Saker Anwar Nusseibeh, CEO of Hermes Fund Managers Ltd., a subsidiary of Federated Hermes, Inc. (NYSE:FHI), recently sold a significant portion of his holdings in the company. According to a recent SEC filing, Nusseibeh sold 12,152 shares of Class B Common Stock on November 4, 2024. The shares were sold at a weighted average price of $39.8584, generating a total of approximately $484,359.
Following this transaction, Nusseibeh retains ownership of 179,096 shares. The sale was executed in 38 separate transactions, with prices ranging from $39.58 to $40.05 per share.
In other recent news, Federated Investors, Inc. reported a mixed financial performance for Q3 with record assets under management (AUM) reaching $800 billion. This was mainly driven by significant contributions from money market and fixed income assets. However, the firm faced some redemptions in equity assets, despite which it managed to launch new products and saw growth in its alternative private markets. Additionally, Federated Investors' total Q3 revenue rose by 1% to $5.9 million, and operating expenses decreased due to non-recurring charges.
The company's alternative private markets category grew to $20.7 billion, and it launched new products, including four active ETFs and a collective investment trust. Despite a $1.4 billion net redemption in equity assets, the company anticipates further growth in industry assets and has announced a new share repurchase program. On the other hand, the company's equity assets faced net redemptions of $1.4 billion, and there was a $700 million decline in AUM within the alternatives sector.
Analysts from the company are optimistic about attracting institutional investments with "trillions" in available capital. They foresee growth opportunities in alternative funds, with clients re-upping at higher levels. These are some of the recent developments at Federated Investors.
InvestingPro Insights
While Saker Anwar Nusseibeh's recent sale of Federated Hermes, Inc. (NYSE:FHI) shares might raise eyebrows, it's essential to consider the broader financial picture of the company. According to InvestingPro data, Federated Hermes boasts a market capitalization of $3.11 billion and a P/E ratio of 12.59, suggesting a relatively attractive valuation compared to some peers in the asset management industry.
InvestingPro Tips highlight that management has been aggressively buying back shares, which could be seen as a vote of confidence in the company's future prospects. This buyback activity aligns with the company's strong financial position, as another tip notes that liquid assets exceed short-term obligations.
Federated Hermes has demonstrated its commitment to shareholder returns, maintaining dividend payments for 27 consecutive years. The current dividend yield stands at 3.06%, with a notable dividend growth of 10.71% over the last twelve months. This consistent dividend policy may provide some reassurance to investors concerned about insider selling.
The company's stock has shown robust performance recently, with a 20.57% price total return over the past three months and a 29.55% return over six months. It's currently trading near its 52-week high, with the price at 98.45% of the peak.
For investors seeking more comprehensive analysis, InvestingPro offers 11 additional tips for Federated Hermes, providing a deeper understanding of the company's financial health and market position.
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