Update from Federated Hermes Inc. (FHI): A steady trajectory

The closing price of Federated Hermes Inc. (NYSE: FHI) was $40.08 for the day, up 2.82% from the previous closing price of $38.98. In other words, the price has increased by $+1.10 from its previous closing price. On the day, 1563735 shares were traded. FHI stock price reached its highest trading level at $40.50 during the session, while it also had its lowest trading level at $38.64.

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Our analysis of FHI’s different ratios will help us gain a deeper understanding of the company. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 6.87 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 16.17. For the most recent quarter (mrq), Quick Ratio is recorded 2.50 and its Current Ratio is at 2.50. In the meantime, Its Debt-to-Equity ratio is 0.33 whereas as Long-Term Debt/Eq ratio is at 0.33.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for the company, Keefe Bruyette on June 29, 2022, Upgraded its rating to Outperform and sets its target price to $40 from $32 previously.

On April 12, 2022, Citigroup Downgraded its rating to Sell which previously was Neutral and also lowered its target price recommendation from $198.50 to $28.50.

Insider Transactions:

Also, insider trades can serve as a great indicator of what management thinks about the future direction of a stock’s price. A recent insider transaction in this stock occurred on Mar 13 when Dudiak Dolores D sold 65 shares for $39.74 per share. The transaction valued at 2,583 led to the insider holds 75,452 shares of the business.

Uhlman Paul A sold 14,256 shares of FHI for $556,933 on Mar 07. The Vice President now owns 370,073 shares after completing the transaction at $39.07 per share. On Mar 07, another insider, Nusseibeh Saker Anwar, who serves as the CEO, Hermes Fund Managers Ltd. of the company, sold 9,933 shares for $39.12 each. As a result, the insider received 388,591 and left with 256,569 shares of the company.

Valuation Measures:

As of this moment, Federated’s Price-to-Earnings (P/E) ratio for their current fiscal year is 14.96, and their Forward P/E ratio for the next fiscal year is 11.11. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.92. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.48 while its Price-to-Book (P/B) ratio in mrq is 3.27.

Stock Price History:

Over the past 52 weeks, FHI has reached a high of $41.20, while it has fallen to a 52-week low of $27.88. The 50-Day Moving Average of the stock is 39.09, while the 200-Day Moving Average is calculated to be 35.44.

Shares Statistics:

FHI traded an average of 701.54K shares per day over the past three months and 1.13M shares per day over the past ten days. A total of 85.32M shares are outstanding, with a floating share count of 84.83M. Insiders hold about 3.80% of the company’s shares, while institutions hold 81.90% stake in the company. Shares short for FHI as of Jan 12, 2023 were 1.86M with a Short Ratio of 2.37M, compared to 1.69M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 2.09% and a Short% of Float of 2.22%.

Dividends & Splits

With its trailing 12-month dividend rate of 1.08, FHI has a forward annual dividend rate of 1.08. Against a Trailing Annual Dividend Yield of 2.77%, it implies a Forward Annual Dividend Yield of 2.73%. The stock’s 5-year Average Dividend Yield is 3.67. The current Payout Ratio is 40.30% for FHI, which recently paid a dividend on Feb 14, 2023 with an ex-dividend date of Feb 06, 2023. Stock splits for the company last occurred on Jul 17, 2000 when the company split stock in a 3:2 ratio.

Earnings Estimates

The firm’s stock currently is rated by 6 analysts. On average, analysts expect EPS of $0.69 for the current quarter, with a high estimate of $0.75 and a low estimate of $0.55, while EPS last year was $0.61. The consensus estimate for the next quarter is $0.78, with high estimates of $0.88 and low estimates of $0.6.

Analysts are recommending an EPS of between $3.47 and $2.82 for the fiscal current year, implying an average EPS of $3.2. EPS for the following year is $3.6, with 7 analysts recommending between $3.84 and $3.32.

Revenue Estimates

It is expected that $90B in revenue will be generated in the current quarter, according to 4 analysts. It ranges from a high estimate of $383.63M to a low estimate of $380.3M. As of the current estimate, Federated Hermes Inc.’s year-ago sales were $324.76M, an estimated increase of 17.70% from the year-ago figure. For the next quarter, 4 analysts are estimating revenue of $387.81M, an increase of 6.00% less than the figure of $17.70% in the same quarter last year. There is a high estimate of $395.59M for the next quarter, whereas the lowest estimate is $384.35M.

A total of 5 analysts have provided revenue estimates for FHI’s current fiscal year. The highest revenue estimate was $1.6B, while the lowest revenue estimate was $1.56B, resulting in an average revenue estimate of $1.57B. In the same quarter a year ago, actual revenue was $1.45B, up 8.90% from the average estimate. Based on 5 analysts’ estimates, the company’s revenue will be $1.69B in the next fiscal year. The high estimate is $1.8B and the low estimate is $1.64B. The average revenue growth estimate for next year is up 7.40% from the average revenue estimate for this year.