc. (NYSE:FHI) finished Friday with an addition of $0.25 to close at $33.22, an upside of 0.76 percent. An average of 696,260 shares of common stock have been traded in the last five days. There was a gain of $0.22 in the past week, and it reached a new high 25 times over the past 12 months. The last 20 days have seen an average of 802,305 shares traded, while the 50-day average volume stands at 1,194,084.
FHI stock has decreased by -6.45% in the last month. The company shares reached their 1-month lowest point of $32.70 on 08/03/23. With the stock rallying to its 52-week high on 04/18/23, shares of the company touched a low of $30.30 and a high of $45.55 in 52 weeks. It has reached a new high 17 times so far this year and lost -8.51% or -$3.09 in price. In spite of this, the price is down -27.07% from the 52-week high.
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Insider Transactions
FHI stock investors should be aware that Federated Hermes Inc. (FHI) stock had its last reported insider trading activity 10 days ago on Aug 02. In this transaction, the insider spent $2,454. CEO, Hermes Fund Managers Ltd., Nusseibeh Saker Anwar, disposed of 43,135 shares at a price of $36.10 on Jul 03. The insider now owns more than $1,557,277 worth of shares. Prior to that, Vice President Uhlman Paul A went on to Sale 1,004 shares at $38.54 each on Jun 16. An amount of $38,697 was transacted.
Valuation Metrics
Federated Hermes Inc. (FHI) has a trailing price-to-earnings (P/E) ratio of 12.40. The stock’s beta is 1.05. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 2.08, the price-to-book (PB) ratio at 2.55, and the price-to-cash flow ratio at 13.44.
The company has a payout ratio of 40.30%. The company’s most recent quarterly dividend payment was $0.28 a share, without any change from last year. Its latest increase dividend $0.01 reported on Thursday April 27 2023.
Financial Health
The quick ratio of Federated Hermes Inc. for the three months ended June 29 was 3.00, and the current ratio was 3.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.31 and a total debt to equity ratio of 0.31 for the quarter ending June 29. Its gross profit as reported stood at $336.8 million compared to revenue of $1.45 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Federated Hermes Inc.’s return on assets was 11.50%.
Earnings Surprise
For the three-month period that ended June 29, Federated Hermes Inc. had $347.71 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $72.18 million in the quarter, while revenues of $69.6 million were grew 20.12%. The analyst consensus anticipated Federated Hermes Inc.’s latest quarter earnings to come in at $0.82 per share, but it turned out to be $0.81, a -1.20% surprise. For the quarter, EBITDA amounted to $105.09 million. At the end of the quarter ending June 29, Federated Hermes Inc.’s stock balance sheet showed total debt was $440.04 million. Shareholders own equity worth $88.3 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Federated Hermes Inc. (FHI) price momentum. RSI 9-day as of the close on 11 August was 34.93%, suggesting the stock is Neutral, with historical volatility in this time frame at 8.74%.
As of today, FHI’s price is $33.12 +0.67% or $0.22 from its 5-day moving average. FHI is currently trading -5.95% lower than its 20-day SMA and -17.96% lower than its 100-day SMA. However, the stock’s current price level is -3.51% below the SMA50 and +4.33% above the SMA200.
The stochastic %K and %D were 9.18% and 8.99%, respectively, and the average true range (ATR) was 0.74. With the 14-day stochastic at 11.28% and the average true range at 0.78, the RSI (14) stands at 36.90%. The stock has reached -0.10 on the 9-day MACD Oscillator while the 14-day reading was at -0.85.
Analyst Ratings
JP Morgan upgraded Federated Hermes Inc. (NYSE: FHI) to a an Overweight rating in its most recent analyst report. Previously, the stock was rated as an Underweight. The consensus rating for Federated Hermes Inc. (FHI) among analysts is Overweight. According to current brokerage recommendations, 0 brokerage firms advise that investors sell FHI, while 3 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 5 others rate it as a “buy”.
What is FHI’s price target for the next 12 months?
Analysts predict a range of price targets between $36.00 and $47.00, with a median target of $39.00. Taking a look at these predictions, the average price target given by analysts for Federated Hermes Inc. (FHI) stock is $40.29.
