Federated Investors, Inc. (NYSE:FII) Lowered 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, July 13th.
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.”
Other equities research analysts have also issued reports about the company. Royal Bank Of Canada assumed coverage on Federated Investors in a research note on Thursday, June 29th. They set a “sector perform” rating and a $27.00 price objective for the company. J P Morgan Chase & Co raised Federated Investors from an “underweight” rating to a “neutral” rating and set a $24.00 price objective for the company in a research note on Thursday, May 25th. Keefe, Bruyette & Woods reissued a “hold” rating on shares of Federated Investors in a research note on Tuesday, April 4th. Jefferies Group LLC raised Federated Investors from an “underperform” rating to a “hold” rating and set a $11.00 price objective for the company in a research note on Friday, March 24th. Finally, ValuEngine lowered Federated Investors from a “buy” rating to a “hold” rating in a research note on Friday, June 2nd. Three equities research analysts have rated the stock with a sell rating and six have given a hold rating to the stock. The stock currently has a consensus rating of “Hold” and an average price target of $24.71.
Shares of Federated Investors (NYSE FII) opened at 27.87 on Thursday. Federated Investors has a 52-week low of $24.52 and a 52-week high of $33.13. The firm’s 50-day moving average price is $28.51 and its 200-day moving average price is $26.99. The stock has a market capitalization of $2.72 billion, a P/E ratio of 13.27 and a beta of 1.42.
Federated Investors (NYSE:FII) last issued its quarterly earnings results on Thursday, July 27th. The asset manager reported $0.53 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.50 by $0.03. The firm had revenue of $272.80 million during 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 firm’s quarterly revenue was down 4.8% on a year-over-year basis. During the same period last year, the company posted $0.51 EPS. Equities analysts forecast that Federated Investors will post $2.06 earnings per share for the current fiscal year.
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In related news, insider Richard A. Novak sold 2,700 shares of the stock in a transaction on Friday, June 23rd. The stock was sold at an average price of $27.70, for a total transaction of $74,790.00. Following the completion of the sale, the insider now directly owns 44,741 shares in the company, valued at $1,239,325.70. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, VP John B. Fisher sold 5,041 shares of the firm’s stock in a transaction dated Wednesday, August 2nd. The shares were sold at an average price of $27.97, for a total value of $140,996.77. Following the transaction, the vice president now owns 514,905 shares in the company, valued at $14,401,892.85. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 8,875 shares of company stock valued at $246,998. 7.10% of the stock is owned by corporate insiders.
A number of institutional investors have recently bought and sold shares of the stock. Russell Investments Group Ltd. bought a new position in Federated Investors during the fourth quarter valued at $783,000. Envestnet Asset Management Inc. raised 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 valued at $538,000 after buying an additional 1,285 shares during the period. Guggenheim Capital LLC raised 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 valued at $3,277,000 after buying an additional 69,645 shares during the period. AQR Capital Management LLC raised 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 valued at $5,866,000 after buying an additional 157,074 shares during the period. Finally, Ladenburg Thalmann Financial Services Inc. raised 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 valued at $198,000 after buying an additional 993 shares during the period. Institutional investors own 85.54% 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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