Pacer Advisors Raises Federated Hermes Stake 363%; Q3 EPS Tops Estimates
Pacer Advisors increased its holdings in Federated Hermes by 363.2% to 17,444 shares valued at $906,000 during Q3. Federated Hermes reported third-quarter EPS of $1.34 beating estimates by $0.23, with revenue rising 14.9% year-over-year to $469.45 million.
1. Pacer Advisors Significantly Raises Federated Hermes Holding
In the third quarter, Pacer Advisors Inc. increased its stake in Federated Hermes by 363.2%, adding 13,678 shares to reach a total holding of 17,444 shares valued at approximately $906,000. Several other institutions also adjusted their positions: Diversified Trust Co raised its stake by 2.6% to 9,036 shares (worth $400,000), GAMMA Investing LLC added 241 shares for a 10.6% increase to 2,524 shares ($131,000), Northwestern Mutual Wealth Management Co. lifted its holding by 22.7% to 1,551 shares ($63,000), Exchange Traded Concepts LLC grew by 1.9% to 20,712 shares ($918,000), and RHS Financial LLC increased by 4.8% to 9,321 shares ($413,000). Institutional investors now own 75.94% of Federated Hermes stock.
2. Insider Sales Trim Executive Positions
During the past quarter, insiders sold a total of 21,709 shares of Federated Hermes stock valued at $1,049,146. On November 19th, President Richard A. Novak disposed of 1,249 shares for proceeds of $59,764.65, reducing his ownership to 57,500 shares (a 2.13% decrease). Vice President Dolores D. Dudiak sold 999 shares for $47,822.13, lowering her position to 88,223 shares (a 1.12% decrease). Overall, corporate insiders now hold 3.80% of the company’s shares.
3. Analyst Ratings and Q3 Earnings Beat Expectations
Federated Hermes outperformed estimates in its most recent quarter, reporting earnings per share of $1.34 versus consensus of $1.11, and revenue of $469.45 million compared with expectations of $442.67 million—a 14.9% year-over-year increase. The firm delivered a return on equity of 33.03% and a net margin of 21.86%. Analysts have varied in their outlook: Wall Street Zen downgraded its rating from "strong-buy" to "buy", Weiss Ratings reaffirmed a "buy (b)" rating, Zacks Research cut its recommendation from "strong-buy" to "hold", TD Cowen raised its target from $51.00 to $53.00 and maintained a "buy" rating, while Cowen reiterated a "hold" rating. In total, three analysts rate the shares a Buy and six rate them a Hold, with an average price target of $49.67. The company also declared a quarterly dividend of $0.34 per share, representing an annualized payout of $1.36 and a yield of 2.6%, with a payout ratio of 28.39%.