Germain Peter J, Executive Vice President, Chief Legal Officer, and Secretary at Federated Hermes, Inc. (NYSE:FHI (TSX:FHI)), has sold 14,491 shares of Class B Common Stock. The shares were sold on November 8, 2024, at a weighted average price of $41.1218, resulting in a total transaction value of approximately $595,896. Following this transaction, Germain retains direct ownership of 198,153 shares in the company.
The sales were executed in 107 separate transactions, with prices ranging from $41.06 to $41.19 per share. The company is based in Pittsburgh, Pennsylvania, and operates in the investment advice industry.
In other recent news, Federated Investors reported a mixed third-quarter performance. The company achieved a record $800 billion in assets under management (AUM), largely due to significant contributions from money market and fixed income assets. Despite a $1.4 billion net redemption in equity assets, the company experienced growth in its alternative private markets and launched new products, including four active ETFs and a collective investment trust.
Total (EPA:TTEF) third-quarter revenue rose by 1% to $5.9 million, and operating expenses decreased due to non-recurring charges. The company also announced a new share repurchase program and anticipates further growth in industry assets.
Analysts noted that Federated Investors' equity assets faced net redemptions of $1.4 billion, and there was a $700 million decline in AUM within the alternatives sector. However, money market fund assets peaked at $447 billion, and client retention remained strong despite SEC money market fund reforms. The company is optimistic about attracting institutional investments and sees growth opportunities in alternative funds. These are some of the recent developments at Federated Investors.
InvestingPro Insights
Federated Hermes, Inc. (NYSE:FHI) has been showing strong market performance, with the stock trading near its 52-week high and demonstrating robust returns over the past month and quarter. This aligns with the recent insider sale by Executive Vice President Germain Peter J, potentially indicating a favorable market valuation.
According to InvestingPro data, FHI's market capitalization stands at $3.26 billion, with a P/E ratio of 13.28. This relatively modest P/E ratio suggests that the stock may be reasonably valued compared to its earnings, despite the recent price appreciation.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. Additionally, FHI has maintained dividend payments for 27 consecutive years, showcasing its commitment to shareholder returns. The current dividend yield is 2.94%, which may be attractive to income-focused investors.
It's worth noting that FHI's revenue growth has been modest, with a 0.44% increase in the last twelve months as of Q3 2024. However, the company's profitability remains strong, with a gross profit margin of 66.8% and an operating income margin of 21.9% for the same period.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Federated Hermes, Inc., providing a deeper understanding of the company's financial health and market position.
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