Across the recent three months, 8 analysts have shared their insights on Federated Hermes FHI, expressing a variety of opinions spanning from bullish to bearish.
The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 1 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 1 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 1 | 1 | 3 | 0 | 0 |
Analysts have recently evaluated Federated Hermes and provided 12-month price targets. The average target is $41.75, accompanied by a high estimate of $46.00 and a low estimate of $36.00. Observing a 4.38% increase, the current average has risen from the previous average price target of $40.00.
Deciphering Analyst Ratings: An In-Depth Analysis
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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Brian Bedell | Deutsche Bank | Lowers | Hold | $43.00 | $45.00 |
| Kenneth Worthington | JP Morgan | Lowers | Neutral | $42.00 | $49.00 |
| Brian Bedell | Deutsche Bank | Raises | Buy | $45.00 | $43.00 |
| John Dunn | Evercore ISI Group | Raises | Outperform | $43.00 | $41.00 |
| Kenneth Lee | RBC Capital | Raises | Sector Perform | $39.00 | $36.00 |
| Bill Kirk | TD Cowen | Raises | Buy | $46.00 | $35.00 |
| Adam Beatty | UBS | Raises | Neutral | $40.00 | $36.00 |
| Kenneth Lee | RBC Capital | Raises | Sector Perform | $36.00 | $35.00 |
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: Gaining insights, analysts provide estimates for the future value of Federated Hermes's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Federated Hermes's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Federated Hermes analyst ratings.
Discovering Federated Hermes: A Closer Look
Federated Hermes provides asset-management services for institutional and individual investors. The firm had $800 billion in managed assets at the end of September 2024, composed of equity (10%), multi-asset (less than 1%), fixed-income (12%), alternative (3%), and money market (74%) funds. The firm's cash-management operations are expected to generate around 51% of Federated's revenue this year, compared with 29%, 12%, and 7%, 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 (65% of AUM), institutional investors (26%), and international clients (9%).
Breaking Down Federated Hermes's Financial Performance
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Federated Hermes's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 1.44%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Federated Hermes's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 20.51%, the company may encounter challenges in effective cost control.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.98%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Federated Hermes's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.24% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Federated Hermes's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.41.
Analyst Ratings: Simplified
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 will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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