Houlihan Lokey, Inc. (NYSE:HLI) Stock Has Average Target Price of $159.43

Key Points

• Analyst sentiment is mixed: Nine brokerages give Houlihan Lokey an average “Hold” rating, with an average 12-month price target of $159.43 versus the reported share price of $125.75.
• Recent results fell short of expectations: The company reported quarterly EPS of $1.35, below the $1.64 consensus estimate, while revenue declined 15.6% year over year to $511 million.
• Shareholders received a quarterly dividend of $0.70, equivalent to an annualized $2.80 payout and a 2.2% yield; institutional investors own approximately 78.07% of the stock.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) have received an average recommendation of "Hold" from the nine brokerages that are currently covering the firm, MarketBeat Ratings reports. One analyst has rated the stock with a sell rating, three have assigned a hold rating and five have assigned a buy rating to the company. The average 1-year price objective among analysts that have issued a report on the stock in the last year is $159.43.

A number of research firms have commented on HLI. Keefe, Bruyette & Woods lowered their price objective on Houlihan Lokey from $160.00 to $153.00 and set an "outperform" rating on the stock in a research note on Thursday, July 30th. Weiss Ratings reiterated a "hold (c)" rating on shares of Houlihan Lokey in a research report on Friday, July 17th. Zacks Research lowered Houlihan Lokey from a "hold" rating to a "strong sell" rating in a report on Friday, August 21st. The Goldman Sachs Group decreased their price target 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, Wall Street Zen downgraded Houlihan Lokey from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th.

Houlihan Lokey Stock Up 0.4%

NYSE HLI opened at $125.75 on Friday. The firm has a 50-day moving average price of $130.08 and a two-hundred day moving average price of $139.59. Houlihan Lokey has a 12-month low of $112.83 and a 12-month high of $204.18. The company has a market capitalization of $8.68 billion, a P/E ratio of 21.13, a P/E/G ratio of 1.44 and a beta of 1.00.

Houlihan Lokey (NYSE:HLI - Get Free Report) last announced its earnings results on Wednesday, July 29th. The financial services provider reported $1.35 EPS for the quarter, missing the consensus estimate of $1.64 by ($0.29). Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.The business had revenue of $511.00 million for the quarter, compared to the consensus estimate of $602.38 million. During the same period in the prior year, the business posted $2.14 earnings per share. The firm's revenue for the quarter was down 15.6% compared to the same quarter last year. Equities analysts expect that Houlihan Lokey will post 6.93 EPS for the current year.

Houlihan Lokey Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st were issued a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 2.2%. The ex-dividend date of this dividend was Tuesday, September 1st. Houlihan Lokey's dividend payout ratio (DPR) is currently 47.06%.

Insider Buying and Selling

In other news, General Counsel Christopher M. Crain sold 1,000 shares of the business's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $140.15, for a total value 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. The trade was a 50.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 22.53% of the stock is currently owned by corporate insiders.

Institutional Trading of Houlihan Lokey

Several large investors have recently made changes to their positions in the company. Royal Bank of Canada lifted its stake in Houlihan Lokey by 2.8% during the first quarter. Royal Bank of Canada now owns 1,751,495 shares of the financial services provider's stock worth $251,551,000 after purchasing an additional 48,126 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in shares of Houlihan Lokey by 15.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 616,519 shares of the financial services provider's stock valued at $88,540,000 after purchasing an additional 81,182 shares during the last quarter. Van Berkom & Associates Inc. raised its holdings in shares of Houlihan Lokey by 7.6% during the 1st quarter. Van Berkom & Associates Inc. now owns 405,978 shares of the financial services provider's stock worth $58,307,000 after buying an additional 28,600 shares in the last quarter. Eventide Asset Management LLC raised its holdings in shares of Houlihan Lokey by 6.5% during the 4th quarter. Eventide Asset Management LLC now owns 234,404 shares of the financial services provider's stock worth $40,878,000 after buying an additional 14,356 shares in the last quarter. Finally, Vaughan Nelson Investment Management L.P. bought a new stake in shares of Houlihan Lokey during the 1st quarter worth $35,728,000. Institutional investors and hedge funds own 78.07% of the company's stock.

Houlihan Lokey Company Profile

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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