Pacer Advisors boosts Federated Hermes stake 363% to $906K; firm tops peer metrics
Pacer Advisors increased its stake in Federated Hermes by 363.2% in Q3, adding 13,678 shares to reach 17,444 shares valued at $906,000 at quarter-end. In a head-to-head analysis, Federated Hermes outperforms Binah Capital on 12 of 14 metrics, with a 21.86% net margin, 10.94 P/E and 75.9% institutional ownership.
1. Institutional Buying Surge
In the third quarter, Pacer Advisors Inc. increased its stake in Federated Hermes by 363.2%, acquiring an additional 13,678 shares to bring its total holding to 17,444 shares valued at approximately $906,000. This substantial accumulation underscores growing confidence among asset managers, raising the firm’s ownership to a meaningful position. Other institutional investors also adjusted their exposure: Diversified Trust Co. added 229 shares (2.6% increase), GAMMA Investing LLC purchased 241 shares (10.6% increase), Northwestern Mutual Wealth Management Co. bought 287 shares (22.7% increase), Exchange Traded Concepts LLC acquired 396 shares (1.9% increase), and RHS Financial LLC added 423 shares (4.8% increase). Together, institutions now control 75.94% of Federated Hermes’s outstanding shares.
2. Insider Transactions
Two senior executives reduced their holdings on November 19. Richard A. Novak disposed of 1,249 shares for proceeds totaling $59,765, trimming his stake by 2.13% to 57,500 shares. Vice President Dolores D. Dudiak sold 999 shares for $47,822, representing a 1.12% reduction to hold 88,223 shares. Over the past three months, insiders have collectively sold 21,709 shares for proceeds of $1,049,146, leaving them with 3.80% of the company’s equity.
3. Analyst Ratings Landscape
Federated Hermes has been the subject of eight recent research notes. Three analysts maintain Buy recommendations, while six endorse Hold. Notable revisions include a downgrade from "strong-buy" to Buy by Wall Street Zen and a downgrade to Hold by Zacks Research. TD Cowen reaffirmed a Buy rating and raised its earnings estimate for the coming year. The consensus sentiment is a Hold, reflecting balanced views on the firm’s growth prospects and valuation metrics.
4. Quarterly Earnings Performance
In its latest quarter, Federated Hermes reported earnings per share of $1.34, surpassing consensus estimates by $0.23. Quarterly revenue reached $469.45 million, a 14.9% increase year-over-year and $26.8 million above analyst projections. Return on equity stood at 33.03% and net margin at 21.86%, highlighting continued operational efficiency. The firm’s quick ratio of 2.58 and debt-to-equity ratio of 0.29 indicate strong liquidity and conservative leverage as it positions for further asset-gathering opportunities.