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Federated Hermes, Inc. (FHI) Stock Analysis

Temp Headwind edge

Buy WaitVALUE-TRAP 1/5Moderate Confidence

Financial Services · Asset Management

Wait for pullback to $52.94. Weak momentum — blocks BUY_NOW at $53.54. Engine's entry $52.94 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: money market assets (53.0%); Concentration risk — Customer: U.S. financial intermediary market (68.0%).

Federated Hermes is a global investment manager with $902.6B AUM across money market ($682.6B), equity ($97.9B), fixed-income ($100.1B), and alternative/private markets ($19.1B) strategies, earning $1.8B in total revenues. Approximately 53% of 2025 revenue came from money market... Read more

$53.54+7.4% A.UpsideScore 5.5/10#44 of 109 Asset Management
QualityF-score8 / 9FCF yield8.95%
IncomeYield2.61%(5y avg 3.05%)Payout26.41%sustainable
Entry $52.94(Support Atr Sticky)Stop $49.30Target $56.82(resistance)A.R:R -1.5:1Setup A.R:R 1.6:1
Analyst target$55.43+3.5%7 analysts
$56.82our TP
$53.54price
$55.43mean
$53
$58

Wait for pullback to $52.94. Weak momentum — blocks BUY_NOW at $53.54. Engine's entry $52.94 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: money market assets (53.0%); Concentration risk — Customer: U.S. financial intermediary market (68.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Wide-moat business. Accumulate on weakness. Score 5.5/10, moderate confidence.

Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 71d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.

Val6.9Qual8.9Grw4.0Mom2.7Sent3.8Ins3.4Peer5.2Tech8.1Risk7.25.5OVERALL

Recent Developments — Federated Hermes, Inc.

Latest news

Generated 2026-05-20T20:21:21Z.

Thesis

Rewards
V7 flight-to-quality bonus: +0.5 (Q=8.9 in RISK_OFF)
Sector modifier (Financial Services): +1.0
Strong earnings beat streak (4/4)
Risks
Concentration risk — Product: money market assets (53.0%)
Concentration risk — Customer: U.S. financial intermediary market (68.0%)
Analyst target reached - limited upside remaining

Key Metrics

P/E (TTM)10.4
P/E (Fwd)9.5
Mkt Cap$4.1B
EV/EBITDA7.1
Profit Mgn21.5%
ROE33.8%
Rev Growth13.1%
Beta0.65
Dividend2.61%
Rating analysts15

Quality Signals

Piotroski F8/9MoatWideCompounder✓

Options Flow

P/C0.25bullish
IV39%normal
Max Pain$53-1.9% vs spot

Concentration Risks(10-K Item 1A)

  • HIGHProductmoney market assets53%
    10-K Item 1A: 'Approximately 53% of Federated Hermes' total 2025 revenue was attributable to money market assets'
  • HIGHCustomerU.S. financial intermediary market68%
    10-K Item 1: 'U.S. financial intermediary (68%); U.S. institutional (25%); and international (7%)'

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers·1 ceiling hit

Momentum below the gate floor. Component breakdown shows what dragged the score down.static

Volume
0.0
Macd
0.3
Obv
1.0
Ma Position
4.0
Rsi
8.1
Uptrend pullback (RSI 34) - buy opportunityVolume distribution (falling OBV)Above 200-day MA

Negative sentiment — recent news tone and/or analyst downgrades drag the composite below neutral.static

Erm Sentiment
0.0
Analyst Rating
5.0
Price Target
5.5
Estimates falling as sentiment proxy (-23.9%)
GatesMomentum 2.7<4.5A.R:R -1.5=NEGATIVEInsider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 71d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARSuitability: Aggressive
RSI
34 · Neutral
↓ 20D MA↓ 50D MA↑ 200D MAGOLDEN CROSSSupport $51.98Resistance $57.98

Price Targets

$49
$53
$57
A.Upside+6.1%
A.R:R-1.5:1
Setup A.R:R (at entry)1.6:1

Position Sizing

ConvictionHigh conviction
Suggested %0.6%
Max %1.2%
RegimeRisk-Off

Risk Alerts

! Target reached (-9.9% upside)
! Momentum score 2.7/10 — below 4.5 minimum
! Negative risk/reward — downside exceeds upside

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-07-30 (71d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is FHI stock a buy right now?

Wait for pullback to $52.94. Weak momentum — blocks BUY_NOW at $53.54. Engine's entry $52.94 (Support Atr Sticky) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risks: Concentration risk — Product: money market assets (53.0%); Concentration risk — Customer: U.S. financial intermediary market (68.0%). Chart setup: No recognized chart pattern (not a breakout, bounce, continuation, recovery, falling knife, or range) — technicals mixed. Wide-moat business. Accumulate on weakness. Target $56.82 (+6.1%), stop $49.30 (−8.6%), Setup A.R:R 1.6:1. Score 5.5/10, moderate confidence.

What is the FHI stock price target?

Take-profit target: $56.82 (+7.4% upside). Target $56.82 (+6.1%), stop $49.30 (−8.6%), Setup A.R:R 1.6:1. Stop-loss: $49.30.

What are the risks of investing in FHI?

Concentration risk — Product: money market assets (53.0%); Concentration risk — Customer: U.S. financial intermediary market (68.0%); Analyst target reached - limited upside remaining.

Is FHI overvalued or undervalued?

Federated Hermes, Inc. trades at a P/E of 10.4 (forward 9.5). TrendMatrix value score: 6.9/10. Verdict: Buy (Wait for Entry).

What do analysts say about FHI?

15 analysts cover FHI with a consensus score of 2.6/5. Average price target: $55.

What does Federated Hermes, Inc. do?Federated Hermes is a global investment manager with $902.6B AUM across money market ($682.6B), equity ($97.9B),...

Federated Hermes is a global investment manager with $902.6B AUM across money market ($682.6B), equity ($97.9B), fixed-income ($100.1B), and alternative/private markets ($19.1B) strategies, earning $1.8B in total revenues. Approximately 53% of 2025 revenue came from money market assets; the US financial intermediary market holds 68% of managed assets.

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