Zacks Investment Research Upgrades Federated Investors (NYSE:FII) to Strong-Buy

Federated Investors (NYSE:FII) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a note issued to investors on Thursday, January 4th. The firm currently has a $41.00 target price on the asset manager’s stock. Zacks Investment Research‘s price target would indicate a potential upside of 16.68% 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.”

FII has been the subject of several other reports. ValuEngine cut Federated Investors from a “buy” rating to a “hold” rating in a research note on Sunday, November 12th. Jefferies Group reissued 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. Royal Bank of Canada set a $31.00 target price on Federated Investors and gave the stock a “hold” rating in a research note on Friday, December 15th. Citigroup boosted their target price on Federated Investors from $22.00 to $24.00 and gave the stock a “sell” rating in a research note on Tuesday, October 31st. Finally, Keefe, Bruyette & Woods reissued a “sell” rating and set a $31.00 target price on shares of Federated Investors in a research note on Wednesday, November 1st. Four investment analysts have rated the stock with a sell rating, five have issued a hold rating, one has given a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of “Hold” and a consensus price target of $30.75.

Federated Investors (FII) traded up $0.14 during trading hours on Thursday, reaching $35.14. The company’s stock had a trading volume of 915,700 shares, compared to its average volume of 986,500. The company has a debt-to-equity ratio of 0.27, a current ratio of 3.33 and a quick ratio of 1.89. The stock has a market capitalization of $3,545.77, a P/E ratio of 16.73, a P/E/G ratio of 1.35 and a beta of 1.56. Federated Investors has a 12 month low of $24.93 and a 12 month high of $36.67.

Federated Investors (NYSE:FII) last posted its quarterly earnings data on Thursday, October 26th. The asset manager reported $0.56 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.53 by $0.03. The firm had revenue of $278.32 million for the quarter, compared to the consensus estimate of $278.51 million. Federated Investors had a return on equity of 34.54% and a net margin of 19.32%. The company’s quarterly revenue was down 5.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.54 EPS. equities analysts expect that Federated Investors will post 2.16 EPS for the current year.

In other Federated Investors news, VP John B. Fisher sold 6,460 shares of the company’s stock in a transaction that occurred on Thursday, November 2nd. The stock was sold at an average price of $31.49, for a total transaction of $203,425.40. Following the completion of the sale, the vice president now directly owns 508,445 shares of the company’s stock, valued at approximately $16,010,933.05. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Thomas R. Donahue sold 30,000 shares of the company’s stock in a transaction that occurred on Thursday, December 14th. The shares were sold at an average price of $34.79, for a total value of $1,043,700.00. Following the sale, the chief financial officer now directly owns 634,044 shares of the company’s stock, valued at $22,058,390.76. The disclosure for this sale can be found here. Over the last three months, insiders sold 47,430 shares of company stock valued at $1,636,457. Insiders own 7.10% of the company’s stock.

Hedge funds have recently modified their holdings of the company. Virginia Retirement Systems ET AL raised its stake in shares of Federated Investors by 46.4% during the 3rd quarter. Virginia Retirement Systems ET AL now owns 36,600 shares of the asset manager’s stock worth $1,087,000 after buying an additional 11,600 shares in the last quarter. FMR LLC raised its stake in shares of Federated Investors by 3.5% during the 2nd quarter. FMR LLC now owns 9,096,091 shares of the asset manager’s stock worth $256,965,000 after buying an additional 304,322 shares in the last quarter. Ameriprise Financial Inc. raised its stake in shares of Federated Investors by 50.8% during the 2nd quarter. Ameriprise Financial Inc. now owns 520,348 shares of the asset manager’s stock worth $14,698,000 after buying an additional 175,384 shares in the last quarter. Simmons Bank raised its stake in shares of Federated Investors by 3.8% during the 2nd quarter. Simmons Bank now owns 213,031 shares of the asset manager’s stock worth $6,019,000 after buying an additional 7,722 shares in the last quarter. Finally, Rehmann Capital Advisory Group purchased a new position in shares of Federated Investors during the 3rd quarter worth approximately $277,000. 85.11% of the stock is owned by institutional investors and hedge funds.

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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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