Theodore Zierden III, Vice President at Federated Hermes FHI, reported an insider sell on November 20, according to a new SEC filing.

What Happened: III’s decision to sell 2,478 shares of Federated Hermes was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $102,621.

During Thursday’s morning session, Federated Hermes shares down by 0.0%, currently priced at $41.42.

About Federated Hermes

Federated Hermes provides asset-management services for institutional and individual investors. The firm had $782.7 billion in managed assets at the end of June 2024, composed of equity (10%), multi-asset (less than 1%), fixed-income (12%), alternative (3%), and money market (75%) funds. The firm’s cash-management operations are expected to generate around 50% of Federated’s revenue this year, compared with 28%, 12%, and 10%, respectively, for the equity, fixed-income, and alternatives/multi-asset operations. The company’s products are distributed via trust banks, wealth managers, and retail broker/dealers (64% of AUM), institutional investors (27%), and international clients (9%).

Federated Hermes’s Financial Performance

Revenue Growth: Federated Hermes’s remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 1.44%. This signifies a substantial increase in the company’s top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Profitability Indicators:

• Gross Margin: The company maintains a high gross margin of 66.7%, indicating strong cost management and profitability compared to its peers.

• Earnings per Share (EPS): Federated Hermes’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 1.06.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.41.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 13.11 is lower than the industry average, implying a discounted valuation for Federated Hermes’s stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 2.08 is lower than the industry average, implying a discounted valuation for Federated Hermes’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Federated Hermes’s EV/EBITDA ratio, lower than industry averages at 7.75, indicates attractively priced shares.

Market Capitalization Analysis: The company’s market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Why Insider Transactions Are Important

Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Transaction Codes Worth Your Attention

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Federated Hermes’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.