# Federated Hermes, Inc. (FHI)

> Source: Nexqual · https://nexqual.com/FHI · data as of 2026-10-22 20:00 UTC · cite as "Nexqual, Federated Hermes, Inc. (FHI), nexqual.com/FHI" · informational, not investment advice.

**Price:** USD 57.67 (+2.85% on the day) · last close of Oct 22, 2026; US market pre market, not a live price. Prev close 56.07 · day 56–57.81 · 52w 46.66–67.2 · market cap $4.31B · NYQ

## Key facts
- Last four reported quarters (through Jun 30, 2026): revenue $1.93B, net income $412M (21.3% margin), free cash flow $367M (SEC filings).
- Valuation: P/E 10.5x (avg 10.5x at the last 3 fiscal year-ends), net debt $46.8M.
- Insider open-market sales, last ~7 months: 9 Form 4 filings, $2.3M; 9 not under a Rule 10b5-1 plan ($2.3M); 0 by opportunistic insiders, 8 by routine insiders (three-year test, Cohen, Malloy & Pomorski 2012).
- Analysts: Hold (mean 3.13 on a 1–5 scale) (8 analysts), mean target USD 58.86 (range 54–63).
- Total return with dividends: 1Y +17.9% vs S&P 500 +14.9%; 5Y +109.7% vs S&P 500 +80.3%.
- Next earnings: 2026-10-29, EPS estimate USD 1.44, revenue estimate $504M.

## Financials (SEC 10-K; TTM = last four 10-Q/10-K quarters)
| USD | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 | TTM |
|---|---|---|---|---|---|---|
| Revenue | $1.30B | $1.45B | $1.61B | $1.63B | $1.80B | $1.93B |
| Operating income | $366M | $337M | $388M | $361M | $514M | $524M |
| Net income | $270M | $239M | $299M | $268M | $403M | $412M |
| EPS (diluted) | $2.75 | $2.65 | $3.40 | $3.23 | $5.13 | — |
| Free cash flow | $160M | $320M | $304M | $343M | $295M | $367M |
| Operating margin | 28.2% | 23.3% | 24.1% | 22.1% | 28.5% | 27.1% |
| Net margin | 20.8% | 16.6% | 18.6% | 16.4% | 22.4% | 21.3% |
| Revenue growth | -10.2% | +11.2% | +11.3% | +1.4% | +10.3% | — |
| Cash + short-term investments | $233M | $337M | $383M | $504M | $583M | — |
| Total debt | $223M | $348M | $348M | $348M | $348M | — |
Fiscal years end Dec. EPS is split-adjusted.

## Valuation (price ÷ last four quarters, through Jun 30, 2026)
P/E 10.5x · P/S 2.2x · EV/Sales 2.3x · P/FCF 11.7x · P/B 3.4x · FCF yield 8.52% · Earnings yield 9.57% · Dividend yield (paid, TTM) 2.50% · Buyback yield (TTM) 4.78% · Net debt $46.8M · EV $4.35B
P/E at fiscal year-ends: Dec 2025 9.7x, Dec 2024 12.2x, Dec 2023 9.5x.

## Insider sales (SEC Form 4, open-market, last ~7 months)
0 of 9 under a Rule 10b5-1 trading plan (scheduled in advance). Unplanned sales were timed by the insider.
| Trade date | Insider | Role | Shares | Value | % of holdings sold | 10b5-1 plan | Insider type |
|---|---|---|---|---|---|---|---|
| 2026-08-20 | Germain Peter J | EVP, CLO & Sec. | 5,000 | $316K | 2.4% | No | Routine (sold in May & Nov each year 2023–2025; this trade is outside those months) |
| 2026-08-04 | Nusseibeh Saker Anwar | CEO, Federated Hermes Limited | 7,030 | $452K | 4.6% | No | Routine (sold in Mar & Nov each year 2023–2025; this trade is outside those months) |
| 2026-06-23 | Van Meter Stephen | VP, Chief Compliance Officer | 1,682 | $100K | 5.1% | No | Routine (sold in Mar & Aug & Nov each year 2023–2025; this trade is outside those months) |
| 2026-06-16 | Uhlman Paul A | Vice President | 6,145 | $361K | 2% | No | Routine (sold in Mar & May & Jun & Nov each year 2023–2025) |
| 2026-06-08 | Nusseibeh Saker Anwar | CEO, Federated Hermes Limited | 8,950 | $513K | 5.6% | No | Routine (sold in Mar & Nov each year 2023–2025; this trade is outside those months) |
| 2026-05-26 | Uhlman Paul A | Vice President | 1,021 | $56K | 0.3% | No | Routine (sold in Mar & May & Jun & Nov each year 2023–2025) |
| 2026-05-26 | Germain Peter J | EVP, CLO & Sec. | 409 | $23K | 0.2% | No | Routine (sold in May & Nov each year 2023–2025) |
| 2026-05-15 | Germain Peter J | EVP, CLO & Sec. | 5,000 | $271K | 2.3% | No | Routine (sold in May & Nov each year 2023–2025) |
| 2026-05-07 | Burke Bryan M | Vice President | 4,000 | $217K | 4.5% | No | Too little history (no open-market trades in 2023–2025) |
% of holdings sold = shares sold ÷ (shares sold + all holdings the insider reported on that Form 4, direct and through trusts).
Insider type follows Cohen, Malloy & Pomorski (Journal of Finance, 2012). An insider who traded the stock in the same calendar month in each of the past three years is a routine trader; one who traded in each of those years without such a pattern is an opportunistic trader. In their study, trades by opportunistic insiders predicted future returns and trades by routine insiders did not. Counts open-market purchases and sales only (SEC Form 4 codes P and S) by that insider in that company. Not investment advice.

## Analysts
Consensus Hold (mean 3.13 on a 1–5 scale), 8 analysts; mean target USD 58.86 (low 54, high 63).
Rating changes, last 120 days:
| Date | Firm | Action | Rating | Price target |
|---|---|---|---|---|
| 2026-10-12 | TD Cowen | Target lowered | Hold | $60 → $56 |
| 2026-10-09 | Evercore ISI Group | Target lowered | Outperform | $64 → $59 |
| 2026-09-09 | Evercore ISI Group | Target lowered | Outperform | $65 → $64 |
| 2026-08-10 | Evercore ISI Group | Target raised | Outperform | $62 → $65 |
| 2026-08-03 | Evercore ISI Group | Target raised | Outperform | $59 → $62 |
| 2026-07-02 | RBC Capital | Target raised | Sector Perform | $54 → $57 |

## Total return (dividends reinvested)
|  | 1Y (from 2025-10-23) | 5Y (from 2021-10-18) |
|---|---|---|
| Total return | +17.9% | +109.7% |
| S&P 500 (SPY) | +14.9% | +80.3% |
| Per year | +18.0% | +15.9% |
| Volatility (annualized) | 24.8% | 23.2% |
| Max drawdown | -16.0% (Aug 2026→Oct 2026) | -26.7% (Jan 2022→Apr 2022) |

## Peers (Asset Management)
BXSL (Blackstone Secured Lending Fund) USD 23.91 +2.31% · VCTR (Victory Capital Holdings, Inc. ) USD 107.39 -0.20% · PDI (PIMCO Dynamic Income Fund) USD 14.3 +1.20% · AMG (Affiliated Managers Group, Inc.) USD 395.53 +0.48% · SEIC (SEI Investments Company) USD 104.5 -3.62% · IVZ (Invesco Ltd) USD 28.79 -1.57%

## More
Full page: https://nexqual.com/FHI · Free keyless MCP server with the same data and citations: https://mcp.nexqual.com/mcp · Guide for agents: https://nexqual.com/agents · https://nexqual.com/llms.txt

## Revenue by product line (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| Federated Hermes Funds | $424.3M | 84.4% | +18.7% |
| Separate Accounts | $69.8M | 13.9% | +12.4% |
| Other | $8.7M | 1.7% | +64.5% |
| Total revenue | $502.8M | 100% | — |

## Revenue by region (quarter ended 2026-06-30)

| Line | Revenue | Share | YoY |
|---|---|---|---|
| UNITED STATES | $441.3M | 87.8% | +19.1% |
| Non-US | $61.4M | 12.2% | +12.9% |
| Total revenue | $502.8M | 100% | — |

## Customer concentration

Period ended 2026-06-30: 10% of revenue from unnamed direct customers (10-Q, filed 2026-07-31).

## Company outlook (8-K filed 2026-07-30)

- "As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future."

## Analyst estimates and revisions

| Period | EPS est. | 90d ago | Change | Revenue est. | Analysts |
|---|---|---|---|---|---|
| Current quarter (ends 2026-09-30) | $1.44 | $1.35 | +6.5% | $504.0M | 4 |
| Next quarter (ends 2026-12-31) | $1.43 | $1.40 | +2.1% | $507.0M | 4 |
| Current fiscal year (ends 2026-12-31) | $5.60 | $5.26 | +6.5% | $1.99B | 5 |
| Next fiscal year (ends 2027-12-31) | $5.96 | $5.80 | +2.7% | $2.06B | 5 |

## Options: expected move (Cboe, 15-min delayed)

Expected move by 2026-11-20 (includes earnings 2026-10-29): ±10.7%; last 8 reports averaged ±2%.

| Expiration | Days | ATM IV | Expected move |
|---|---|---|---|
| 2026-11-20 | 28 | 47.3% | ±10.7% |
| 2027-01-15 | 84 | 33.2% | ±12.6% |
| 2027-04-16 | 175 | 28.1% | ±15.3% |