Zacks Investment Research Lowers Federated Investors, Inc. (FII) to Hold
Zacks Investment Research cut shares of Federated Investors, Inc. (NYSE:FII) from a buy rating to a hold rating in a report issued on Monday.
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.”
Other equities analysts have also issued reports about the stock. Royal Bank Of Canada set a $28.00 price objective on shares of Federated Investors and gave the company a hold rating in a research report on Friday, July 28th. Keefe, Bruyette & Woods restated a sell rating and issued a $28.00 price objective on shares of Federated Investors in a research report on Friday, July 14th. BidaskClub upgraded shares of Federated Investors from a strong sell rating to a sell rating in a research report on Saturday, June 10th. Citigroup Inc. lowered shares of Federated Investors from a neutral rating to a sell rating and cut their price objective for the company from $26.00 to $24.00 in a research report on Monday, June 5th. Finally, Credit Suisse Group cut their price objective on shares of Federated Investors from $29.00 to $27.00 and set a neutral rating for the company in a research report on Friday, August 11th. Three equities research analysts have rated the stock with a sell rating and six have issued a hold rating to the company. Federated Investors presently has an average rating of Hold and an average price target of $24.43.
Shares of Federated Investors (NYSE FII) opened at 28.60 on Monday. Federated Investors has a one year low of $24.52 and a one year high of $32.40. The stock’s 50 day moving average is $27.29 and its 200-day moving average is $27.11. The company has a market cap of $2.79 billion, a P/E ratio of 13.62 and a beta of 1.42.
Federated Investors (NYSE:FII) last posted its earnings results on Thursday, July 27th. The asset manager reported $0.53 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.03. Federated Investors had a net margin of 18.91% and a return on equity of 33.93%. The firm had revenue of $272.80 million during the quarter, compared to the consensus estimate of $278.51 million. During the same quarter last year, the company earned $0.51 earnings per share. The company’s revenue was down 4.8% on a year-over-year basis. Equities research analysts forecast that Federated Investors will post $2.06 earnings per share for the current year.
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In other news, insider Richard A. Novak sold 2,700 shares of the business’s stock in a transaction that occurred on Friday, June 23rd. The shares were sold at an average price of $27.70, for a total value of $74,790.00. Following the completion of the sale, the insider now directly owns 44,741 shares in the company, valued at approximately $1,239,325.70. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP John B. Fisher sold 5,041 shares of the business’s stock in a transaction that occurred on Wednesday, August 2nd. The stock was sold at an average price of $27.97, for a total transaction of $140,996.77. Following the completion of the sale, the vice president now owns 514,905 shares of the company’s stock, valued at $14,401,892.85. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 8,002 shares of company stock valued at $223,095. Company insiders own 7.10% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in the company. State Treasurer State of Michigan lifted its holdings in shares of Federated Investors by 0.3% in the 1st quarter. State Treasurer State of Michigan now owns 37,600 shares of the asset manager’s stock worth $990,000 after acquiring an additional 100 shares during the last quarter. Camelot Portfolios LLC lifted its holdings in shares of Federated Investors by 0.5% in the 2nd quarter. Camelot Portfolios LLC now owns 24,859 shares of the asset manager’s stock worth $702,000 after acquiring an additional 119 shares during the last quarter. Lowe Brockenbrough & Co. Inc. lifted its holdings in shares of Federated Investors by 0.8% in the 2nd quarter. Lowe Brockenbrough & Co. Inc. now owns 18,000 shares of the asset manager’s stock worth $508,000 after acquiring an additional 150 shares during the last quarter. Suntrust Banks Inc. lifted its holdings in shares of Federated Investors by 2.4% in the 2nd quarter. Suntrust Banks Inc. now owns 11,374 shares of the asset manager’s stock worth $321,000 after acquiring an additional 269 shares during the last quarter. Finally, Northwest Investment Counselors LLC lifted its holdings in shares of Federated Investors by 0.5% in the 2nd quarter. Northwest Investment Counselors LLC now owns 58,727 shares of the asset manager’s stock worth $1,659,000 after acquiring an additional 287 shares during the last quarter. Hedge funds and other institutional investors own 82.88% 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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