Houlihan Lokey, Inc. (NYSE:HLI) Stock Now Rated "Moderate Buy" by Sell-Side Brokerages

Key Points

• Analysts have a “Moderate Buy” consensus on Houlihan Lokey, with seven buy ratings and five holds. The average 12-month price target is $160.44, above the reported opening price of $146.37.
• The company exceeded quarterly expectations, reporting $1.85 in EPS versus the $1.63 consensus and $692 million in revenue versus $625.88 million expected. Revenue increased 4.9% year over year.
• Houlihan Lokey declared a quarterly dividend of $0.70 per share, equivalent to an annualized $2.80 payout and a 1.9% yield; institutional investors own 78.07% of the stock.

Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twelve ratings firms that are covering the company, Marketbeat reports. Five analysts have rated the stock with a hold rating and seven have issued a buy rating on the company. The average 12 month price target among analysts that have issued ratings on the stock in the last year is $160.44.

HLI has been the topic of a number of analyst reports. Weiss Ratings restated 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 on the stock in a research report on Thursday, July 30th. UBS Group increased their price objective on shares of Houlihan Lokey from $147.00 to $154.00 and gave the company a "neutral" rating in a research note on Wednesday, October 7th. Morgan Stanley dropped their target price on shares of Houlihan Lokey from $177.00 to $165.00 and set an "overweight" rating on the stock in a research report on Thursday, October 8th. Finally, JPMorgan Chase & Co. boosted their target price on Houlihan Lokey from $147.00 to $153.00 and gave the stock a "neutral" rating in a research note on Thursday, October 29th.

Houlihan Lokey Stock Performance

Shares of Houlihan Lokey stock opened at $146.37 on Tuesday. Houlihan Lokey has a 52 week low of $112.83 and a 52 week high of $195.06. The stock has a 50 day moving average price of $131.56 and a two-hundred day moving average price of $144.76. The stock has a market capitalization of $10.11 billion, a PE ratio of 24.56, a price-to-earnings-growth ratio of 1.79 and a beta of 1.00.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $1.85 EPS for the quarter, beating the consensus estimate of $1.63 by $0.22. Houlihan Lokey had a return on equity of 19.97% and a net margin of 15.78%. The firm had revenue of $692.00 million during the quarter, compared to the consensus estimate of $625.88 million. During the same quarter in the previous year, the company posted $1.84 earnings per share. The company's quarterly revenue was up 4.9% on a year-over-year basis. Research analysts forecast that Houlihan Lokey will post 7.18 EPS for the current year.

Houlihan Lokey Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date of this dividend is Tuesday, December 1st. Houlihan Lokey's dividend payout ratio (DPR) is presently 46.98%.

Insider Buying and Selling

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

Institutional Investors Weigh In On Houlihan Lokey

Several large investors have recently made changes to their positions in the business. SBI Securities Co. Ltd. boosted its holdings in shares of Houlihan Lokey by 400.0% in the 3rd quarter. SBI Securities Co. Ltd. now owns 210 shares of the financial services provider's stock worth $27,000 after buying an additional 168 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC increased its holdings in Houlihan Lokey by 103.4% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 236 shares of the financial services provider's stock worth $34,000 after buying an additional 120 shares during the last quarter. Provenance Wealth Advisors LLC purchased a new stake in Houlihan Lokey during the third quarter worth about $34,000. Harbor Investment Advisory LLC bought a new stake in Houlihan Lokey in the second quarter worth about $55,000. Finally, Versant Capital Management Inc raised its position in Houlihan Lokey by 91.0% in the second quarter. Versant Capital Management Inc now owns 510 shares of the financial services provider's stock worth $68,000 after acquiring an additional 243 shares during the period. 78.07% of the stock is owned by hedge funds and other institutional investors.

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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