Federated Investors Inc. (NYSE:FII) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Thursday.
According to Zacks, “We remain concerned about Federated’s asset under management owing to volatility in equity markets. Further, stringent regulations in the investment management business will hurt its profitability. Also, compliance-related fees are expected to continue rising in the near term. Notably, management expects compensation expenses to increase to $74 million in third-quarter 2016. Also, fee waivers for third-quarter 2016 are estimated to result in a negative pre-tax impact of $4 million.This will continue to exert pressure on the company’s earnings. However, Federated’s growth potential looks encouraging, given its diversified investment products and strategic expansion moves. Moreover, steady capital deployment activities should enhance shareholders’ value.”
Several other research firms have also recently weighed in on FII. Jefferies Group decreased their price target on shares of Federated Investors from $37.00 to $35.00 and set a “buy” rating on the stock in a report on Tuesday, October 11th. Keefe, Bruyette & Woods upped their price target on shares of Federated Investors from $33.00 to $35.00 and gave the stock a “market perform” rating in a report on Monday, August 1st. Finally, Credit Suisse Group AG set a $27.00 price target on shares of Federated Investors and gave the stock a “sell” rating in a report on Sunday, July 31st. Four investment analysts have rated the stock with a sell rating, one has issued a hold rating and two have issued a buy rating to the stock. Federated Investors presently has a consensus rating of “Hold” and an average price target of $30.13.
Federated Investors (NYSE:FII) opened at 27.62 on Thursday. The firm’s 50-day moving average price is $30.72 and its 200 day moving average price is $30.73. Federated Investors has a one year low of $22.76 and a one year high of $33.13. The firm has a market capitalization of $2.75 billion, a P/E ratio of 15.18 and a beta of 1.51.
Federated Investors (NYSE:FII) last posted its earnings results on Thursday, July 28th. The company reported $0.51 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.48 by $0.03. The firm had revenue of $286.74 million for the quarter, compared to the consensus estimate of $284.39 million. Federated Investors had a return on equity of 28.98% and a net margin of 18.30%. The business’s quarterly revenue was up 25.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.40 earnings per share. On average, equities analysts anticipate that Federated Investors will post $1.98 earnings per share for the current fiscal year.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Geode Capital Management LLC boosted its position in Federated Investors by 0.3% in the first quarter. Geode Capital Management LLC now owns 590,719 shares of the company’s stock worth $17,041,000 after buying an additional 1,822 shares in the last quarter. UBS Group AG boosted its position in Federated Investors by 2.0% in the first quarter. UBS Group AG now owns 110,994 shares of the company’s stock worth $3,202,000 after buying an additional 2,139 shares in the last quarter. Rafferty Asset Management LLC boosted its position in Federated Investors by 49.0% in the first quarter. Rafferty Asset Management LLC now owns 12,376 shares of the company’s stock worth $357,000 after buying an additional 4,071 shares in the last quarter. State Street Corp boosted its position in Federated Investors by 0.4% in the first quarter. State Street Corp now owns 2,675,072 shares of the company’s stock worth $77,183,000 after buying an additional 10,580 shares in the last quarter. Finally, Credit Agricole S A boosted its position in shares of Federated Investors by 4.1% in the first quarter. Credit Agricole S A now owns 35,395 shares of the company’s stock worth $1,021,000 after buying an additional 1,401 shares during the period. 75.42% of the stock is currently owned by institutional investors and hedge funds.
Federated Investors Company Profile
Federated Investors, Inc (Federated) is a provider of investment management products and related financial services. The Company 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, in both domestic and international markets.
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