PITTSBURGH—Theodore W. Zierden III, Vice President of Federated Hermes, Inc. (NYSE:FHI (TSX:FHI)), has recently executed a series of transactions involving the company's Class B Common Stock. According to a recent SEC filing, Zierden sold 2,478 shares on November 19, 2024, at a weighted average price of $41.413 per share, amounting to $102,621. This sale was conducted to satisfy tax obligations arising from the vesting of restricted shares.
In a separate transaction on November 18, 2024, Zierden acquired 15,000 shares at a price of $3.00 per share, totaling $45,000. Following these transactions, Zierden's direct ownership stands at 131,321 shares.
In other recent news, Federated Investors reported a mixed financial performance for its third quarter. The company saw record assets under management (AUM) reaching $800 billion, largely driven by money market and fixed income assets. Despite facing some redemptions in equity assets, Federated Investors launched new products and experienced growth in its alternative private markets. Total (EPA:TTEF) third-quarter revenue rose by 1% to $5.9 million, while operating expenses significantly decreased due to non-recurring charges.
The company also announced a new share repurchase program and anticipates further growth in industry assets. Federated Investors expects an increase in institutional flows with further Federal rate cuts and projects industry assets to reach $7 trillion by the end of 2023. Despite a decline in AUM within the alternatives sector and outflows in the Strategic Value Dividend fund, the company remains optimistic about attracting institutional investments.
The company's executives reported a robust increase in AUM during the third quarter of 2024, with a notable rise in money market and fixed income assets. The launch of new ETFs and investment trusts has bolstered its product offerings, despite some challenges in equity redemptions and alternatives. These are recent developments in the company's business.
InvestingPro Insights
Federated Hermes, Inc. (NYSE:FHI) has been showing strong financial performance and market positioning, as evidenced by recent InvestingPro data and tips. The company's stock is trading near its 52-week high, with a robust 28.59% price total return over the past six months. This aligns with the recent insider activity, suggesting confidence in the company's trajectory.
InvestingPro Tips highlight that FHI has maintained dividend payments for 27 consecutive years, demonstrating a commitment to shareholder returns. The current dividend yield stands at 3.0%, which may be attractive to income-focused investors. Additionally, management has been aggressively buying back shares, potentially indicating their belief in the company's undervaluation or future prospects.
From a valuation perspective, FHI's P/E ratio of 13.07 is relatively modest, especially considering its strong market position. However, an InvestingPro Tip notes that the company is trading at a high P/E ratio relative to near-term earnings growth, with a PEG ratio of 4.11 for the last twelve months as of Q3 2024.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Federated Hermes, providing a deeper understanding of the company's financial health and market position.
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