News Review: Federated Investors Inc. (NYSE: FII)

On Tuesday, Shares of Federated Investors Inc. (NYSE: FII) inclined 2.14% to $32.00. The stock grabbed the investor’s attention and traded 506.494K shares as compared to its average daily volume of 774.06K shares. The stock’s institutional ownership stands at 91.30%.

Federated Investors, Inc. (FII) recently declared that total managed assets were a record $484.90B at March 31, 2019, up $92.70B or 24% from $392.20B at March 31, 2018 and up $25.00B or 5% from $459.90B at Dec. 31, 2018. Total average managed assets for Q1 2019 were $475.40B, up $77.40B or 19% from $398.00B stated for Q1 2018 and up $31.70B or 7% from $443.70B stated for Q4 2018. The results in this press release include activity of Hermes Fund Managers Limited (Hermes), starting July 1, 2018.

Federated’s equity assets were $80.20B at March 31, 2019, up $21.40B or 36% from $58.80B at March 31, 2018 and up $7.70B or 11% from $72.50B at Dec. 31, 2018. Top-selling equity funds during Q1 2019 on a net basis were Federated Kaufmann Small Cap Fund, Hermes Global Emerging Markets Fund, Federated MDT Small Cap Growth Fund, Federated MDT Small Cap Core Fund and Federated MDT Mid Cap Growth Fund.

Federated’s fixed-income assets were $64.10B at March 31, 2019, up $1.90B or 3% from $62.20B at March 31, 2018 and up $0.90B or 1% from $63.20B at Dec. 31, 2018. Top-selling fixed-income funds during Q1 2019 on a net basis included Federated Total Return Bond Fund, Federated Municipal Ultrashort Fund, Federated U.S. Government Securities Fund: 1-3 Years, Federated Sterling Cash Plus Fund and Federated Mortgage Fund.

Money market assets were $318.40B at March 31, 2019, up $52.50B or 20% from $265.90B at March 31, 2018 and up $16.60B or 6% from $301.80B at Dec. 31, 2018. Money market fund assets were $214.80B at March 31, 2019, up $32.40B or 18% from $182.40B at March 31, 2018 and up $6.30B or 3% from $208.50B at Dec. 31, 2018.  Federated’s money market separate account assets were $103.60B at March 31, 2019, up $20.10B or 24% from $83.50B at March 31, 2018 and up $10.30B or 11% from $93.30B at Dec. 31, 2018.

Financial Summary:

Q1 2019 vs. Q1 2018:

Revenue increased $43.20M or 16% mainly because of the consolidation of Hermes’ revenue, which included performance fees of $2.80M, and higher average money market assets. These increases in revenue were partially offset by a decrease in revenue from lower average equity and fixed-income assets (excluding Hermes).

Operating expenses increased $52.00M or 28% mainly because of the consolidation of Hermes’ expenses.

Non-operating income (expenses), net increased $2.40M mainly because of a boost in the market value of investments.

FII has a market value of $3.24B while its EPS was booked as $2.13 in the last 12 months. The stock has 101.15M shares outstanding. In the profitability analysis, the company has gross profit margin of 96.30% while net profit margin was 17.50%. Beta value of the company was 0.80; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 3.00.

Jack Dawkins

Finance and Tech Contributor