Item 5. Market for Registrant’s Common Equity
ITEM 5 – MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Federated Hermes' Class B common stock was traded on the NYSE under the symbol FII. Effective February 3, 2020, Class B common stock began trading under the ticker symbol FHI.
The approximate number of beneficial shareholders of Class A and Class B common stock as of February 12, 2021, was 1 and 23,944, respectively. See Item 1A - Risk Factors under the caption Specific Risk Factors - Risks Related to Federated Hermes' Corporate Structure - Status as a Controlled Company for additional information on its Class A common stock.
The following table summarizes stock repurchases under Federated Hermes' share repurchase program during the fourth quarter of 2020.
Total Number
of Shares
Purchased Average
Price Paid
Per Share Total Number of Shares
Purchased as Part of
Publicly Announced
Plans or Programs 1
Maximum Number of
Shares that May Yet
Be Purchased Under
the Plans or Programs 1
October 2
75,700 $ 21.76 75,000 2,101,755
November 130,000 24.89 130,000 1,971,755
December 310,000 28.75 310,000 1,661,755
Total 515,700 $ 26.75 515,000 1,661,755
1 In April 2020, the board of directors authorized a share repurchase program with no stated expiration date that allows the buy back of up to 3.5 million shares of Class B common stock. No other programs existed as of December 31, 2020. See Note (15) to the Consolidated Financial Statements for additional information on this program.
2 In October 2020, 700 shares of Class B common stock with a weighted-average price of $3.00 per share were repurchased as an employee forfeited restricted stock.
See Item 12 - Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters for information on Federated Hermes' securities authorized for issuance under equity compensation plans.
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Stock Performance Graph
The following performance graph compares the total shareholder return of an investment in Federated Hermes' Class B Common Stock to that of the Standard and Poor's MidCap 400 ® Index (S&P MidCap 400 Index) and to the S&P 1500 Asset Management & Custody Banks Index for the five-year period ended on December 31, 2020.
The graph assumes that the value of the investment in Class B Common Stock and each index was $100 on December 31, 2015. Total return includes reinvestment of all dividends. As a member of the S&P MidCap 400 Index as of December 31, 2020, Federated Hermes is required to include this comparison. The historical information set forth below is not necessarily indicative of future performance. Federated Hermes does not make or endorse any predictions as to future stock performance.
12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020
Federated Hermes $ 106.49 $ 140.84 $ 107.96 $ 137.19 $ 131.99
S&P MidCap 400 Index
$ 120.74 $ 140.35 $ 124.80 $ 157.49 $ 179.00
S&P 1500 Asset Management & Custody Banks Index $ 110.96 $ 143.59 $ 107.50 $ 135.71 $ 157.70
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ITEM 6 – SELECTED FINANCIAL DATA
The selected consolidated financial data in this item should be read in conjunction with Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations and Item 8 - Financial Statements and Supplementary Data. The selected consolidated financial data (except managed assets) of Federated Hermes for the five years ended December 31, 2020 have been derived from Federated Hermes' audited Consolidated Financial Statements.
(in thousands, except per share data and managed assets) 2020 2019 2018 2017 2016
Statement of Income Data 1,2
Total Revenue $ 1,448,268 $ 1,326,894 $ 1,135,677 $ 1,102,924 $ 1,143,371
Operating Income 418,151 347,927 330,280 341,508 335,683
Net Income Including the Noncontrolling
Interests in Subsidiaries 3,4
336,022 277,125 222,299 294,901 221,514
Net Income Attributable to Federated Hermes, Inc. 3,4
326,364 272,339 220,297 291,341 208,919
Share Data Attributable to Federated Hermes, Inc.
Earnings Per Share – Basic 1,5
$ 3.25 $ 2.69 $ 2.18 $ 2.87 $ 2.03
Earnings Per share – Diluted 1,5
$ 3.23 $ 2.69 $ 2.18 $ 2.87 $ 2.03
Cash Dividends Per Share 6
$ 2.08 $ 1.08 $ 1.06 $ 1.00 $ 2.00
Weighted-average Shares Outstanding – Basic 96,419 97,259 96,949 97,411 99,116
Weighted-average Shares Outstanding – Diluted 96,419 97,259 96,949 97,412 99,117
Balance Sheet Data at Period End 1
Intangible Assets, net and Goodwill
$ 1,282,020 $ 1,220,762 $ 1,149,247 $ 736,915 $ 733,137
Total Assets 7
2,060,839 1,880,131 1,543,683 1,231,410 1,155,107
Long-Term Debt
75,000 100,000 135,000 170,000 165,750
Long-Term Deferred Tax Liability, net
187,937 165,382 148,164 117,620 176,686
Other Long-Term Liabilities 7
158,472 130,670 39,705 23,563 22,987
Redeemable Noncontrolling Interest in Subsidiaries 1
236,987 212,086 182,513 30,163 31,362
Federated Hermes, Inc. Shareholders' Equity 6
1,136,997 1,041,280 857,121 761,215 594,826
Managed Assets 1 (in millions)
As of Period End $ 619,430 $ 575,874 $ 459,860 $ 397,570 $ 365,908
Average for the Period 613,908 509,180 415,388 366,421 362,938
1 On July 2, 2018, Federated Hermes completed the HFML Acquisition, effective as of July 1, 2018.
2 During 2020 and 2016, Voluntary Yield-related Fee Waivers totaled $113.0 million and $87.9 million, respectively. These fee waivers were partially offset by related reductions in distribution expenses of $98.4 million and $65.8 million, respectively, such that the net negative pre-tax impact to Federated Hermes was $14.6 million and $22.0 million, respectively. See Item 1A - Risk Factors under the caption Specific Risk Factors - Risks Related to Interest Rates and Investment Performance - Potential Adverse Effects of Low Short-Term Interest Rates for additional information on Voluntary Yield-related Fee Waivers.
3 2018 includes a $29.0 million loss related to two derivative financial instruments associated with the HFML Acquisition.
4 2017 includes a $70.4 million reduction to the income tax provision resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act, thereby increasing net income.
5 2017 includes a $0.69 increase to earnings per share resulting from the revaluation of the net deferred tax liability due to the enactment of the Tax Act.
6 2020 and 2016 include a special dividend paid to shareholders of $1.00 per share in each year.
7 Total Assets for 2020 and 2019 include Right-of-Use Assets of $122.1 million and $100.5 million, respectively. Other Long-Term Liabilities for 2020 and 2019 include Long-Term Lease Liabilities of $121.9 million and $107.5 million, respectively.
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