Federated Hermes, Inc. (NYSE:FHI) reported upbeat earnings for the third quarter, after the closing bell on Thursday.
The company posted quarterly earnings of $1.06 per share which beat the analyst consensus estimate of 91 cents per share. The company reported quarterly sales of $408.456 million which missed the analyst consensus estimate of $409.260 million.
"Federated Hermes reached record assets under management for the eighth consecutive quarter on the strength of flows into money market and fixed-income products, along with market appreciation of equity and fixed-income assets. This continued after the Fed's mid-September rate cut, as money market products historically offer a yield advantage when compared to bank deposit accounts and some securities in the direct market," said J. Christopher Donahue, president and chief executive officer. "We also saw interest in our Total Return Bond Fund and core plus strategies—in mutual fund, ETF and collective investment fund offerings—as those products are well positioned to meet changing market conditions. In equities, we saw positive net flows in nine of our strong-performing Federated Hermes MDT quantitative mutual funds and ETFs."
Federated Hermes shares gained 3.5% to trade at $39.97 on Monday.
These analysts made changes to their price targets on Federated Hermes following earnings announcement.
- TD Cowen analyst Bill Kirk upgraded Federated Hermes from Hold to Buy and raised the price target from $35 to $46.
- RBC Capital analyst Kenneth Lee maintained the stock with a Sector Perform and raised the price target from $36 to $39.
Considering buying FHI stock? Here's what analysts think:
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