Federated Investors, Inc. (FII) Cut to “Hold” at Zacks Investment Research
Zacks Investment Research lowered shares of Federated Investors, Inc. (NYSE:FII) from a buy rating to a hold rating in a research note issued to investors on Monday morning.
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. The company’s third-quarter results reflected decline in expenses and a strong liquidity position, partially offset by lower revenues. 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 research analysts have also issued reports about the stock. Royal Bank Of Canada set a $28.00 target price on shares of Federated Investors and gave the company a hold rating in a research note on Friday, July 28th. Keefe, Bruyette & Woods reiterated a sell rating and set a $28.00 target price on shares of Federated Investors in a research note on Friday, July 14th. BidaskClub lowered shares of Federated Investors from a sell rating to a strong sell rating in a research note on Monday, August 14th. Jefferies Group LLC reiterated a hold rating and set a $30.00 target price (up from $29.00) on shares of Federated Investors in a research note on Tuesday, October 10th. Finally, Credit Suisse Group decreased their target price on shares of Federated Investors from $29.00 to $27.00 and set a neutral rating for the company in a research note on Friday, August 11th. Three equities research analysts have rated the stock with a sell rating, six have issued a hold rating and two have issued a buy rating to the company’s stock. Federated Investors presently has a consensus rating of Hold and an average price target of $28.75.
Federated Investors (NYSE:FII) last announced its earnings results on Thursday, October 26th. The asset manager reported $0.56 earnings per share for the quarter, beating analysts’ consensus estimates of $0.53 by $0.03. The business had revenue of $278.32 million during the quarter, compared to analyst estimates of $278.51 million. Federated Investors had a net margin of 19.32% and a return on equity of 34.54%. The company’s quarterly revenue was down 5.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.54 EPS.
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The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 15th. Shareholders of record on Wednesday, November 8th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 3.22%. The ex-dividend date is Tuesday, November 7th. Federated Investors’s dividend payout ratio (DPR) is presently 47.62%.
Several large investors have recently made changes to their positions in the stock. Northwest Investment Counselors LLC lifted its holdings in shares of Federated Investors by 4.3% in the 3rd quarter. Northwest Investment Counselors LLC now owns 61,258 shares of the asset manager’s stock valued at $1,819,000 after acquiring an additional 2,531 shares during the last quarter. Victory Capital Management Inc. lifted its holdings in shares of Federated Investors by 52.1% in the 3rd quarter. Victory Capital Management Inc. now owns 1,332,298 shares of the asset manager’s stock valued at $39,570,000 after acquiring an additional 456,280 shares during the last quarter. Crossmark Global Holdings Inc. bought a new position in shares of Federated Investors in the 3rd quarter valued at about $226,000. Palisade Asset Management LLC lifted its holdings in shares of Federated Investors by 85.8% in the 3rd quarter. Palisade Asset Management LLC now owns 34,420 shares of the asset manager’s stock valued at $1,022,000 after acquiring an additional 15,890 shares during the last quarter. Finally, Rehmann Capital Advisory Group bought a new position in shares of Federated Investors in the 3rd quarter valued at about $277,000. 83.27% of the stock is owned by hedge funds and other institutional investors.
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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