Providing a diverse range of perspectives from bullish to bearish, 5 analysts have published ratings on Federated Hermes (NYSE:FHI) in the last three months.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 2 | 3 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 0 | 1 | 2 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $39.0, a high estimate of $44.00, and a low estimate of $36.00. Observing a 4.84% increase, the current average has risen from the previous average price target of $37.20.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of Federated Hermes among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Adam Beatty | UBS | Raises | Neutral | $39.00 | $37.00 |
| 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 |
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 a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Federated Hermes compared to the broader market.
- Price Targets: Analysts predict movements in price targets, offering estimates for Federated Hermes's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Federated Hermes's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Federated Hermes analyst ratings.
Discovering Federated Hermes: A Closer Look
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%).
Financial Milestones: Federated Hermes's Journey
Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Federated Hermes displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 4.71%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.
Net Margin: Federated Hermes's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 20.05%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Federated Hermes's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.05% ROE, the company effectively utilizes shareholder equity capital.
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: Federated Hermes's debt-to-equity ratio is below the industry average at 0.41, reflecting a lower dependency on debt financing and a more conservative financial approach.
How Are Analyst Ratings Determined?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.