Federated Hermes Inc Shares Surpass Analyst Target Price of $39.00
In recent trading, shares of Federated Hermes Inc (Symbol: FHI) have exceeded the average 12-month target price set by analysts, now trading at $40.10 per share. When a stock reaches its target price, analysts typically consider two options: downgrading the stock based on valuation or adjusting their price targets upward. The decision may hinge on the company’s fundamental performance—if prospects are improving, it may warrant a higher target.
Analyst Price Targets Provide Insight
Analysts from Zacks contribute to the average target price for Federated Hermes, but it’s important to note that averages can obscure individual opinions. Some analysts have set lower price targets, with one projecting a price of $34.00, while another forecasts a high target of $47.00. The standard deviation among these targets is $3.854, reflecting varied opinions within the analyst community.
Assessing Future Valuation and Investment Decisions
The rationale for focusing on the average target price lies in the “wisdom of crowds” principle. By considering contributions from various analysts, investors can better gauge market sentiment. With FHI now above the $39.00 target, investors may want to evaluate whether this price is merely a step toward higher valuations or if current prices suggest that it’s time to reconsider their positions. Below is a breakdown of current analyst ratings for Federated Hermes Inc:
| Recent FHI Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong Buy ratings: | 3 | 3 | 3 | 3 |
| Buy ratings: | 0 | 0 | 0 | 0 |
| Hold ratings: | 4 | 4 | 4 | 5 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong Sell ratings: | 1 | 1 | 1 | 0 |
| Average rating: | 2.5 | 2.5 | 2.5 | 2.25 |
The average rating displayed in the table is on a scale of 1 to 5, where 1 indicates a Strong Buy and 5 indicates a Strong Sell. Data was sourced from Zacks Investment Research via Quandl.com.
10 ETFs With Most Upside To Analyst Targets »
See:
• Top Ten Hedge Funds Holding IINN
• SUN YTD Return
• NMTC Insider Buying
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
