Federated Investors, Inc. (FII) Rating Increased to Buy at Zacks Investment Research
Federated Investors, Inc. (NYSE:FII) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Monday. The brokerage presently has a $33.00 price objective on the asset manager’s stock. Zacks Investment Research‘s target price points to a potential upside of 11.11% from the stock’s current price.
According to Zacks, “Shares of Federated have underperformed the industry over the last six months. Yet, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Rise in interest rates and lower fee waivers are expected to aid top-line performance, moving ahead. Also, Federated’s inorganic growth strategies encourage us. Further, the company’s active involvement in capital deployment activities continues to inspire investors’ confidence. However, mounting expenses are a major concern. Also, strict regulations for investment management companies remain a headwind.”
Several other brokerages have also recently weighed in on FII. BidaskClub cut shares of Federated Investors from a “hold” rating to a “sell” rating in a research report on Tuesday, August 1st. Keefe, Bruyette & Woods reissued a “sell” rating and issued a $27.00 price target on shares of Federated Investors in a report on Thursday, August 3rd. Citigroup Inc. cut shares of Federated Investors from a “neutral” rating to a “sell” rating and decreased their price objective for the company from $26.00 to $24.00 in a research report on Monday, June 5th. Royal Bank Of Canada set a $28.00 price objective on shares of Federated Investors and gave the company a “hold” rating in a research report on Friday, July 28th. Finally, Credit Suisse Group lowered their price objective on shares of Federated Investors from $29.00 to $27.00 and set a “neutral” rating for the company in a research note on Friday, August 11th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the stock. The company currently has a consensus rating of “Hold” and a consensus price target of $24.86.
Federated Investors (NYSE:FII) traded up 1.75% during mid-day trading on Monday, reaching $30.22. 402,424 shares of the company’s stock were exchanged. Federated Investors has a one year low of $24.52 and a one year high of $30.23. The stock has a 50-day moving average of $27.29 and a 200-day moving average of $27.11. The stock has a market cap of $2.95 billion, a price-to-earnings ratio of 14.39 and a beta of 1.45.
Federated Investors (NYSE:FII) last released its quarterly earnings data on Thursday, July 27th. The asset manager reported $0.53 earnings per share for the quarter, beating analysts’ consensus estimates of $0.50 by $0.03. Federated Investors had a return on equity of 33.93% and a net margin of 18.91%. The firm had revenue of $272.80 million during the quarter, compared to analyst estimates of $278.51 million. During the same quarter in the prior year, the firm posted $0.51 earnings per share. The business’s quarterly revenue was down 4.8% compared to the same quarter last year. On average, equities research analysts anticipate that Federated Investors will post $2.06 earnings per share for the current year.
In other news, VP John B. Fisher sold 5,041 shares of the firm’s stock in a transaction dated Wednesday, August 2nd. The shares were sold at an average price of $27.97, for a total value of $140,996.77. Following the completion of the sale, the vice president now directly owns 514,905 shares of the company’s stock, valued at approximately $14,401,892.85. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 7.10% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in the stock. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in Federated Investors by 60.7% in the first quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,126 shares of the asset manager’s stock worth $109,000 after buying an additional 1,559 shares during the period. FNY Partners Fund LP bought a new stake in Federated Investors during the 1st quarter valued at approximately $131,000. Advisory Services Network LLC boosted its position in Federated Investors by 9.4% during the 2nd quarter. Advisory Services Network LLC now owns 5,968 shares of the asset manager’s stock valued at $169,000 after acquiring an additional 511 shares in the last quarter. Cornerstone Capital Management Holdings LLC. bought a new stake in Federated Investors during the 2nd quarter valued at approximately $176,000. Finally, Advisor Group Inc. boosted its position in Federated Investors by 9.9% during the 2nd quarter. Advisor Group Inc. now owns 6,300 shares of the asset manager’s stock valued at $177,000 after acquiring an additional 565 shares in the last quarter. 82.88% of the stock is owned by institutional investors.
About Federated Investors
Federated Investors, Inc (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products.
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