A Glimpse Into The Expert Outlook On Federated Hermes Through 7 Analysts
In the preceding three months, 7 analysts have released ratings for Federated Hermes (NYSE:FHI), presenting a wide array of perspectives from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 2 | 5 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 3 | 0 | 0 |
| 3M Ago | 0 | 0 | 2 | 0 | 0 |
Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $37.14, along with a high estimate of $44.00 and a low estimate of $32.00. This current average has increased by 0.92% from the previous average price target of $36.80.
Diving into Analyst Ratings: An In-Depth Exploration
The analysis of recent analyst actions sheds light on the perception of Federated Hermes by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Dunn | Evercore ISI Group | Raises | Outperform | $39.00 | $36.00 |
| Kenneth Lee | RBC Capital | Raises | Sector Perform | $37.00 | $36.00 |
| Kenneth Lee | RBC Capital | Raises | Sector Perform | $36.00 | $34.00 |
| Kenneth Worthington | JP Morgan | Raises | Overweight | $44.00 | $43.00 |
| Adam Beatty | UBS | Raises | Neutral | $37.00 | $35.00 |
| Adam Beatty | UBS | Announces | Neutral | $35.00 | - |
| Bill Kirk | TD Cowen | Announces | Market Perform | $32.00 | - |
Key Insights:
- Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Federated Hermes. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Federated Hermes compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Federated Hermes's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Federated Hermes's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Federated Hermes analyst ratings.
About Federated Hermes
ederated provides asset management services for institutional and individual investors. The company had $757.6 billion in managed assets at the end of December 2023, composed of equity (10%), multi-asset (less than 1%), fixed-income (13%), alternative (3%), and money market (74%) funds. That said, the firm's cash-management operations are expected to generate around 46% of Federated's revenue this year, compared with 29%, 13%, and 11%, respectively, for the firm's equity, fixed-income, and alternatives/multi-asset operations. From a channel perspective, the company's products are distributed via trust banks, wealth managers and retail broker/dealers (63% of AUM), institutional investors (28%), and international clients (9%).
Unraveling the Financial Story of Federated Hermes
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining Federated Hermes's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 4.71% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 20.05%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Federated Hermes's ROE stands out, surpassing industry averages. With an impressive ROE of 7.05%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Federated Hermes's ROA stands out, surpassing industry averages. With an impressive ROA of 3.75%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.41, Federated Hermes adopts a prudent financial strategy, indicating a balanced approach to debt management.
Analyst Ratings: What Are They?
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.