Fintel reports that on January 5, 2024, UBS initiated coverage of Federated Hermes (NYSE:FHI) with a Neutral recommendation.
Analyst Price Forecast Suggests 14.15% Upside
As of December 16, 2023, the average one-year price target for Federated Hermes is 38.08. The forecasts range from a low of 34.34 to a high of $47.25. The average price target represents an increase of 14.15% from its latest reported closing price of 33.36.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Federated Hermes is 1,705MM, an increase of 7.10%. The projected annual non-GAAP EPS is 3.65.
Federated Hermes Declares $0.28 Dividend
On October 26, 2023 the company declared a regular quarterly dividend of $0.28 per share ($1.12 annualized). Shareholders of record as of November 8, 2023 received the payment on November 15, 2023. Previously, the company paid $0.04 per share.
At the current share price of $33.36 / share, the stock's dividend yield is 3.36%.
Looking back five years and taking a sample every week, the average dividend yield has been 3.52%, the lowest has been 2.48%, and the highest has been 8.26%. The standard deviation of yields is 0.67 (n=234).
The current dividend yield is 0.25 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.33. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.04%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 601 funds or institutions reporting positions in Federated Hermes. This is a decrease of 46 owner(s) or 7.11% in the last quarter. Average portfolio weight of all funds dedicated to FHI is 0.21%, an increase of 3.35%. Total shares owned by institutions decreased in the last three months by 2.67% to 75,684K shares. 
The put/call ratio of FHI is 0.22, indicating a bullish outlook.
What are Other Shareholders Doing?
Schneider Downs Wealth Management Advisors holds 3,173K shares representing 3.88% ownership of the company. In it's prior filing, the firm reported owning 3,145K shares, representing an increase of 0.86%. The firm decreased its portfolio allocation in FHI by 3.38% over the last quarter.
Invesco holds 2,920K shares representing 3.57% ownership of the company. In it's prior filing, the firm reported owning 2,945K shares, representing a decrease of 0.84%. The firm decreased its portfolio allocation in FHI by 90.98% over the last quarter.
IJH - iShares Core S&P Mid-Cap ETF holds 2,753K shares representing 3.37% ownership of the company. In it's prior filing, the firm reported owning 2,579K shares, representing an increase of 6.29%. The firm decreased its portfolio allocation in FHI by 1.20% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 2,624K shares representing 3.21% ownership of the company. In it's prior filing, the firm reported owning 2,621K shares, representing an increase of 0.10%. The firm decreased its portfolio allocation in FHI by 1.84% over the last quarter.
FLPSX - Fidelity Low-Priced Stock Fund holds 2,340K shares representing 2.86% ownership of the company. In it's prior filing, the firm reported owning 2,291K shares, representing an increase of 2.08%. The firm increased its portfolio allocation in FHI by 8.07% over the last quarter.
Federated Hermes Background Information
(This description is provided by the company.)
Federated Hermes, Inc. is a leading global investment manager with $614.8 billion in assets under management as of Sept. 30, 2020. Guided by its conviction that responsible investing is the best way to create wealth over the long term, its investment solutions span equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies. Providing world- class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes' more than 1,900 employees include those in London, New York, Boston and several other offices worldwide.
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