Zacks Investment Research upgraded shares of Federated Investors (NYSE:FII) from a sell rating to a hold rating in a research note released on Thursday morning.
According to Zacks, “Shares of Federated have outperformed the industry over the past six months. While earnings estimates for the to-be-reported quarter have not seen any revision lately, the company possesses an impressive earnings surprise history, beating the Zacks Consensus Estimate in each of the trailing four quarters. Federated’s top-line continues to get support from the rise in interest rates and increasing AUM. Also, its efforts to expand through acquisitions are encouraging. However, consistently rising expenses due to strict compliance measures remains a major concern. Also, significant dependence on investment advisory fees as a source of revenue keeps us apprehensive.”
FII has been the subject of a number of other research reports. Royal Bank of Canada lifted their price objective on shares of Federated Investors to $37.00 and gave the company a sector perform rating in a report on Monday, January 29th. Deutsche Bank dropped their price objective on shares of Federated Investors from $34.00 to $32.00 and set a hold rating for the company in a report on Tuesday, March 6th. Citigroup upgraded shares of Federated Investors from a sell rating to a neutral rating in a report on Monday, March 5th. Jefferies Group restated a hold rating and issued a $32.00 price objective on shares of Federated Investors in a report on Wednesday. Finally, JPMorgan Chase cut shares of Federated Investors from a neutral rating to an underweight rating and set a $31.00 price objective for the company. in a report on Monday, January 8th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has issued a buy rating to the company. Federated Investors currently has a consensus rating of Hold and a consensus price target of $32.13.
Federated Investors (NYSE:FII) last announced its quarterly earnings data on Thursday, January 25th. The asset manager reported $0.61 earnings per share for the quarter, beating analysts’ consensus estimates of $0.58 by $0.03. The firm had revenue of $278.31 million during the quarter, compared to analysts’ expectations of $283.45 million. Federated Investors had a net margin of 26.42% and a return on equity of 33.23%. The business’s quarterly revenue was down 4.0% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.52 earnings per share. sell-side analysts expect that Federated Investors will post 2.73 earnings per share for the current fiscal year.
In related news, EVP Peter J. Germain sold 1,294 shares of Federated Investors stock in a transaction that occurred on Wednesday, March 7th. The shares were sold at an average price of $34.27, for a total value of $44,345.38. Following the completion of the transaction, the executive vice president now owns 75,473 shares in the company, valued at $2,586,459.71. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Gordon J. Ceresino sold 4,487 shares of Federated Investors stock in a transaction that occurred on Wednesday, March 7th. The stock was sold at an average price of $34.20, for a total transaction of $153,455.40. Following the completion of the transaction, the director now owns 194,221 shares of the company’s stock, valued at approximately $6,642,358.20. The disclosure for this sale can be found here. Insiders sold 17,803 shares of company stock valued at $608,486 in the last quarter. 5.30% of the stock is owned by insiders.
A number of institutional investors have recently modified their holdings of FII. Bremer Trust National Association purchased a new stake in shares of Federated Investors during the 4th quarter worth approximately $209,000. First Allied Advisory Services Inc. purchased a new stake in shares of Federated Investors during the 4th quarter worth approximately $213,000. Raymond James Financial Services Advisors Inc. purchased a new stake in shares of Federated Investors during the 4th quarter worth approximately $215,000. FinTrust Investment Advisory Services LLC purchased a new stake in shares of Federated Investors during the 4th quarter worth approximately $216,000. Finally, Zurcher Kantonalbank Zurich Cantonalbank lifted its position in shares of Federated Investors by 34.4% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,025 shares of the asset manager’s stock worth $217,000 after buying an additional 1,541 shares during the last quarter. Institutional investors own 85.18% of the company’s stock.
About Federated Investors
Federated Investors, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.
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