Zacks Investment Research downgraded shares of Federated Investors (NYSE:FII) from a buy rating to a hold rating in a report released on Wednesday morning.

According to Zacks, “Shares of Federated have outperformed the industry over the last six months. Also, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. It’s top-line continues to get support from the rise in interest rates and increasing assets under management. Also, Federated’s inorganic growth strategies to expand fund offerings encourage us. However, mounting expenses remain a major concern. Also, stretched valuation indicates limited upside potential in the stock.”

A number of other analysts have also weighed in on FII. Jefferies Group reissued a hold rating and issued a $30.00 price target (up previously from $29.00) on shares of Federated Investors in a report on Tuesday, October 10th. ValuEngine raised shares of Federated Investors from a hold rating to a buy rating in a report on Thursday, November 30th. Citigroup raised their price target on shares of Federated Investors from $22.00 to $24.00 and gave the company a sell rating in a report on Tuesday, October 31st. Keefe, Bruyette & Woods reissued a sell rating and issued a $31.00 price target on shares of Federated Investors in a report on Wednesday, November 1st. Finally, Deutsche Bank began coverage on shares of Federated Investors in a report on Tuesday, October 17th. They issued a hold rating and a $31.00 price target for the company. Three investment analysts have rated the stock with a sell rating, six have given a hold rating, one has assigned a buy rating and one has issued a strong buy rating to the company. Federated Investors presently has an average rating of Hold and a consensus price target of $29.88.

Shares of Federated Investors (NYSE FII) opened at $35.90 on Wednesday. The firm has a market cap of $3,559.89, a P/E ratio of 16.80, a PEG ratio of 3.02 and a beta of 1.56. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.89 and a current ratio of 3.33. Federated Investors has a fifty-two week low of $24.93 and a fifty-two week high of $36.67.

Federated Investors (NYSE:FII) last posted its quarterly earnings data on Thursday, October 26th. The asset manager reported $0.56 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.53 by $0.03. The company had revenue of $278.32 million during the quarter, compared to analyst estimates of $278.51 million. Federated Investors had a net margin of 19.32% and a return on equity of 34.54%. The company’s revenue was down 5.5% on a year-over-year basis. During the same quarter last year, the business posted $0.54 earnings per share. equities research analysts forecast that Federated Investors will post 2.15 EPS for the current year.

In other Federated Investors news, CFO Thomas R. Donahue sold 30,000 shares of Federated Investors stock in a transaction on Thursday, December 14th. The shares were sold at an average price of $34.79, for a total transaction of $1,043,700.00. Following the completion of the sale, the chief financial officer now owns 634,044 shares of the company’s stock, valued at approximately $22,058,390.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP John B. Fisher sold 6,460 shares of Federated Investors stock in a transaction on Thursday, November 2nd. The stock was sold at an average price of $31.49, for a total transaction of $203,425.40. Following the sale, the vice president now directly owns 508,445 shares of the company’s stock, valued at approximately $16,010,933.05. The disclosure for this sale can be found here. In the last three months, insiders sold 47,430 shares of company stock valued at $1,636,457. 7.10% of the stock is currently owned by company insiders.

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Virginia Retirement Systems ET AL grew its holdings in Federated Investors by 46.4% during the 3rd quarter. Virginia Retirement Systems ET AL now owns 36,600 shares of the asset manager’s stock worth $1,087,000 after acquiring an additional 11,600 shares during the period. BNP Paribas Arbitrage SA grew its holdings in Federated Investors by 36.3% during the 2nd quarter. BNP Paribas Arbitrage SA now owns 47,157 shares of the asset manager’s stock worth $1,332,000 after acquiring an additional 12,563 shares during the period. Ameriprise Financial Inc. grew its holdings in Federated Investors by 50.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 520,348 shares of the asset manager’s stock worth $14,698,000 after acquiring an additional 175,384 shares during the period. FMR LLC grew its holdings in Federated Investors by 3.5% during the 2nd quarter. FMR LLC now owns 9,096,091 shares of the asset manager’s stock worth $256,965,000 after acquiring an additional 304,322 shares during the period. Finally, Simmons Bank grew its holdings in Federated Investors by 3.8% during the 2nd quarter. Simmons Bank now owns 213,031 shares of the asset manager’s stock worth $6,019,000 after acquiring an additional 7,722 shares during the period. 85.22% of the stock is owned by hedge funds and other institutional investors.

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Federated Investors Company Profile

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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