Hamilton Lane Inc. (NASDAQ:HLNE) Receives Consensus Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts rate Hamilton Lane a consensus “Moderate Buy,” with six buy ratings, one strong-buy rating and two holds. The average 12-month price target is $131.57, above the stock’s reported price of $103.06.
• Hamilton Lane exceeded quarterly expectations, reporting $1.94 in EPS versus $1.53 expected and revenue of $275.33 million, up 56.5% year over year.
• Insiders made significant purchases, while institutional investors own 97.4% of the stock. The company also authorized a $100 million share repurchase program and declared a quarterly dividend of $0.60 per share.

Shares of Hamilton Lane Inc. (NASDAQ:HLNE - Get Free Report) have been given an average rating of "Moderate Buy" by the nine brokerages that are currently covering the company, MarketBeat reports. Two research analysts have rated the stock with a hold rating, six have issued a buy rating and one has assigned a strong buy rating to the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $131.5714.

A number of equities analysts have recently issued reports on HLNE shares. Zacks Research upgraded shares of Hamilton Lane from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. JPMorgan Chase & Co. lowered their price target on shares of Hamilton Lane from $166.00 to $148.00 and set an "overweight" rating for the company in a report on Monday, May 18th. Keefe, Bruyette & Woods boosted their price objective on shares of Hamilton Lane from $105.00 to $116.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 5th. Oppenheimer reduced their price objective on Hamilton Lane from $182.00 to $181.00 and set an "outperform" rating on the stock in a report on Thursday, August 27th. Finally, BMO Capital Markets set a $94.00 price objective on Hamilton Lane in a report on Monday, July 13th.

Insider Buying and Selling at Hamilton Lane

In other news, COO Andrea Kramer purchased 1,283 shares of the firm's stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average price of $77.46 per share, for a total transaction of $99,381.18. Following the completion of the acquisition, the chief operating officer directly owned 87,350 shares in the company, valued at approximately $6,766,131. The trade was a 1.49% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Hartley Rogers acquired 38,290 shares of the stock in a transaction that occurred on Thursday, June 11th. The stock was purchased at an average price of $78.49 per share, with a total value of $3,005,382.10. Following the completion of the transaction, the chairman owned 93,756 shares of the company's stock, valued at approximately $7,358,908.44. This trade represents a 69.03% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 23.99% of the company's stock.

Institutional Investors Weigh In On Hamilton Lane

Several institutional investors have recently modified their holdings of HLNE. California State Teachers Retirement System lifted its holdings in Hamilton Lane by 7,651.1% in the second quarter. California State Teachers Retirement System now owns 3,798,581 shares of the company's stock valued at $299,442,000 after buying an additional 3,749,574 shares during the period. Wasatch Advisors LP boosted its stake in Hamilton Lane by 15.8% in the first quarter. Wasatch Advisors LP now owns 1,751,596 shares of the company's stock valued at $174,109,000 after acquiring an additional 239,397 shares during the last quarter. Invesco Ltd. grew its holdings in Hamilton Lane by 7.3% during the 3rd quarter. Invesco Ltd. now owns 1,534,836 shares of the company's stock worth $206,880,000 after acquiring an additional 104,977 shares during the period. State Street Corp grew its holdings in Hamilton Lane by 1.4% during the 4th quarter. State Street Corp now owns 1,293,854 shares of the company's stock worth $174,458,000 after acquiring an additional 18,296 shares during the period. Finally, Principal Financial Group Inc. lifted its stake in shares of Hamilton Lane by 1.7% in the 1st quarter. Principal Financial Group Inc. now owns 1,103,913 shares of the company's stock valued at $109,725,000 after purchasing an additional 18,063 shares during the period. Institutional investors and hedge funds own 97.40% of the company's stock.

Hamilton Lane Stock Performance

Hamilton Lane stock opened at $103.06 on Monday. The stock has a 50-day simple moving average of $93.19 and a 200 day simple moving average of $93.78. The stock has a market capitalization of $5.72 billion, a price-to-earnings ratio of 15.71 and a beta of 1.19. The company has a quick ratio of 3.49, a current ratio of 3.49 and a debt-to-equity ratio of 0.16. Hamilton Lane has a 12-month low of $71.88 and a 12-month high of $155.66.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) last issued its quarterly earnings data on Tuesday, August 4th. The company reported $1.94 EPS for the quarter, topping analysts' consensus estimates of $1.53 by $0.41. The firm had revenue of $275.33 million for the quarter, compared to analyst estimates of $221.94 million. Hamilton Lane had a net margin of 32.14% and a return on equity of 25.10%. The company's revenue was up 56.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.47 EPS. On average, research analysts anticipate that Hamilton Lane will post 7.25 earnings per share for the current fiscal year.

Hamilton Lane declared that its Board of Directors has initiated a stock repurchase plan on Thursday, May 21st that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 2% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's leadership believes its stock is undervalued.

Hamilton Lane Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Monday, September 21st will be given a dividend of $0.60 per share. The ex-dividend date is Monday, September 21st. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.3%. Hamilton Lane's payout ratio is presently 36.59%.

About Hamilton Lane

Hamilton Lane is a global private markets investment management firm specializing in the full spectrum of private equity and credit strategies. The company partners with institutional investors and wealth managers to design, implement and manage customized portfolios in primary fund investing, secondary market transactions and direct co-investment opportunities. By combining investment selection, portfolio construction and ongoing monitoring, Hamilton Lane seeks to optimize risk-adjusted returns across diverse private markets exposures.

Founded in 1991, Hamilton Lane has developed a track record of investment and advisory services in private markets.

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