Stock Price & Analysis

FHI stock is currently near key support levels with mixed analyst sentiment and recent insider selling activity. Hold the stock until further market clarity emerges.

The price prediction for FHI stock in 2025 is expected to range between $38 and $40, with a potential high of $41 if market conditions improve. This forecast is based on current technical indicators, mixed analyst sentiment, and recent insider activity.

The S1 support level for FHI Stock is $37.48 ,The R1 resistant level for FHI Stock is $39.85.

As of the end of day on 2025-03-24, the price of FHI Stock was $40.35.

The target price for FHI Stock according to analyst rating is 41.88, with the highest price target at 44.00 and the lowest at 39.00. Analysts have a Hold rating on FHI Stock overall.

The market cap of FHI is $3.2B.

Analysis and Insights

To determine if Federated Hermes Inc. (FHI) is overvalued, we analyze its financial metrics, valuation ratios, and market sentiment.

Valuation Metrics:

FHI's current price is $39.21. Key valuation metrics include:

• P/E Ratio: 11.65 (Q3 2024) and 12.72 (Q4 2024)
• EV/EBITDA: 5.73 (Q3 2024) and 6.47 (Q4 2024)
• P/S Ratio: 1.88 (Q3 2024) and 2.06 (Q4 2024)
• P/B Ratio: 2.78 (Q3 2024) and 3.07 (Q4 2024)
• Dividend Yield: 3.21% (Q3 2024) and 2.94% (Q4 2024)

These metrics suggest FHI is fairly valued, with a reasonable P/E ratio and an attractive dividend yield.

Financial Performance:

• Revenue: Increased slightly from $402.622 million in Q3 2024 to $409.414 million in Q4 2024.
• Net Income: Dropped from $83.791 million in Q3 2024 to $81.064 million in Q4 2024.
• Gross Margin: Declined from 23.28% to 23.09%.
• Current Ratio: Healthy at 2.75 and 2.7, indicating good liquidity.
• Debt-to-Equity Ratio: 30.61% and 30.25%, showing manageable debt levels.

Market Sentiment:

• Analyst Ratings: Mixed, with downgrades from JP Morgan and Deutsche Bank, but maintained ratings from UBS and RBC Capital.
• Insider Activity: CEO sold 3% of their shares, and institutional investors showed mixed movements.

Conclusion:

FHI is not significantly overvalued. Its valuation metrics are reasonable, with a strong dividend yield. However, the slight decline in net income and mixed sentiment warrant caution. Investors should monitor future earnings and market trends.

Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 180 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations and retirement plans.

FHI stock is predicted to reach $48 by 2030, driven by its AI-driven initiatives and market expansion. However, risks like insider sales and competition may impact growth.

FHI has a total of 2025 employees.