On November 19, Germain Peter J, Executive Vice President, Chief Legal Officer, and Secretary of Federated Hermes, Inc. (NYSE:FHI (TSX:FHI)), sold 4,922 shares of Class B Common Stock. The shares were sold at a weighted average price of $41.3614, generating approximately $203,580. This transaction was part of a sale to cover tax obligations from the vesting of restricted shares.
Earlier, on November 18, Germain acquired 18,500 shares of Class B Common Stock at $3 per share, totaling $55,500. After these transactions, Germain's direct holdings in Federated Hermes amounted to 211,731 shares.
In other recent news, Federated Investors reported a mixed financial performance in its third-quarter earnings call. The company achieved a record $800 billion in assets under management (AUM), driven by significant contributions from money market and fixed income assets. Despite some redemptions in equity assets, Federated Investors launched new products and saw growth in its alternative private markets. The company's total revenue for the third quarter slightly increased, and operating expenses decreased due to non-recurring charges.
Among the recent developments, Federated Investors announced a new share repurchase program and anticipates further growth in industry assets. The company's outlook suggests institutional flows are expected to increase with further Federal rate cuts. However, it also faced net redemptions of $1.4 billion in equity assets and a $700 million decline in AUM within the alternatives sector.
Analysts from various firms have provided their projections, including an expected growth in alternative funds and a projected tax rate for Q4 2025 between 26% and 28%. These are recent developments that investors may find noteworthy.
InvestingPro Insights
Federated Hermes, Inc. (NYSE:FHI) has been demonstrating 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 insider transaction reported, potentially indicating management's confidence in the company's valuation.
InvestingPro Tips highlight that FHI has maintained dividend payments for 27 consecutive years, showcasing its commitment to shareholder returns. The current dividend yield stands at 3.0%, with a notable dividend growth of 10.71% over the last twelve months. This consistent dividend policy may be attractive to income-focused investors.
Furthermore, FHI's financial health appears solid, with InvestingPro data showing that liquid assets exceed short-term obligations. This strong liquidity position supports the company's ability to meet its financial commitments and potentially fund future growth initiatives.
For investors seeking a deeper understanding of Federated Hermes' financial outlook, InvestingPro offers 11 additional tips, providing a comprehensive analysis of the company's prospects and potential risks.
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