Federated Hermes, Inc. (NYSE:FHI) Plans Dividend Increase – $0.31 Per Share

Federated Hermes, Inc. (NYSE:FHI) announced a quarterly dividend on Friday, July 26th, Wall Street Journal reports. Shareholders of record on Thursday, August 8th will be given a dividend of 0.31 per share on Thursday, August 15th. This represents a $1.24 annualized dividend and a yield of 3.54%. The ex-dividend date is Thursday, August 8th. This is a boost from Federated Hermes’s previous quarterly dividend of $0.28.

Federated Hermes has increased its dividend by an average of 0.9% per year over the last three years. Federated Hermes has a payout ratio of 30.5% indicating that its dividend is sufficiently covered by earnings. Analysts expect Federated Hermes to earn $3.95 per share next year, which means the company should continue to be able to cover its $1.24 annual dividend with an expected future payout ratio of 31.4%.

Federated Hermes Stock Performance

Shares of NYSE:FHI traded down $0.37 during trading on Friday, reaching $35.06. The company had a trading volume of 1,192,221 shares, compared to its average volume of 764,288. Federated Hermes has a fifty-two week low of $30.23 and a fifty-two week high of $37.10. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.39 and a quick ratio of 2.45. The stock’s fifty day moving average price is $32.98 and its 200 day moving average price is $34.26. The firm has a market capitalization of $2.95 billion, a price-to-earnings ratio of 10.02, a price-to-earnings-growth ratio of 1.35 and a beta of 1.17.

Federated Hermes (NYSE:FHI) last announced its quarterly earnings data on Thursday, July 25th. The company reported $0.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.89 by $0.07. Federated Hermes had a net margin of 18.75% and a return on equity of 27.00%. The company had revenue of $402.60 million for the quarter, compared to analysts’ expectations of $400.35 million. During the same period in the previous year, the company posted $0.81 EPS. Federated Hermes’s revenue was down 7.1% compared to the same quarter last year. As a group, equities research analysts predict that Federated Hermes will post 3.62 EPS for the current year.

Insider Buying and Selling at Federated Hermes

In other news, VP Paul A. Uhlman sold 994 shares of Federated Hermes stock in a transaction on Monday, June 17th. The stock was sold at an average price of $31.43, for a total transaction of $31,241.42. Following the completion of the transaction, the vice president now owns 298,578 shares of the company’s stock, valued at approximately $9,384,306.54. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. In other Federated Hermes news, VP Paul A. Uhlman sold 994 shares of the firm’s stock in a transaction on Monday, June 17th. The stock was sold at an average price of $31.43, for a total transaction of $31,241.42. Following the completion of the transaction, the vice president now owns 298,578 shares of the company’s stock, valued at $9,384,306.54. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Paul A. Uhlman sold 975 shares of the company’s stock in a transaction on Tuesday, May 28th. The shares were sold at an average price of $33.00, for a total value of $32,175.00. Following the completion of the sale, the vice president now owns 299,572 shares in the company, valued at $9,885,876. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 2,361 shares of company stock valued at $76,360. Insiders own 3.70% of the company’s stock.

Analysts Set New Price Targets

FHI has been the subject of a number of recent analyst reports. Evercore ISI reduced their price objective on shares of Federated Hermes from $39.00 to $37.00 and set an “outperform” rating for the company in a research report on Wednesday, May 1st. UBS Group cut their price objective on Federated Hermes from $36.00 to $35.00 and set a “neutral” rating for the company in a research report on Wednesday, July 10th. JPMorgan Chase & Co. boosted their target price on shares of Federated Hermes from $46.00 to $47.00 and gave the stock an “overweight” rating in a research report on Thursday, July 11th. Finally, TD Cowen cut their price target on shares of Federated Hermes from $36.00 to $34.00 and set a “hold” rating for the company in a report on Monday, July 8th. Three equities research analysts have rated the stock with a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $38.00.

Federated Hermes Company Profile

Federated Hermes, Inc is a publicly owned investment manager. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.