Federated Hermes Inc. (FHI) stock is nearly perfect except the valuation

The price of Federated Hermes Inc. (NYSE: FHI) closed at $35.36 in the last session, down -2.02% from day before closing price of $36.09. In other words, the price has decreased by -$0.73 from its previous closing price. On the day, 962656 shares were traded. FHI stock price reached its highest trading level at $35.97 during the session, while it also had its lowest trading level at $34.54.

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We take a closer look at FHI’s different ratios to gain a better understanding of the stock. For the most recent quarter (mrq), Quick Ratio is recorded 3.00 and its Current Ratio is at 3.00. In the meantime, Its Debt-to-Equity ratio is 0.31 whereas as Long-Term Debt/Eq ratio is at 0.31.

Upgrades & Downgrades

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on May 19 when DONAHUE J CHRISTOPHER sold 50,000 shares for $36.41 per share. The transaction valued at 1,820,670 led to the insider holds 152,963 shares of the business.

DONAHUE J CHRISTOPHER sold 75,000 shares of FHI for $2,753,378 on May 18. The Chairman, President & CEO now owns 202,963 shares after completing the transaction at $36.71 per share. On May 12, another insider, DONAHUE J CHRISTOPHER, who serves as the Chairman, President & CEO of the company, sold 30,561 shares for $37.50 each. As a result, the insider received 1,145,982 and left with 277,963 shares of the company.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, FHI now has a Market Capitalization of 3.69B and an Enterprise Value of 3.62B. As of this moment, Federated’s Price-to-Earnings (P/E) ratio for their current fiscal year is 12.39, and their Forward P/E ratio for the next fiscal year is 9.44. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.69. For the stock, the TTM Price-to-Sale (P/S) ratio is 2.12 while its Price-to-Book (P/B) ratio in mrq is 2.71. Its current Enterprise Value per Revenue stands at 2.51 whereas that against EBITDA is 10.03.

Stock Price History:

Over the past 52 weeks, FHI has reached a high of $45.55, while it has fallen to a 52-week low of $28.69. The 50-Day Moving Average of the stock is 40.00, while the 200-Day Moving Average is calculated to be 37.17.

Shares Statistics:

According to the various share statistics, FHI traded on average about 1.01M shares per day over the past 3-months and 966.21k shares per day over the past 10 days. A total of 84.88M 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 Apr 27, 2023 were 1.96M with a Short Ratio of 1.96M, compared to 2.89M on Mar 30, 2023. Therefore, it implies a Short% of Shares Outstanding of 2.19% and a Short% of Float of 2.31%.

Dividends & Splits

The forward annual dividend rate for FHI is 1.12, which was 1.08 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 2.99%, it implies a Forward Annual Dividend Yield of 3.07%. The stock’s 5-year Average Dividend Yield is 3.64. The current Payout Ratio is 42.98% for FHI, which recently paid a dividend on May 14, 2023 with an ex-dividend date of May 04, 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 company has 6 analysts who recommend its stock at the moment. On average, analysts expect EPS of $0.81 for the current quarter, with a high estimate of $0.84 and a low estimate of $0.78, while EPS last year was $0.64. The consensus estimate for the next quarter is $0.84, with high estimates of $0.9 and low estimates of $0.75.

Analysts are recommending an EPS of between $3.48 and $3.23 for the fiscal current year, implying an average EPS of $3.33. EPS for the following year is $3.74, with 7 analysts recommending between $3.92 and $3.5.

Revenue Estimates

According to 5 analysts, the current quarter’s revenue is expected to be $400.51M. It ranges from a high estimate of $404.04M to a low estimate of $395.79M. As of the current estimate, Federated Hermes Inc.’s year-ago sales were $366.01M, an estimated increase of 9.40% from the year-ago figure. For the next quarter, 5 analysts are estimating revenue of $410.19M, an increase of 8.90% less than the figure of $9.40% in the same quarter last year. There is a high estimate of $412.4M for the next quarter, whereas the lowest estimate is $406.4M.

A total of 5 analysts have provided revenue estimates for FHI’s current fiscal year. The highest revenue estimate was $1.62B, while the lowest revenue estimate was $1.59B, resulting in an average revenue estimate of $1.61B. In the same quarter a year ago, actual revenue was $1.45B, up 11.30% from the average estimate. Based on 5 analysts’ estimates, the company’s revenue will be $1.75B in the next fiscal year. The high estimate is $1.85B and the low estimate is $1.71B. The average revenue growth estimate for next year is up 8.60% from the average revenue estimate for this year.