Federated Hermes (FHI) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. The powe ...

Investors looking for stocks in the Financial - Investment Management sector might want to consider either Federated Hermes (FHI) or Blue Owl Capital Inc. (OWL) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks ...

Investors in Federated Hermes, Inc. (FHI) need to pay close attention to the stock based on moves in the options market lately. That is because the Oct 18, 2024 $25 Call had some of the highest implied volatility of all equity options today. What is Implied Volatility? Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could ...

Core Viewpoint - Federated Hermes, Inc. is experiencing growth in assets under management (AUM) through strategic acquisitions in the money market sector, but rising expenses and reliance on net investment advisory fees present challenges [1][3][7]. Group 1: AUM Growth and Strategic Acquisitions - The acquisition of money market assets indicates Federated's strong position in the money market business, with significant growth in money market AUM in the first half of 2024 [3]. - The company has engaged in strategic deals, including the buyout of C.W. Henderson and Associates, Inc., which enhances its separately managed account business [4]. - Federated's average AUM has shown a five-year compound annual growth rate (CAGR) of 11.9% as of 2023, with continued growth expected in the first half of 2024 [4]. Group 2: Capital Distribution Activities - Federated's capital distribution activities are positive, with a share repurchase program authorized for up to five million shares in June 2022 and an additional five million shares in October 2023 [5]. - The company has consistently paid dividends since its IPO in 1998, increasing its quarterly dividend by 10.7% to 31 cents per share in April 2024 [6]. - As of June 30, 2024, Federated's long-term debt was $348 million, and cash and other investments totaled $452.95 million, indicating a strong liquidity position [6]. Group 3: Challenges to Growth - Rising expenses are a concern for Federated, with expectations of increased distribution costs and new hires potentially escalating the cost base [7]. - Management anticipates higher advertising and promotion costs in the second half of 2024 compared to the first half, which may pressure profitability [7]. - Net investment advisory fees accounted for 66.2% of total revenues as of June 30, 2024, making the company vulnerable to fluctuations in the fair value of securities and fund redemptions [8].

PITTSBURGH, July 31, 2024 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in investment management, today announced the launch of four actively managed ETFs that take a quantitative approach to stock selection. The new products offer investors another way to access the disciplined Federated Hermes MDT investment process, crafted and refined for more than 30 years and now available in an ETF structure. Federated Hermes MDT Large Cap Core ETF (FLCC) Federated Hermes MDT Large Cap Growth ET ...

(a) not applicable. The following exhibits required to be filed or furnished by Item 601 of Regulation S-K are filed or furnished herewith and incorporated by reference herein: Net income decreased $45.7 million for the six-month period ended June 30, 2024, as compared to the same period in 2023, primarily as a result of the changes in revenues, expenses, nonoperating income (expenses) and income taxes noted above. Diluted earnings per share for the six-month period ended June 30, 2024 decreased $0.47, as c ...

Core Viewpoint - Federated Hermes reported a mixed financial performance for the quarter ended June 2024, with a decline in revenue but an increase in earnings per share (EPS) compared to the previous year [2]. Financial Performance - Revenue for the quarter was $402.58 million, down 7.1% year-over-year, but exceeded the Zacks Consensus Estimate by 1.31% [2]. - EPS was reported at $0.96, an increase from $0.81 in the same quarter last year, representing a surprise of 7.87% over the consensus estimate of $0.89 [2]. Managed Assets Overview - Managed Assets in Alternative/private markets were $20.06 billion, slightly below the average estimate of $20.64 billion [4]. - Managed Assets in Multi-asset were $2.88 billion, slightly above the average estimate of $2.84 billion [4]. - Total long-term assets managed were $196.08 billion, exceeding the average estimate of $195.26 billion [4]. - Money market managed assets were $586.65 billion, surpassing the average estimate of $560.22 billion [4]. Revenue Breakdown - Administrative service fees, net, were $95.35 million, exceeding the average estimate of $91.47 million, with a year-over-year increase of 11.9% [4]. - Other service fees, net, were $36.62 million, slightly below the average estimate of $36.99 million, reflecting a year-over-year decline of 2.9% [4]. - Investment advisory fees, net, were $270.62 million, above the average estimate of $267.01 million, but showed a year-over-year decrease of 12.8% [4].

Exhibit 99.1 Federated Hermes, Inc. reports record assets under management with second quarter 2024 earnings (PITTSBURGH, Pa., July 25, 2024) — Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $0.20 for Q2 2024, compared to $0.81 for the same quarter last year, on net income of $21.0 million for Q2 2024, compared to $72.2 million for Q2 2023. Federated Hermes' Q2 2024 results include a $66.3 million non- cash expense, or ...

The earnings report, which is expected to be released on July 25, 2024, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. Zacks Consensus Estimate Revenues are expected to be $397.56 million, down 8.2% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.71% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collect ...

A telephone replay of the call will begin at approximately 12:30 p.m. Eastern on July 26, 2024. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter the access code 50846. The online replay will be available via FederatedHermes.com/us for one year. SOURCE Federated Hermes, Inc. Investors interested in listening to the conference call should dial 888-506-0062 (domestic) or 973-528-0011 (international) or visit FederatedHermes.com/us for real-time Internet acc ...