Houlihan Lokey, Inc. (NYSE:HLI) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Analyst consensus is “Hold” for Houlihan Lokey, with five buys, four holds, and one sell among 10 covering brokerages. The average 12-month price target is $166.38, above the reported $137 share price.
• The company’s latest quarterly results missed expectations: EPS was $1.35 versus the $1.64 consensus, while revenue fell 15.6% year over year to $511 million, below estimates of $602.38 million.
• Houlihan Lokey declared a quarterly dividend of $0.70 per share, equivalent to an annualized $2.80 and a 2.0% yield. Institutional investors own 78.07% of the stock, while insiders hold 22.53%.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) have earned an average rating of "Hold" from the ten brokerages that are covering the stock, Marketbeat Ratings reports. One equities research analyst has rated the stock with a sell recommendation, four have issued a hold recommendation and five have issued a buy recommendation on the company. The average 12 month price target among brokerages that have updated their coverage on the stock in the last year is $166.3750.

A number of equities research analysts have recently issued reports on the stock. Morgan Stanley lowered their price target on shares of Houlihan Lokey from $187.00 to $177.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Houlihan Lokey in a research note on Friday, July 17th. Bank of America initiated coverage on shares of Houlihan Lokey in a report on Friday, July 10th. They set a "buy" rating and a $164.00 target price on the stock. UBS Group lowered their target price on shares of Houlihan Lokey from $161.00 to $147.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Finally, US Capital Advisors set a $187.00 price target on shares of Houlihan Lokey in a report on Thursday, July 9th.

Houlihan Lokey Stock Performance

Shares of NYSE HLI opened at $137.00 on Monday. The stock has a market cap of $9.46 billion, a PE ratio of 23.03, a price-to-earnings-growth ratio of 1.57 and a beta of 0.96. Houlihan Lokey has a fifty-two week low of $112.83 and a fifty-two week high of $211.78. The stock has a fifty day moving average of $133.55 and a 200-day moving average of $142.51.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.64 by ($0.29). Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.The company had revenue of $511.00 million for the quarter, compared to analysts' expectations of $602.38 million. During the same period last year, the company posted $2.14 EPS. The business's revenue for the quarter was down 15.6% on a year-over-year basis. On average, sell-side analysts predict that Houlihan Lokey will post 6.93 EPS for the current year.

Houlihan Lokey Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Tuesday, September 1st. Houlihan Lokey's dividend payout ratio (DPR) is 47.06%.

Insider Transactions at Houlihan Lokey

In related news, General Counsel Christopher M. Crain sold 1,000 shares of the business's stock in a transaction dated Thursday, September 10th. The stock was 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 $140,150. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Corporate insiders own 22.53% of the company's stock.

Institutional Trading of Houlihan Lokey

Several institutional investors and hedge funds have recently modified their holdings of the business. New Age Alpha Advisors LLC grew its stake in Houlihan Lokey by 169.1% in the 4th quarter. New Age Alpha Advisors LLC now owns 30,856 shares of the financial services provider's stock worth $5,375,000 after buying an additional 19,388 shares in the last quarter. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in shares of Houlihan Lokey during the 4th quarter valued at $1,942,000. Geode Capital Management LLC raised its position in shares of Houlihan Lokey by 6.4% during the 4th quarter. Geode Capital Management LLC now owns 1,418,549 shares of the financial services provider's stock valued at $247,133,000 after buying an additional 84,757 shares in the last quarter. Vaughan Nelson Investment Management L.P. bought a new stake in shares of Houlihan Lokey during the 1st quarter worth $35,728,000. Finally, Assenagon Asset Management S.A. lifted its holdings in shares of Houlihan Lokey by 7.5% during the 2nd quarter. Assenagon Asset Management S.A. now owns 126,476 shares of the financial services provider's stock worth $16,964,000 after acquiring an additional 8,871 shares during the last quarter. Hedge funds and other institutional investors 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, financial sponsors, governments and other institutions. Its principal activities include mergers and acquisitions, capital markets advisory, financial restructuring, and valuation and financial opinions.

The company advises clients on acquisitions, divestitures, strategic alternatives, recapitalizations, fairness opinions and other complex financial matters. Its restructuring business supports companies, creditors and other stakeholders dealing with distressed situations, while its valuation and financial advisory practice provides analyses related to financial reporting, tax, litigation and strategic planning.

Founded in 1972, Houlihan Lokey has expanded from its origins in the United States into an international advisory firm serving clients across North America, Europe, the Asia-Pacific region and other global markets.

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