On May 26, 2023, Peter Germain, the Executive Vice President, Chief Legal Officer, and Secretary of Federated Hermes Inc (FHI, Financial), sold 2,380 shares of the company's stock. This move comes amidst a year of insider selling activity for the company, with no insider buys recorded over the same period. In this article, we will take a closer look at Peter Germain's role in the company, Federated Hermes Inc's business, and the relationship between insider transactions and stock price.
Who is Peter Germain?
Peter Germain serves as the Executive Vice President, Chief Legal Officer, and Secretary of Federated Hermes Inc. He plays a crucial role in overseeing the company's legal matters and ensuring compliance with relevant regulations. Over the past year, Peter Germain has sold a total of 4,757 shares and has not purchased any shares.
Federated Hermes Inc's Business Description
Federated Hermes Inc is a leading global investment manager with a focus on providing world-class asset management services to investors. The company offers a wide range of investment solutions, including equity, fixed-income, alternative, and money market funds. With a commitment to responsible investing, Federated Hermes Inc aims to deliver long-term, sustainable returns for its clients while also contributing positively to society and the environment.
Insider Trends
The insider transaction history for Federated Hermes Inc reveals a trend of insider selling over the past year. There have been 32 insider sells in total, with no insider buys recorded during the same period. This could indicate that insiders believe the stock is overvalued or that they are taking advantage of favorable market conditions to cash in on their holdings.
Valuation
On the day of Peter Germain's recent sale, shares of Federated Hermes Inc were trading at $35.47 apiece, giving the stock a market cap of $3,228.061 million. The price-earnings ratio stands at 12.74, which is lower than the industry median of 13.15 and lower than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its historical valuation.
With a current price of $35.47 and a GuruFocus Value of $40.44, Federated Hermes Inc has a price-to-GF-Value ratio of 0.88. This indicates that the stock is modestly undervalued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, which takes into account the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
Conclusion
The recent sale of 2,380 shares by Peter Germain, EVP, CLO & Sec. of Federated Hermes Inc, adds to the trend of insider selling activity for the company over the past year. While the stock appears to be modestly undervalued based on its GF Value, the lack of insider buying activity could be a cause for concern. Investors should keep a close eye on the company's financial performance and any further insider transactions to make informed decisions about their investments in Federated Hermes Inc.
