Federated Hermes Increases Stake in Hubbell with 6,920 Share Purchase

Federated Hermes Inc. has raised its investment in Hubbell Inc. (NYSE: HUBB) by 8.5% during the second quarter of 2023, as revealed in a recent Form 13F filing with the Securities and Exchange Commission (SEC). Following the acquisition of 6,920 shares, Federated Hermes now holds 88,290 shares of the industrial products company, valued at approximately $36.06 million as of the quarter’s end.

This move is part of a broader trend among institutional investors, with several firms adjusting their stakes in Hubbell. For instance, Central Pacific Bank Trust Division entered the market with a new investment valued at $29,000. Cullen Frost Bankers Inc. significantly increased its holdings by 400%, acquiring an additional 68 shares to reach a total of 85 shares, now worth $35,000. Similarly, Johnson Financial Group Inc. boosted its position by 185.4%, owning 137 shares valued at $56,000 after purchasing more shares in the last quarter.

Other notable transactions include Ransom Advisory Ltd, which bought a new stake in Hubbell for about $53,000, and Groupe la Francaise, which invested approximately $57,000 earlier this year. Collectively, institutional investors control approximately 88.16% of Hubbell’s stock.

Hubbell’s Market Performance and Dividend Announcement

On Tuesday, shares of Hubbell opened at $441.25. The company has experienced a dramatic price range over the past year, with a low of $299.42 and a high of $484.26. With a market capitalization of $23.45 billion, Hubbell boasts a price-to-earnings (P/E) ratio of 27.37 and a P/E to growth (P/E/G) ratio of 2.43. Its current ratio stands at 1.36, quick ratio at 0.85, and a debt-to-equity ratio of 0.28. The company’s fifty-day simple moving average is $435.10, while the two-hundred-day average is $425.16.

In another significant development, Hubbell announced an increase in its quarterly dividend. Shareholders will receive $1.42 per share, payable on December 15, 2023, to those on record as of November 28, 2023. This marks an increase from the previous dividend of $1.32 per share, representing an annualized dividend of $5.68 and a yield of 1.3%. The company’s payout ratio is currently 35.24%.

Analyst Ratings and Insider Transactions

Several analysts have recently updated their ratings for Hubbell shares. Wells Fargo & Company raised its price target from $490.00 to $500.00, assigning an “overweight” rating. Wall Street Zen upgraded its rating from “buy” to “strong-buy.” Meanwhile, JPMorgan Chase & Co. increased its target from $417.00 to $458.00, maintaining a “neutral” stance. Barclays also adjusted its price objective to $456.00, providing an “equal weight” rating.

Currently, four analysts have rated Hubbell as a “buy,” while three have assigned a “hold” rating. According to MarketBeat.com, the stock holds an average rating of “Moderate Buy” with a target price of $474.00.

In insider trading news, Mark Eugene Mikes, a company insider, sold 2,470 shares on November 5, 2023, at an average price of $466.50, totaling $1,152,255.00. After this transaction, he retains 4,785 shares valued at about $2,232,202.50, reflecting a 34.05% decrease in his holdings. Another insider, Alyssa R. Flynn, sold 2,011 shares on November 3, 2023, at an average price of $470.32, amounting to $945,813.52. Following this sale, Flynn holds 3,243 shares worth approximately $1,525,247.76.

As the company continues to attract institutional investments and analysts maintain positive outlooks, Hubbell remains a significant player in the industrial products sector, with a robust financial foundation and a commitment to shareholder returns.