Unveiling 6 Analyst Insights On Federated Hermes

In the preceding three months, 6 analysts have released ratings for Federated Hermes FHI, presenting a wide array of perspectives 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.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $37.17, a high estimate of $47.00, and a low estimate of $33.00. Highlighting a 0.88% decrease, the current average has fallen from the previous average price target of $37.50.

Exploring Analyst Ratings: An In-Depth Overview

A comprehensive examination of how financial experts perceive Federated Hermes is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Federated Hermes. This information offers a snapshot of how analysts perceive 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 navigate through adjustments in price targets, providing estimates for Federated Hermes's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Federated Hermes's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Federated Hermes analyst ratings.

Unveiling the Story Behind Federated Hermes

Federated Hermes provides asset-management services for institutional and individual investors. The firm had $782.7 billion in managed assets at the end of June 2024, composed of equity (10%), multi-asset (less than 1%), fixed-income (12%), alternative (3%), and money market (75%) funds. The firm's cash-management operations are expected to generate around 50% of Federated's revenue this year, compared with 28%, 12%, and 10%, respectively, for the equity, fixed-income, and alternatives/multi-asset operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (64% of AUM), institutional investors (27%), and international clients (9%).

Understanding the Numbers: Federated Hermes's Finances

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: Federated Hermes's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -7.07%. This indicates a decrease in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Financials sector.

Net Margin: Federated Hermes's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 4.05%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Federated Hermes's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of 1.51%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): Federated Hermes's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.81%, the company may face hurdles in achieving optimal financial returns.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.44.

The Significance of Analyst Ratings Explained

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a 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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.