Federated Investors, Inc. (NYSE:FII) Cut to “Hold” at Zacks Investment Research
Federated Investors, Inc. (NYSE:FII) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday.
According to Zacks, “Federated’s shares underperformed the Zacks categorized Investment Management industry over the last three months. Escalating expenses continue to affect the financials. Also, strict regulations for investment management companies remain a headwind. However, 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.”
FII has been the subject of a number of other research reports. J P Morgan Chase & Co raised Federated Investors from an “underweight” rating to a “neutral” rating and set a $24.00 price target for the company in a research note on Thursday, May 25th. Royal Bank Of Canada assumed coverage on Federated Investors in a research note on Thursday, June 29th. They issued a “sector perform” rating and a $27.00 price target for the company. Jefferies Group LLC raised Federated Investors from an “underperform” rating to a “hold” rating and set a $11.00 price target for the company in a research note on Friday, March 24th. Keefe, Bruyette & Woods reaffirmed a “sell” rating and issued a $26.00 price target on shares of Federated Investors in a research note on Thursday, June 1st. Finally, BidaskClub raised Federated Investors from a “hold” rating to a “buy” rating in a research note on Wednesday. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating and one has issued a buy rating to the stock. The stock has a consensus rating of “Hold” and an average price target of $24.43.
Federated Investors (NYSE:FII) traded up 0.59% during midday trading on Thursday, hitting $28.93. 236,949 shares of the stock traded hands. Federated Investors has a 12-month low of $24.52 and a 12-month high of $33.13. The stock has a market capitalization of $2.83 billion, a PE ratio of 13.90 and a beta of 1.41. The firm’s 50 day moving average is $26.78 and its 200-day moving average is $26.85.
Federated Investors (NYSE:FII) last posted its quarterly earnings results on Thursday, April 27th. The asset manager reported $0.49 EPS for the quarter, beating the Zacks’ consensus estimate of $0.47 by $0.02. The business had revenue of $273.50 million during the quarter, compared to the consensus estimate of $290.19 million. Federated Investors had a return on equity of 33.32% and a net margin of 18.62%. Federated Investors’s revenue for the quarter was up .5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.44 earnings per share. On average, analysts anticipate that Federated Investors will post $2.00 EPS for the current fiscal year.
In other Federated Investors news, insider Richard A. Novak sold 2,700 shares of Federated Investors stock in a transaction dated Friday, June 23rd. The stock was sold at an average price of $27.70, for a total value of $74,790.00. Following the transaction, the insider now owns 44,741 shares in the company, valued at $1,239,325.70. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 7.10% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Russell Investments Group Ltd. acquired a new position in Federated Investors during the fourth quarter worth about $783,000. Envestnet Asset Management Inc. boosted its position in Federated Investors by 7.2% in the fourth quarter. Envestnet Asset Management Inc. now owns 19,063 shares of the asset manager’s stock worth $538,000 after buying an additional 1,285 shares in the last quarter. Guggenheim Capital LLC boosted its position in Federated Investors by 150.6% in the fourth quarter. Guggenheim Capital LLC now owns 115,887 shares of the asset manager’s stock worth $3,277,000 after buying an additional 69,645 shares in the last quarter. AQR Capital Management LLC boosted its position in Federated Investors by 311.9% in the fourth quarter. AQR Capital Management LLC now owns 207,428 shares of the asset manager’s stock worth $5,866,000 after buying an additional 157,074 shares in the last quarter. Finally, Ladenburg Thalmann Financial Services Inc. boosted its position in Federated Investors by 16.6% in the fourth quarter. Ladenburg Thalmann Financial Services Inc. now owns 6,971 shares of the asset manager’s stock worth $198,000 after buying an additional 993 shares in the last quarter. Hedge funds and other institutional investors own 84.95% of the company’s stock.
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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