Russell Investments Group Ltd Increases Stake in Federated Hermes Inc. by 125.9%: Equities Analysts Give Positive Ratings

May 19, 2023 – In recent news, Russell Investments Group Ltd has revealed that it increased its stake in shares of Federated Hermes, Inc. by a whopping 125.9% during the fourth quarter. The SEC filing Form 13F disclosed that the fund owned a staggering 84,041 shares of the company’s stock after purchasing an extra 46,842 shares during that period. At the end of Q4 last year, Russell Investments Group Ltd’s stake was valued at $3,052,000.

This marked increase in Federated Hermes’ stock ownership has been keenly observed by several equities analysts who now report on the company’s activities. Among them are Deutsche Bank and StockNews.com who both released their views on Federated Hermes earlier this month. Deutsche Bank recently upped their price target from $44 to $45 while StockNews.com assumes coverage of the company, giving it a “buy” rating.

Evercore ISI weighed in with their opinion as well in a research note noting that they had raised Federated Hermes’ target price from $43 to $45 and awarded it an “outperform” rating back on April 13th. JPMorgan Chase & Co also shared their thoughts concerning the stock; they upgraded Federated Hermes from an “underweight” rating to an “overweight” rating and increased their target price for the share from $35 to $47 on April 11th. With these ratings given by leading industry analysts, it is clear that there is significant positive attention being focused on Federated Hermes’ activities and potential growth prospects.

Shares for NYSE FHI opened at $36.68 on Friday – May 19th. The company has a current market cap of approximately $3.28 billion while its one-year low and high prices stand at $28.69 and $45.55 respectively.

In conclusion, due to various investment strategies taken by world-class wealth management companies and most recent research notes given by various equities analysts, Federated Hermes Inc. seems to show a lot of promise for market investors in the upcoming fiscal year and remains an excellent company to watch closely.

Federated Hermes Shows Promising Growth Despite Insider Sales

Investors and stock analysts have been keeping a close eye on Federated Hermes (NYSE:FHI) as the company continues to show promising growth. Envestnet Asset Management Inc. recently boosted its stake in the company by over 67%, and Murphy Pohlad Asset Management LLC also lifted its stake by 0.7%. In total, institutional investors and hedge funds now own 78.82% of FHI’s stock, indicating a strong vote of confidence from industry experts.

In May of 2023, the vice president of FHI, Stephen Van, sold 4,480 shares of the company’s stock in a transaction worth $176,467.20. Similarly, CEO Saker Anwar Nusseibeh sold 20,000 shares for a total value of $749,600. Insiders have sold a total of 35,897 shares in the past three months alone.

Despite these insider sales, several equities analysts maintain a positive outlook on FHI’s future performance. Deutsche Bank Aktiengesellschaft upped its price target to $45, and Evercore ISI increased its target price from $43 to $45 while rating the stock as “outperform.” JPMorgan Chase & Co., previously rating FHI as “underweight,” upgraded it to an “overweight” rating with a target price increase to $47.

Federated Hermes reported earnings per share of $0.78 for Q1 of 2023, beating the consensus estimate by $0.04. The company had revenue of $382.20 million for the quarter and is projected to post EPS of 3.29 for the current fiscal year.

Shareholders were pleased with FHI’s announcement in May that it would increase its quarterly dividend from $0.27 to $0.28 per share resulting in an annualized dividend yield of 3.05%. The ex-dividend date was May 5th, and stockholders of record on May 8th received their payout on May 15th.

Overall, Federated Hermes has shown strong financials and an increasingly positive outlook from industry experts. Though some insiders have sold shares recently, the company’s performance and institutional investment are instilling confidence in investors. With a dividend payout ratio around 39.58%, FHI continues to provide value and growth potential for its shareholders.