Federated Investors, Inc.
) achieved a new 52-week high, touching $31.20 on Mar 26. The
stock closed the session at $30.45, reflecting a solid
year-to-date return of 8.7%. The trading volume for the session
was 1.7 million shares.
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Despite the strong price appreciation, this Zacks Rank #3 (Hold)
stock still has upside left, given the positive earnings
surprises it delivered in the past two quarters. Further, the
long-term expected earnings per share growth rate for this
regional bank now stands at 8.0%
Recent acquisitions, global expansion and decent fourth-quarter
results, including lower operating expenses and strong liquidity
position, primarily drove the stock price.
On Mar 14, Federated Investors announced a deal to acquire
fixed-income assets worth $421 million from Huntington Asset
Advisors, Inc., an investment adviser subsidiary of The
Huntington National Bank. The fixed-income assets of Huntington
will be merged into five existing Federated fixed-income mutual
On Jan 23, Federated Investors came out with fourth-quarter 2013
earnings of 39 cents per share, beating the Zacks Consensus
Estimate by 8.3%.
Results were aided by a fairly liquid balance sheet, strong
capital position, lower operating expenses and diversified asset
as well as product mix.
However, a slight fall in assets under management and decline in
the top line were the downsides. Moreover, net income including
non-recurring items declined in the fourth quarter.
Some better-ranked stocks in this space include
AllianceBernstein Holding L.P.
Fortress Investment Group LLC
). All of these sport a Zacks Rank #1 (Strong Buy).