JPMorgan Chase & Co. Forecasts Strong Price Appreciation for Houlihan Lokey (NYSE:HLI) Stock

Key Points

• JPMorgan raised Houlihan Lokey’s price target from $147 to $153 while maintaining a neutral rating, implying about 9.55% upside from the stock’s $139.66 price. Analysts overall assign the stock a “Moderate Buy” rating with an average target of $160.44.
• Houlihan Lokey reported quarterly results above expectations, with EPS of $1.85 versus $1.63 expected and revenue of $692 million versus $625.88 million forecast. Revenue rose 4.9% year over year.
• The stock gained 1.7% in trading, while institutional investors continued to hold significant ownership at 78.07%; company insiders own 22.53% of shares.

Houlihan Lokey (NYSE:HLI - Get Free Report) had its target price raised by equities research analysts at JPMorgan Chase & Co. from $147.00 to $153.00 in a research report issued on Thursday, Benzinga reports. The firm presently has a "neutral" rating on the financial services provider's stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 9.55% from the company's current price.

Several other research analysts also recently commented on HLI. Weiss Ratings reiterated a "hold (c)" rating on shares of Houlihan Lokey in a report on Thursday, October 15th. Keefe, Bruyette & Woods dropped their price target on shares of Houlihan Lokey from $160.00 to $153.00 and set an "outperform" rating for the company in a research report on Thursday, July 30th. Citizens Jmp raised Houlihan Lokey from a "market perform" rating to an "outperform" rating and set a $175.00 target price on the stock in a research note on Friday, October 9th. The Goldman Sachs Group cut their price objective on Houlihan Lokey from $171.00 to $148.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. Finally, BMO Capital Markets cut their price objective on shares of Houlihan Lokey from $160.00 to $145.00 and set an "outperform" rating on the stock in a report on Monday, August 3rd. Seven analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $160.44.

Houlihan Lokey Stock Up 1.7%

NYSE:HLI traded up $2.28 during trading hours on Thursday, hitting $139.66. 1,653,137 shares of the company traded hands, compared to its average volume of 733,544. The firm's 50-day simple moving average is $130.82 and its 200-day simple moving average is $145.36. Houlihan Lokey has a one year low of $112.83 and a one year high of $202.49. The company has a market cap of $9.64 billion, a PE ratio of 23.47, a PEG ratio of 1.71 and a beta of 1.00.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its earnings results on Wednesday, October 28th. The financial services provider reported $1.85 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.63 by $0.22. Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%. The business had revenue of $692.00 million during the quarter, compared to the consensus estimate of $625.88 million. During the same period last year, the business posted $1.84 earnings per share. The business's revenue for the quarter was up 4.9% on a year-over-year basis. As a group, equities research analysts expect that Houlihan Lokey will post 6.92 EPS for the current year.

Insider Transactions at Houlihan Lokey

In other news, General Counsel Christopher M. Crain sold 1,000 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $140.15, for a total value of $140,150.00. Following the completion of the sale, the general counsel owned 1,000 shares of the company's stock, valued at $140,150. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Company insiders own 22.53% of the company's stock.

Hedge Funds Weigh In On Houlihan Lokey

Several institutional investors and hedge funds have recently modified their holdings of HLI. Squarepoint Ops LLC increased its holdings in shares of Houlihan Lokey by 356.7% in the 2nd quarter. Squarepoint Ops LLC now owns 78,512 shares of the financial services provider's stock valued at $10,531,000 after purchasing an additional 61,321 shares in the last quarter. Public Employees Retirement System of Ohio acquired a new stake in shares of Houlihan Lokey in the second quarter valued at about $2,815,000. VELA Investment Management LLC lifted its stake in shares of Houlihan Lokey by 63.1% in the second quarter. VELA Investment Management LLC now owns 26,300 shares of the financial services provider's stock valued at $3,528,000 after purchasing an additional 10,170 shares during the period. Whittier Trust Co. boosted its holdings in Houlihan Lokey by 10.3% during the first quarter. Whittier Trust Co. now owns 78,222 shares of the financial services provider's stock worth $11,011,000 after buying an additional 7,294 shares in the last quarter. Finally, Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in Houlihan Lokey during the first quarter worth about $3,018,000. Hedge funds and other institutional investors own 78.07% of the company's stock.

Key Headlines Impacting Houlihan Lokey

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Earnings and revenue beat expectations: HLI reported quarterly earnings of $1.85 per share, above the $1.63 consensus estimate cited by MarketBeat, while revenue reached $692 million, exceeding the $625.88 million forecast. Revenue increased 4.9% year over year, and EPS was slightly above the $1.84 reported in the prior-year quarter. Houlihan Lokey Second-Quarter Earnings Results
• Positive Sentiment: Potential undervaluation supports the shares: An analysis following the results suggests Houlihan Lokey could be approximately 11% undervalued based on its second-quarter performance, giving investors a possible valuation-based reason to buy after the earnings release. Houlihan Lokey Could Be 11% Undervalued
• Positive Sentiment: Dividend reaffirmed: The company declared a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and a yield of about 2%. The payment is scheduled for December 15 for shareholders of record December 1, reinforcing HLI’s shareholder-return profile.
• Neutral Sentiment: Investors are assessing forward commentary: Multiple earnings-call reports and transcripts are focused on management’s outlook and operating metrics after the beat. While the results were strong, the relatively modest year-over-year revenue growth means future performance will depend on continued deal activity and execution. Houlihan Lokey Q2 2027 Earnings Call Transcript

About Houlihan Lokey

Houlihan Lokey, Inc is a global investment banking and financial advisory firm that provides services to corporations, institutions, financial sponsors and governments. The company advises clients on mergers and acquisitions, capital raising, financial restructuring and other strategic and corporate finance matters.

Its business also includes valuation and financial opinions, including fairness opinions, solvency opinions and other transaction-related analyses. Houlihan Lokey serves clients across a range of industries, with particular expertise in areas such as technology, media and telecommunications; financial services; healthcare; industrials; consumer products and services; and energy and natural resources.

Founded in 1972 by Roger Houlihan and O.

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