PITTSBURGH - Investment management firm Federated Hermes, Inc. (NYSE:FHI) is set to nominate Karen L. Hanlon as an independent director to its board during the Annual Meeting of Shareholders in April 2024. The board, which currently consists of six members, is expected to expand to seven with Hanlon's election.
Hanlon, the executive vice president and chief operating officer of Highmark Health, brings over three decades of financial and leadership expertise to the table. Her current role at Highmark Health, a major health organization with a $26 billion annual revenue, involves steering strategy and overseeing long-term operations. Her career began at KPMG Peat Marwick before she moved to Highmark Inc. in 1997, where she has since held key financial positions, including chief financial officer and treasurer.
J. Christopher Donahue, president and CEO of Federated Hermes, praised Hanlon's strategic vision and financial acumen, anticipating her contribution towards the firm's commitment to client service and shareholder value enhancement. He underscored her potential impact on the company's growth and innovation as it expands globally.
With $757.6 billion in assets under management as of December 31, 2023, Federated Hermes offers a variety of investment solutions across equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies. The firm serves a diverse clientele, including corporations, government entities, insurance companies, foundations, endowments, banks, and broker/dealers.
Upon joining the board, Hanlon is expected to serve on the audit, compensation, and compliance committees.
This announcement is based on a press release statement from Federated Hermes, Inc.
InvestingPro Insights
Federated Hermes, Inc. (NYSE:FHI), a prominent investment management firm, is not only expanding its board but also showing robust financial metrics that could interest investors. With a market capitalization of $2.89 billion, the company is trading at an attractive P/E ratio of 10.49, which is even more appealing when considering the adjusted P/E ratio for the last twelve months as of Q4 2023, which stands at 10.15. This is particularly noteworthy as the company is trading at a low P/E ratio relative to its near-term earnings growth, according to InvestingPro Tips.
Another compelling aspect for shareholders is Federated Hermes's consistent history of dividend payments, having maintained them for 27 consecutive years. The firm's dividend yield as of early 2024 is 3.15%, with a dividend growth of 3.7% over the last twelve months. This stability is underpinned by the company's ability to cover its interest payments with its cash flows, a reassuring sign for income-focused investors.
As for profitability, analysts predict that Federated Hermes will be profitable this year, a prediction supported by the company's performance over the last twelve months. The firm's commitment to client service and shareholder value enhancement, as highlighted by President and CEO J. Christopher Donahue, seems to be reflected in its financials, with a gross profit margin of 65.0% and an operating income margin of 24.08% for the same period.
For investors seeking more detailed analysis and additional InvestingPro Tips, there are 5 more tips available on InvestingPro, which could provide further insights into Federated Hermes's financial health and growth prospects. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with valuable data and expert analysis.
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