Beyond The Numbers: 5 Analysts Discuss Federated Hermes Stock

During the last three months, 5 analysts shared their evaluations of Federated Hermes FHI, revealing diverse outlooks from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $42.4, with a high estimate of $45.00 and a low estimate of $39.00. Observing a downward trend, the current average is 3.64% lower than the prior average price target of $44.00.

Analyzing Analyst Ratings: A Detailed Breakdown

A clear picture of Federated Hermes's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below 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: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into 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.

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.

Delving into Federated Hermes's Background

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%).

Financial Insights: Federated Hermes

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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. 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 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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.41.

How Are Analyst Ratings Determined?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

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.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

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