Zacks Research Upgrades Houlihan Lokey (NYSE:HLI) to "Hold"

Key Points

• Zacks Research upgraded Houlihan Lokey from “strong sell” to “hold,” while broader analyst sentiment remains “Moderate Buy,” with an average price target of $161.38.
• Shares opened at $124.93, below their 50-day and 200-day moving averages. The company’s latest quarterly results missed expectations, with EPS of $1.35 versus $1.64 estimated and revenue down 15.6% year over year.
• Institutional investors own 78.07% of the stock, while insiders hold 22.53%; a company general counsel recently sold 1,000 shares at an average price of $140.15.

Houlihan Lokey (NYSE:HLI - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a report released on Tuesday, Zacks reports.

Other research analysts have also recently issued research reports about the stock. Wall Street Zen cut shares of Houlihan Lokey from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Morgan Stanley decreased their price objective on shares of Houlihan Lokey from $177.00 to $165.00 and set an "overweight" rating for the company in a research report on Thursday, October 8th. Keefe, Bruyette & Woods lowered their target price on shares of Houlihan Lokey from $160.00 to $153.00 and set an "outperform" rating on the stock in a research note on Thursday, July 30th. UBS Group increased their target price on shares of Houlihan Lokey from $147.00 to $154.00 and gave the stock a "neutral" rating in a research note on Wednesday, October 7th. Finally, Citigroup upgraded Houlihan Lokey to an "outperform" rating in a research report on Friday, October 9th. Seven investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, Houlihan Lokey presently has an average rating of "Moderate Buy" and an average target price of $161.38.

Houlihan Lokey Price Performance

Shares of NYSE HLI opened at $124.93 on Tuesday. The stock has a market capitalization of $8.63 billion, a price-to-earnings ratio of 21.00, a PEG ratio of 1.69 and a beta of 1.00. The firm's 50 day simple moving average is $130.23 and its 200-day simple moving average is $139.26. Houlihan Lokey has a 12 month low of $112.83 and a 12 month high of $204.18.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.64 by ($0.29). Houlihan Lokey had a net margin of 16.10% and a return on equity of 20.20%. The firm had revenue of $511.00 million during the quarter, compared to analyst estimates of $602.38 million. During the same quarter in the prior year, the firm earned $2.14 earnings per share. The business's revenue for the quarter was down 15.6% on a year-over-year basis. Analysts anticipate that Houlihan Lokey will post 6.91 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Houlihan Lokey news, General Counsel Christopher M. Crain sold 1,000 shares of the company's stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $140.15, for a total transaction of $140,150.00. Following the completion of the transaction, the general counsel directly owned 1,000 shares in the company, valued at approximately $140,150. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 22.53% of the company's stock.

Institutional Trading of Houlihan Lokey

Several institutional investors have recently modified their holdings of HLI. Krilogy Financial LLC raised its holdings in Houlihan Lokey by 15.3% in the 3rd quarter. Krilogy Financial LLC now owns 4,233 shares of the financial services provider's stock valued at $552,000 after acquiring an additional 563 shares during the last quarter. Salvus Wealth Management LLC acquired a new position in shares of Houlihan Lokey during the 3rd quarter worth approximately $2,334,000. Wedmont Private Capital acquired a new position in shares of Houlihan Lokey during the 3rd quarter worth approximately $252,000. Diversified Management Inc. acquired a new position in shares of Houlihan Lokey during the 3rd quarter worth approximately $2,294,000. Finally, GAMMA Investing LLC grew its position in shares of Houlihan Lokey by 53.1% in the third quarter. GAMMA Investing LLC now owns 12,464 shares of the financial services provider's stock valued at $1,575,000 after purchasing an additional 4,324 shares in the last quarter. Institutional investors and hedge funds own 78.07% of the company's stock.

About Houlihan Lokey

Houlihan Lokey, Inc is a global investment bank that provides financial advisory services to corporations, institutions, governments and other organizations. The firm focuses on complex strategic, financial and restructuring matters and is known for its independent advisory model.

Its principal businesses include corporate finance, financial restructuring, and financial and valuation advisory. Services include mergers and acquisitions advice, capital-raising and other strategic transactions, restructuring and liability management, fairness opinions, solvency analysis, financial reporting valuations, and transaction opinions.

Founded in 1972, Houlihan Lokey serves clients through offices across North America, Europe, the Asia-Pacific region and the Middle East.

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