Federated Investors (FII) Shares Down 7.3% Following Weak Earnings

Federated Investors Inc (NYSE:FII) traded down 7.3% during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $29.97 and last traded at $31.09. 2,339,512 shares traded hands during trading, an increase of 166% from the average session volume of 880,789 shares. The stock had previously closed at $33.54.

The asset manager reported $0.54 earnings per share for the quarter, missing the consensus estimate of $0.56 by ($0.02). Federated Investors had a return on equity of 29.33% and a net margin of 19.40%. The business had revenue of $307.10 million for the quarter, compared to analyst estimates of $309.09 million. During the same period last year, the business posted $0.60 EPS. Federated Investors’s revenue was up 16.4% on a year-over-year basis.

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 15th. Stockholders of record on Wednesday, May 8th will be given a dividend of $0.27 per share. This represents a $1.08 annualized dividend and a dividend yield of 3.47%. The ex-dividend date of this dividend is Tuesday, May 7th. Federated Investors’s dividend payout ratio (DPR) is presently 45.19%.

Several equities research analysts have recently weighed in on the company. Bank of America set a $28.00 target price on Federated Investors and gave the stock a “sell” rating in a research report on Tuesday, April 9th. ValuEngine lowered Federated Investors from a “hold” rating to a “sell” rating in a research report on Friday, January 11th. Finally, Zacks Investment Research reissued a “buy” rating and set a $28.00 target price on shares of Federated Investors in a research report on Monday, December 31st. One research analyst has rated the stock with a sell rating, six have issued a hold rating, one has assigned a buy rating and one has given a strong buy rating to the company. The stock presently has an average rating of “Hold” and an average target price of $27.50.

In related news, Director Gordon J. Ceresino sold 13,316 shares of Federated Investors stock in a transaction that occurred on Thursday, March 21st. The stock was sold at an average price of $29.34, for a total value of $390,691.44. Following the sale, the director now directly owns 177,153 shares in the company, valued at $5,197,669.02. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Peter J. Germain sold 1,682 shares of Federated Investors stock in a transaction that occurred on Tuesday, March 5th. The shares were sold at an average price of $29.76, for a total value of $50,056.32. Following the completion of the sale, the executive vice president now owns 112,946 shares in the company, valued at $3,361,272.96. The disclosure for this sale can be found here. Insiders sold a total of 38,029 shares of company stock worth $1,126,318 over the last quarter. Company insiders own 5.50% of the company’s stock.

Several institutional investors have recently bought and sold shares of the stock. BlackRock Inc. raised its holdings in Federated Investors by 0.3% during the fourth quarter. BlackRock Inc. now owns 13,333,986 shares of the asset manager’s stock worth $354,019,000 after purchasing an additional 35,445 shares during the last quarter. Great West Life Assurance Co. Can raised its holdings in Federated Investors by 2.2% during the fourth quarter. Great West Life Assurance Co. Can now owns 5,873,857 shares of the asset manager’s stock worth $151,851,000 after purchasing an additional 123,865 shares during the last quarter. Schneider Downs Wealth Management Advisors LP raised its holdings in Federated Investors by 74.1% during the fourth quarter. Schneider Downs Wealth Management Advisors LP now owns 5,232,641 shares of the asset manager’s stock worth $138,927,000 after purchasing an additional 2,226,812 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Federated Investors by 0.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,067,345 shares of the asset manager’s stock worth $81,438,000 after purchasing an additional 21,716 shares during the last quarter. Finally, APG Asset Management N.V. raised its holdings in Federated Investors by 5.0% during the fourth quarter. APG Asset Management N.V. now owns 1,456,600 shares of the asset manager’s stock worth $33,830,000 after purchasing an additional 69,700 shares during the last quarter. Hedge funds and other institutional investors own 85.72% of the company’s stock.

The firm has a market capitalization of $3.29 billion, a PE ratio of 13.01, a price-to-earnings-growth ratio of 1.77 and a beta of 0.87. The company has a quick ratio of 1.49, a current ratio of 1.68 and a debt-to-equity ratio of 0.16.

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Federated Investors Company Profile (NYSE:FII)

Federated Investors, Inc is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors.

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