The Analyst Landscape: 5 Takes On Federated Hermes

5 analysts have expressed a variety of opinions on Federated Hermes FHI over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

Analysts have recently evaluated Federated Hermes and provided 12-month price targets. The average target is $36.6, accompanied by a high estimate of $40.00 and a low estimate of $33.00. Witnessing a positive shift, the current average has risen by 2.81% from the previous average price target of $35.60.

Diving into Analyst Ratings: An In-Depth Exploration

An in-depth analysis of recent analyst actions unveils how financial experts perceive Federated Hermes. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

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: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Federated Hermes compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Federated Hermes's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Federated Hermes's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Federated Hermes analyst ratings.

Delving into Federated Hermes's Background

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%).

Federated Hermes's Financial Performance

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.

Decline in Revenue: Over the 3 months period, Federated Hermes faced challenges, resulting in a decline of approximately -7.07% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 4.05%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Federated Hermes's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 1.51%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Federated Hermes's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.81%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Federated Hermes's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 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.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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