Federated Investors (NYSE:FII) Raised to Strong-Buy at Zacks Investment Research
Federated Investors (NYSE:FII) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research note issued to investors on Thursday, January 4th. The brokerage presently has a $41.00 price objective on the asset manager’s stock. Zacks Investment Research‘s price objective indicates a potential upside of 16.15% from the stock’s current price.
According to Zacks, “Shares of Federated have outperformed the industry over the last six months. Also, the company boasts an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate for earnings in all the trailing four quarters. It’s top-line continues to get support from the rise in interest rates and increasing assets under management. Also, Federated’s inorganic growth strategies to expand fund offerings encourage us. However, mounting expenses remain a major concern. Also, stretched valuation indicates limited upside potential in the stock.”
Other equities research analysts have also recently issued research reports about the company. Jefferies Group restated a “hold” rating and issued a $30.00 price target (up previously from $29.00) on shares of Federated Investors in a research note on Tuesday, October 10th. Deutsche Bank initiated coverage on Federated Investors in a research note on Tuesday, October 17th. They issued a “hold” rating and a $31.00 price target on the stock. Royal Bank of Canada set a $28.00 price target on Federated Investors and gave the company a “hold” rating in a research note on Wednesday, October 18th. ValuEngine upgraded Federated Investors from a “hold” rating to a “buy” rating in a research note on Thursday, October 26th. Finally, Argus cut Federated Investors from a “buy” rating to a “hold” rating in a research note on Monday, October 30th. Four analysts have rated the stock with a sell rating, five have issued a hold rating, one has issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average price target of $31.50.
Federated Investors (NYSE:FII) last announced its quarterly earnings data on Thursday, January 25th. The asset manager reported $0.61 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.58 by $0.03. Federated Investors had a return on equity of 33.23% and a net margin of 26.42%. The company had revenue of $278.31 million for the quarter, compared to analysts’ expectations of $283.45 million. During the same quarter in the prior year, the business posted $0.52 EPS. The business’s revenue was down 4.0% compared to the same quarter last year. analysts forecast that Federated Investors will post 2.74 earnings per share for the current fiscal year.
In other Federated Investors news, CFO Thomas R. Donahue sold 30,000 shares of the stock in a transaction on Thursday, December 14th. The stock was sold at an average price of $34.79, for a total transaction of $1,043,700.00. Following the transaction, the chief financial officer now owns 634,044 shares in the company, valued at approximately $22,058,390.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP John B. Fisher sold 6,460 shares of the stock in a transaction on Thursday, November 2nd. The stock was sold at an average price of $31.49, for a total value of $203,425.40. Following the transaction, the vice president now owns 508,445 shares in the company, valued at approximately $16,010,933.05. The disclosure for this sale can be found here. Insiders have sold a total of 47,430 shares of company stock worth $1,636,457 in the last quarter. Company insiders own 7.10% of the company’s stock.
Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Jensen Investment Management Inc. acquired a new stake in shares of Federated Investors during the 4th quarter worth $404,000. APG Asset Management N.V. acquired a new stake in shares of Federated Investors during the 4th quarter worth $4,633,000. SG Americas Securities LLC grew its holdings in shares of Federated Investors by 201.8% during the 4th quarter. SG Americas Securities LLC now owns 36,455 shares of the asset manager’s stock worth $1,315,000 after purchasing an additional 24,375 shares in the last quarter. First Quadrant L P CA grew its holdings in shares of Federated Investors by 65.6% during the 4th quarter. First Quadrant L P CA now owns 392,346 shares of the asset manager’s stock worth $14,156,000 after purchasing an additional 155,482 shares in the last quarter. Finally, James Investment Research Inc. grew its holdings in shares of Federated Investors by 5.4% during the 4th quarter. James Investment Research Inc. now owns 64,205 shares of the asset manager’s stock worth $2,317,000 after purchasing an additional 3,305 shares in the last quarter. 85.40% of the stock is currently owned by institutional investors.
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Federated Investors Company Profile
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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