Form 4: Federated Hermes VP Sells Over 5,900 Shares Under Pre-Arranged Plan

Stephen Van Meter, VP and Chief Compliance Officer of Federated Hermes, Inc., reported the sale of 5,921 shares of Class B Common Stock for approximately $250,000 under a Rule 10b5-1 trading plan, effective May 28, 2025.

Summary

• Stephen Van Meter, VP, Chief Compliance Officer of Federated Hermes, Inc. (FHI), reported a transaction involving the sale of company stock.
• On May 28, 2025, Mr. Van Meter sold 5,921 shares of Federated Hermes, Inc. Class B Common Stock.
• The shares were sold at a weighted average price of $42.2594 per share.
• The total value of the transaction is approximately $249,999.97 (5,921 shares * $42.2594/share).
• Following this transaction, Mr. Van Meter beneficially owns 30,026 shares of Class B Common Stock.
• The transaction was made pursuant to a contract, instruction, or written plan for the sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c), indicating it was a pre-arranged trading plan.
• The shares were sold in 25 separate transactions at prices ranging from $42.13 to $42.48 inclusive.

Sentiment

Score: 5

Explanation: A neutral score as this is a routine insider transaction under a pre-arranged plan, which typically has limited direct impact on company sentiment. While it's a sale, the 10b5-1 plan mitigates negative interpretations.

Positives

• The transaction was conducted under a Rule 10b5-1(c) plan, which indicates the sale was pre-scheduled and not based on new, non-public information, reducing concerns about opportunistic insider selling.

Negatives

• An insider sale, even if pre-arranged, reduces the direct ownership stake of a key executive in the company, which can sometimes be perceived negatively by the market.

Future Outlook

This Form 4 filing does not contain any forward-looking statements or guidance regarding the company's future outlook.

Management Comments

• "The price reported in Column 4 is a weighted average price. These shares were sold in 25 transactions at prices ranging from $42.13 to $42.48 inclusive."
• "The reporting person undertakes to provide to Federated Hermes, Inc., any security holder of Federated Hermes, Inc. or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote."

Industry Context

This Form 4 filing details an insider stock transaction, which is a routine disclosure in the financial industry. Such transactions are common among executives for personal financial planning, especially when conducted under pre-arranged Rule 10b5-1 plans, and do not typically reflect broader industry trends unless they are part of a widespread pattern of insider selling across multiple firms.

Comparison to Industry Standards

• This document reports a standard insider transaction (Form 4) as required by the SEC, aligning with typical corporate governance and transparency practices in the financial services industry.
• The sale of shares by an executive under a Rule 10b5-1 plan is a common practice for personal liquidity and diversification among executives in publicly traded companies, consistent with industry norms.

Stakeholder Impact

• Shareholders: May observe a slight reduction in insider ownership, though the Rule 10b5-1 plan suggests a pre-planned, non-event-driven sale, which typically has minimal impact on shareholder perception.

Next Steps

• The reporting person undertakes to provide full information regarding the number of shares sold at each separate price within the reported range upon request by Federated Hermes, Inc., any security holder, or the SEC staff.

Key Dates

Recommendation

Keywords

Federated Hermes, FHI, Insider Trading, Form 4, Stock Sale, Stephen Van Meter, Compliance Officer, Rule 10b5-1, Class B Common Stock