Federated Hermes (NYSE:FHI) underwent analysis by 4 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 2 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 2 | 1 | 0 | 0 |
Analysts have set 12-month price targets for Federated Hermes, revealing an average target of $39.25, a high estimate of $47.00, and a low estimate of $34.00. Observing a downward trend, the current average is 0.63% lower than the prior average price target of $39.50.
Exploring Analyst Ratings: An In-Depth Overview
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 |
|---|---|---|---|---|---|
| Bill Kirk | TD Cowen | Lowers | Hold | $34.00 | $36.00 |
| John Dunn | Evercore ISI Group | Lowers | Outperform | $37.00 | $39.00 |
| Kenneth Worthington | JP Morgan | Raises | Overweight | $47.00 | $46.00 |
| Adam Beatty | UBS | Raises | Neutral | $39.00 | $37.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Federated Hermes. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Federated Hermes compared to the broader market.
- Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Federated Hermes's stock. This examination reveals shifts in analysts' expectations over time.
Capture valuable insights into Federated Hermes's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Federated Hermes analyst ratings.
Discovering Federated Hermes: A Closer Look
Federated provides asset management services for institutional and individual investors. The firm had $778.7 billion in managed assets at the end of March 2024, composed of equity (10%), multi-asset (less than 1%), fixed-income (12%), alternative (3%), and money market (74%) funds. That said, the firm's cash-management operations are expected to generate around 47% 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 (64% of AUM), institutional investors (28%), and international clients (8%).
Federated Hermes's Economic Impact: An Analysis
Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.
Revenue Growth: Over the 3 months period, Federated Hermes showcased positive performance, achieving a revenue growth rate of 3.71% as of 31 March, 2024. This reflects a substantial increase in the company's 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: Federated Hermes's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 18.07%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Federated Hermes's ROE excels beyond industry benchmarks, reaching 6.3%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Federated Hermes's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.42%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.4.
The Basics of Analyst Ratings
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.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.