Zacks Investment Research downgraded shares of Federated Investors, Inc. (NYSE:FII) from a buy rating to a hold rating in a research note released on Wednesday.
According to Zacks, “Shares of Federated have underperformed the industry over the last six months. Yet, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. Rise in interest rates and lower fee waivers are expected to aid top-line performance, moving ahead. Also, Federated’s inorganic growth strategies encourage us. Further, the company’s active involvement in capital deployment activities continues to inspire investors’ confidence. However, mounting expenses are a major concern. Also, strict regulations for investment management companies remain a headwind.”
Several other equities analysts have also issued reports on FII. BidaskClub lowered Federated Investors from a sell rating to a strong sell rating in a report on Monday, August 14th. Keefe, Bruyette & Woods reaffirmed a sell rating and set a $28.00 price objective on shares of Federated Investors in a report on Friday, July 14th. Credit Suisse Group dropped their price objective on Federated Investors from $29.00 to $27.00 and set a neutral rating on the stock in a report on Friday, August 11th. Finally, Royal Bank Of Canada set a $28.00 price objective on Federated Investors and gave the stock a hold rating in a report on Friday, July 28th. Three research analysts have rated the stock with a sell rating and six have given a hold rating to the stock. The company has a consensus rating of Hold and a consensus target price of $24.86.
Shares of Federated Investors (NYSE FII) traded up 0.70% during mid-day trading on Wednesday, reaching $30.31. The company’s stock had a trading volume of 425,796 shares. The stock has a market capitalization of $2.96 billion, a price-to-earnings ratio of 14.43 and a beta of 1.45. The company’s 50-day moving average is $27.88 and its 200-day moving average is $27.34. Federated Investors has a 52 week low of $24.52 and a 52 week high of $30.49.
Federated Investors (NYSE:FII) last issued its quarterly earnings data on Thursday, July 27th. The asset manager reported $0.53 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.03. The company had revenue of $272.80 million for the quarter, compared to analyst estimates of $278.51 million. Federated Investors had a return on equity of 33.93% and a net margin of 18.91%. The business’s quarterly revenue was down 4.8% compared to the same quarter last year. During the same quarter last year, the company posted $0.51 earnings per share. Equities analysts predict that Federated Investors will post $2.06 EPS for the current year.
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In related news, VP John B. Fisher sold 5,041 shares of the firm’s stock in a transaction dated Wednesday, August 2nd. The stock was sold at an average price of $27.97, for a total transaction of $140,996.77. Following the transaction, the vice president now owns 514,905 shares of the company’s stock, valued at $14,401,892.85. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 7.10% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. grew its holdings in shares of Federated Investors by 15,254.4% during the first quarter. BlackRock Inc. now owns 9,951,364 shares of the asset manager’s stock worth $262,118,000 after buying an additional 9,886,553 shares during the last quarter. FMR LLC grew its holdings in shares of Federated Investors by 3.5% during the second quarter. FMR LLC now owns 9,096,091 shares of the asset manager’s stock worth $256,965,000 after buying an additional 304,322 shares during the last quarter. Vanguard Group Inc. grew its holdings in shares of Federated Investors by 1.7% during the first quarter. Vanguard Group Inc. now owns 8,094,838 shares of the asset manager’s stock worth $213,218,000 after buying an additional 135,042 shares during the last quarter. Great West Life Assurance Co. Can grew its holdings in shares of Federated Investors by 2.5% during the second quarter. Great West Life Assurance Co. Can now owns 3,559,839 shares of the asset manager’s stock worth $100,345,000 after buying an additional 86,778 shares during the last quarter. Finally, State Street Corp grew its holdings in shares of Federated Investors by 2.1% during the second quarter. State Street Corp now owns 2,723,154 shares of the asset manager’s stock worth $76,930,000 after buying an additional 56,121 shares during the last quarter. 82.88% of the stock is currently owned by hedge funds and other institutional investors.
About Federated Investors
Federated Investors, Inc (Federated) is a provider of investment management products and related financial services. Federated operates through investment management business segment. It is engaged in sponsoring, marketing and providing investment-related services to various investment products, including mutual funds and Separate Accounts, which include separately managed accounts, institutional accounts, sub-advised funds and other managed products.
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