Federated Investors Hits 52-Week High - Analyst Blog

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Shares of Federated Investors, Inc. ( FII ) 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.

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%

Growth Drivers

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 funds.

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. ( AB ), Fortress Investment Group LLC ( FIG ) and Lazard Ltd. ( LAZ ). All of these sport a Zacks Rank #1 (Strong Buy).



ALLIANCEBERNSTN (AB): Free Stock Analysis Report

FORTRESS INVEST (FIG): Free Stock Analysis Report

FEDERATED INVST (FII): Free Stock Analysis Report

LAZARD LTD (LAZ): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: AB , FIG , FII , LAZ

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