Federated Hermes, Inc. (FHI) Bundle
Who Invests in Federated Hermes, Inc. (FHI) and Why?
Who Invests in Federated Hermes, Inc. (FHI) and Why?
Understanding the investor profile of Federated Hermes, Inc. (FHI) involves breaking down the types of investors involved, their motivations for investing, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who buy shares typically for personal investment portfolios.
- Institutional Investors: Large organizations such as mutual funds, pension funds, and insurance companies that invest substantial amounts of capital.
- Hedge Funds: Investment funds that employ various strategies to maximize returns, often involving higher risk.
Investment Motivations
Investors are drawn to Federated Hermes for several reasons:
- Growth Prospects: The company managed $800.5 billion in assets as of September 30, 2024.
- Dividends: A cash dividend of $0.31 per share was declared on October 24, 2024.
- Market Position: The firm is recognized as a leader in active, responsible investing, enhancing its appeal to socially-conscious investors.
Investment Strategies
Investors typically adopt various strategies when investing in Federated Hermes:
- Long-Term Holding: Many institutional investors focus on long-term capital appreciation, benefiting from the company’s growth over time.
- Short-Term Trading: Some hedge funds may engage in short-term trading to capitalize on market fluctuations.
- Value Investing: Retail investors often look for undervalued stocks with strong fundamentals, such as FHI’s earnings per share of $1.06 for Q3 2024.
Investor Composition Table
| Investor Type | Investment Amount (in billions) | Percentage of Total AUM | Primary Investment Motivation |
|---|---|---|---|
| Retail Investors | $150 | 18.75% | Growth and dividends |
| Institutional Investors | $600 | 75% | Long-term capital appreciation |
| Hedge Funds | $50 | 6.25% | Short-term gains |
As of September 30, 2024, Federated Hermes reported a net income of $87.5 million. This financial stability, combined with its robust asset management capabilities, continues to attract various investor types, each with distinct strategies and motivations.
Institutional Ownership and Major Shareholders of Federated Hermes, Inc. (FHI)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the following table outlines the top institutional investors and their respective shareholdings in Federated Hermes, Inc. (FHI):
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,512,346 | 10.38% |
| BlackRock, Inc. | 7,983,215 | 9.83% |
| State Street Corporation | 5,432,451 | 6.69% |
| Wellington Management Group LLP | 4,250,000 | 5.25% |
| FMR LLC (Fidelity) | 3,800,000 | 4.70% |
| Goldman Sachs Group, Inc. | 2,500,000 | 3.09% |
| J.P. Morgan Chase & Co. | 2,350,000 | 2.90% |
| Other Institutions | 11,000,000 | 13.60% |
Recent trends indicate that institutional investors have shown varying levels of interest in FHI. Specifically, the data shows:
- Vanguard increased its stake by 150,000 shares in the last quarter.
- BlackRock slightly decreased its holdings by 50,000 shares.
- State Street has maintained its position without significant changes.
- Wellington Management increased its stake by 200,000 shares.
- FMR LLC has decreased its holdings by 100,000 shares.
Institutional investors play a crucial role in shaping the stock price and strategic direction of Federated Hermes, Inc. Their influence is reflected in several key areas:
- The presence of large institutional shareholders often stabilizes the stock price, as their long-term investment strategies can mitigate volatility.
- Institutional ownership can enhance credibility in the market, signaling confidence in the company's future performance.
- These investors may influence corporate governance and strategic decisions, as they typically have significant voting power during shareholder meetings.
As of September 30, 2024, Federated Hermes reported a total of 78,690,376 shares outstanding, with institutional investors holding approximately 54.3% of the total shares.
In summary, the institutional ownership landscape of Federated Hermes, Inc. is characterized by a blend of increasing and decreasing stakes among major investors, highlighting the dynamic nature of institutional interest in the company.
Key Investors and Their Influence on Federated Hermes, Inc. (FHI)
Key Investors and Their Impact on Federated Hermes, Inc. (FHI)
Federated Hermes, Inc. has attracted a diverse group of investors, including institutional investors, mutual funds, and individual shareholders. These investors play a crucial role in shaping the company's strategic decisions and overall market perception.
Notable Investors
Key institutional investors include:
- The Vanguard Group, Inc. - Holds approximately 8.5% of total shares outstanding.
- BlackRock, Inc. - Owns about 7.9% of total shares.
- State Street Corporation - Holds nearly 5.2% of the company’s total shares.
Investor Influence
These institutional investors significantly influence company decisions, primarily through voting rights and engagement with management. Their large stakes often lead to a focus on long-term growth strategies, as they seek to maximize shareholder value. For example, major investors have pushed for enhanced transparency in reporting and governance practices.
Recent Moves
Recent notable moves include:
- In October 2023, the board authorized a share repurchase program allowing the repurchase of up to 5.0 million shares of Class B common stock.
- During the nine months ended September 30, 2024, Federated Hermes repurchased approximately 3.5 million shares for $111.5 million.
- As of September 30, 2024, liquid assets totaled $631.1 million, a decrease from $656.4 million at the end of 2023.
Shareholder Structure
| Investor | Ownership (%) | Shares Held |
|---|---|---|
| The Vanguard Group, Inc. | 8.5% | Approximately 6.9 million |
| BlackRock, Inc. | 7.9% | Approximately 6.5 million |
| State Street Corporation | 5.2% | Approximately 4.3 million |
| Other Institutional Investors | Approximately 20% | Approximately 16.5 million |
| Retail Investors | Approximately 58% | Approximately 48 million |
As of September 30, 2024, the company reported a total of $800.5 billion in managed assets. The diverse investor base, comprising institutional and retail investors, ensures a balanced approach to governance and strategic planning.
Recent financial performance shows that net income attributable to Federated Hermes for the three-month period ended September 30, 2024, was $87.5 million, up from $75.0 million in the same period in 2023. This reflects the positive impact of strategic investor engagement and operational efficiencies on financial results.
Market Impact and Investor Sentiment of Federated Hermes, Inc. (FHI)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the current sentiment among major shareholders is generally positive. This is indicated by a significant increase in stock repurchases and a favorable outlook from institutional investors.
Recent Market Reactions: The stock market has responded favorably to recent changes in ownership. In the nine months ended September 30, 2024, approximately 3.5 million shares of Class B common stock were repurchased for $111.5 million, reflecting strong investor confidence in the company's future prospects.
Analyst Perspectives: Analysts have expressed a positive outlook on the company, particularly in light of its strategic initiatives aimed at enhancing operational efficiency. The average price target set by analysts is around $34.50, indicating an upside potential from current trading levels.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income | $87.5 million | $75.0 million | 16.7% |
| Earnings Per Share (EPS) | $1.06 | $0.86 | 23.3% |
| Cash Dividends per Share | $0.31 | $0.28 | 10.7% |
| Shares Outstanding | 81.8 million | 86.2 million | -5.1% |
Furthermore, the company's liquid assets totaled $631.1 million as of September 30, 2024, showcasing its robust financial position. Analysts have noted that the company's ability to generate cash from operations has increased, with cash provided by operating activities rising to $219.9 million for the first nine months of 2024, compared to $182.2 million in the same period of 2023.
Overall, institutional investor sentiment remains strong, with the majority of shareholders expressing confidence in the company's strategic direction and financial health. Enhanced operational efficiencies and a focus on core investment strategies are expected to further bolster investor confidence moving forward.
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Article updated on 8 Nov 2024
Resources:
- Federated Hermes, Inc. (FHI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Federated Hermes, Inc. (FHI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Federated Hermes, Inc. (FHI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.