Federated Hermes (NYSE:FHI) Announces Earnings Results

Federated Hermes (NYSE:FHI) announced its quarterly earnings data on Thursday. The company reported $1.38 earnings per share for the quarter, beating the consensus estimate of $1.19 by $0.19, Zacks reports. The firm had revenue of $502.78 million during the quarter, compared to the consensus estimate of $488.34 million. Federated Hermes had a return on equity of 34.43% and a net margin of 21.30%.The business’s revenue was up 18.3% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.16 earnings per share.

Federated Hermes Trading Up 1.3%

Shares of NYSE FHI traded up $0.75 during midday trading on Friday, hitting $60.22. 926,974 shares of the company traded hands, compared to its average volume of 530,453. Federated Hermes has a 12-month low of $46.66 and a 12-month high of $61.01. The firm has a market cap of $4.57 billion, a P/E ratio of 11.19, a P/E/G ratio of 1.61 and a beta of 0.65. The stock has a 50-day moving average price of $57.76 and a 200 day moving average price of $56.25. The company has a debt-to-equity ratio of 0.29, a quick ratio of 2.73 and a current ratio of 3.28.

Federated Hermes Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, August 14th. Investors of record on Friday, August 7th will be given a dividend of $0.38 per share. The ex-dividend date is Friday, August 7th. This represents a $1.52 annualized dividend and a dividend yield of 2.5%. Federated Hermes’s payout ratio is currently 29.46%.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the stock. JPMorgan Chase & Co. cut their target price on shares of Federated Hermes from $56.00 to $53.00 and set an “underweight” rating on the stock in a report on Monday, May 4th. TD Cowen lowered their price target on shares of Federated Hermes from $58.00 to $54.00 and set a “hold” rating for the company in a report on Monday, May 4th. Weiss Ratings reissued a “buy (b)” rating on shares of Federated Hermes in a research report on Friday, July 17th. Wall Street Zen raised shares of Federated Hermes from a “hold” rating to a “buy” rating in a report on Saturday. Finally, Royal Bank Of Canada raised their price target on shares of Federated Hermes from $54.00 to $57.00 and gave the stock a “sector perform” rating in a report on Thursday, July 2nd. Two equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Federated Hermes has a consensus rating of “Hold” and a consensus target price of $55.75.

Federated Hermes News Roundup

Here are the key news stories impacting Federated Hermes this week:

• Positive Sentiment: Quarterly earnings beat estimates: Federated Hermes reported diluted EPS of $1.38, up from $1.16 a year earlier and above the $1.19 consensus estimate. Revenue reached $502.8 million, exceeding expectations of $488.3 million and increasing 18.3% year over year. Federated Hermes Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Record managed assets support future fee revenue: Total assets under management rose to a record $911.6 billion as of June 30, up 8% from a year earlier and $4.5 billion from the previous quarter. Equity assets also reached a record $109.6 billion. The growth suggests favorable scale and potential support for future operating results. Federated Hermes Reports Record Assets Under Management
• Positive Sentiment: Dividend maintained: The board declared a quarterly dividend of $0.38 per share, equivalent to $1.52 annually and an indicated yield of approximately 2.5%. Shareholders of record on August 7 will receive payment on August 14. Federated Hermes Dividend Announcement
• Neutral Sentiment: Investor focus turns to expenses and outlook: The earnings beat was achieved despite higher operating expenses. Investors may look for additional details from the earnings presentation and call regarding expense trends, asset flows, fee rates and the sustainability of the record asset base. Federated Hermes 2026 Q2 Results Presentation

Insider Activity

In other Federated Hermes news, CEO Saker Anwar Nusseibeh sold 8,950 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $57.34, for a total transaction of $513,193.00. Following the transaction, the chief executive officer owned 151,276 shares in the company, valued at approximately $8,674,165.84. This represents a 5.59% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Bryan M. Burke sold 4,000 shares of the stock in a transaction that occurred on Thursday, May 7th. The stock was sold at an average price of $54.20, for a total value of $216,800.00. Following the completion of the transaction, the vice president directly owned 74,921 shares of the company’s stock, valued at $4,060,718.20. This represents a 5.07% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 4.20% of the company’s stock.

Institutional Investors Weigh In On Federated Hermes

Several hedge funds have recently made changes to their positions in the company. CIBC Private Wealth Group LLC grew its stake in Federated Hermes by 119.7% in the fourth quarter. CIBC Private Wealth Group LLC now owns 736 shares of the company’s stock worth $38,000 after purchasing an additional 401 shares during the period. Parkside Financial Bank & Trust lifted its position in Federated Hermes by 145.8% during the fourth quarter. Parkside Financial Bank & Trust now owns 848 shares of the company’s stock valued at $44,000 after buying an additional 503 shares during the period. BI Asset Management Fondsmaeglerselskab A S bought a new stake in shares of Federated Hermes during the 2nd quarter valued at $56,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Federated Hermes by 76.5% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,567 shares of the company’s stock valued at $69,000 after buying an additional 679 shares in the last quarter. Finally, Headlands Technologies LLC purchased a new stake in shares of Federated Hermes in the 2nd quarter worth about $76,000. 75.94% of the stock is currently owned by institutional investors.

About Federated Hermes

Federated Hermes, Inc is a global investment manager that provides a range of asset management solutions to institutional and individual investors. The company offers active strategies across equity, fixed income, multi-asset, liquidity, and alternative investments. Through its suite of mutual funds, separate accounts and collective investment vehicles, Federated Hermes seeks to deliver performance-driven outcomes aligned with client objectives and risk tolerances.

In addition to traditional investment management, Federated Hermes has developed specialized capabilities in sustainability and responsible investing, integrating environmental, social and governance (ESG) research into its investment process.