Should I Buy FHI? FHI 2026 Analysis

Should You Buy Federated Hermes Inc (FHI) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Buy

Latest Price

52.120

1 Day change

-0.44%

52 Week Range

55.130

Analysis Updated At

2026/02/04

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Buy now: Strong fundamental momentum (record AUM, Q4 beat, double-digit revenue growth) plus bullish longer-term trend structure (SMA_5 > SMA_20 > SMA_200) supports upside continuation.
Near-term setup: Price is sitting just above the pivot (~53.31). With an impatient profile, the risk/reward is acceptable for a push toward R1 ~54.70 and R2 ~55.55.
Sentiment check: Hedge funds are aggressively buying, which offsets the negative signal from increased insider selling.
Intellectia Proprietary Trading Signals
- AI Stock Picker: no signal on given stock today.
- SwingMax: No signal on given stock recently.
No politician/congress catalyst: No recent congress trading data available, and no politician/influential-figure transaction data provided.

Technical Analysis

Trend: Bullish moving-average stack (SMA_5 > SMA_20 > SMA_200) indicates an intact uptrend/positive structure.
Momentum: MACD histogram -0.105 (below zero) but negatively contracting suggests bearish momentum is fading (potential turn/renewed push higher).
RSI: RSI_6 ~49 = neutral; no overbought constraint if buyers step in.
Key levels:
- Pivot: 53.308 (price is slightly above, constructive)
- Resistance: 54.695 (R1) then 55.552 (R2)
- Support: 51.922 (S1) then 51.065 (S2)
Pattern-based bias: Similar-pattern stats imply +3.42% next week but -3.09% next month → favors a quicker upside attempt rather than a long wait.

Options Data

Neutral

Open Interest Put-Call Ratio

Bullish

Option Volume Put-Call Ratio

Positioning (Open Interest): Put/Call OI ratio 0.95 = fairly balanced to slightly call-leaning; not a strong fear signal.
Flow (Volume): Put/Call volume ratio 0.0 (puts effectively absent today) but total volume is tiny (only 1 contract), so sentiment read is weak.
Volatility: IV 30d 43.52 vs historical vol 22.43 (IV elevated). IV percentile 74.5 suggests options are pricing a larger-than-usual move.
Liquidity/Activity: Today vs 30D average volume 12.5x (from a very low base), indicating a small pickup in attention.

Technical Summary

Sell

Buy

Positive Catalysts

- Q4 earnings beat with strong YoY growth; market tone described as positive.
- Record AUM ($903B for 2025) and net equity sales ($4.6B) support fee base and scale narrative.
- Hedge funds buying: reported buying amount up 2165% over the last quarter.
- Analyst price targets nudging higher post-earnings (RBC + TD Cowen raised targets), reinforcing a “supported” tape near current levels.

Neutral/Negative Catalysts

- Insiders selling: selling amount up 8237.5% over the last month (notable counter-signal vs hedge fund buying).
- Legal overhang: lawsuit headlines and related allegations/denials can cap multiples short-term.
- Cost pressure commentary: management caution about future revenue due to rising costs may limit upside follow-through.
- 1-month pattern projection is negative (-3.09%), implying upside may be more tactical/near-term than durable without new catalysts.

Financial Performance

Latest quarter: 2025/Q4
- Revenue: $467.32M, +14.14% YoY
- Net income: $107.04M, +32.04% YoY
- EPS: $1.45, +39.42% YoY
Growth is accelerating at the bottom line (net income/EPS outpacing revenue), consistent with strong operating leverage in the quarter.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Recent rating/target trend: Mostly steady Hold/Neutral/Sector Perform stance, with modest upward price target revisions after Q4 results.
- 2026-02-03 RBC: Sector Perform, PT $55 (from $54)
- 2026-02-02 TD Cowen: Hold, PT $57 (from $54)
- 2026-01-27 JPMorgan: Neutral, PT $55 (from $56)
Wall Street pros: Earnings execution, AUM growth outlook, and improved model assumptions.
Wall Street cons: Ratings remain non-committal (not upgraded to Buy), reflecting concerns around sustainability of flows/margins and near-term risk factors (costs/legal headlines).

4 Analyst Rating

Wall Street analysts forecast FHI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for FHI is 53.75 USD with a low forecast of 51 USD and a high forecast of 56 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

3 Hold

0 Sell

Hold

Current: 52.350

Low

Averages

53.75

High

Current: 52.350

Low

Averages

53.75

High

RBC Capital

Kenneth Lee

Sector Perform

maintain

$54 -> $55

AI Analysis

2026-02-03

Reason

RBC Capital

Kenneth Lee

Price Target

$54 -> $55

AI Analysis

2026-02-03

maintain

Sector Perform

Reason

RBC Capital analyst Kenneth Lee raised the firm's price target on Federated Hermes to $55 from $54 and keeps a Sector Perform rating on the shares. The firm is updating its model after the company's Q4 earnings beat and believes that its assets under management will grow about 4% y/y this year, the analyst tells investors in a research note.

TD Cowen

Hold

maintain

$54 -> $57

2026-02-02

Reason

TD Cowen

Price Target

$54 -> $57

2026-02-02

maintain

Hold

Reason

TD Cowen raised the firm's price target on Federated Hermes to $57 from $54 and keeps a Hold rating on the shares. The firm updated its model following results where they left the conference call with a mixed to positive tactical view on the shares.

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FHI Should I Buy

FHI Should I Buy

Should You Buy Federated Hermes Inc (FHI) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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