Argent Capital Management LLC Lowers Holdings in Houlihan Lokey, Inc. $HLI

Key Points

• Argent Capital Management reduced its Houlihan Lokey stake by 14.3% in the first quarter, selling 33,673 shares and retaining 202,422 shares valued at approximately $29.1 million. Institutional investors still own about 78.1% of HLI.
• Houlihan Lokey’s fiscal first-quarter results missed expectations, with adjusted EPS of $1.35 versus $1.64 expected and revenue of $511 million versus $602.4 million forecast; revenue fell 15.6% year over year.
• Analysts remain cautiously positive, with the stock carrying a “Moderate Buy” consensus and average target of $174.62 despite several target cuts. The company also declared a $0.70 quarterly dividend, equivalent to a 2.2% annualized yield.

Argent Capital Management LLC decreased its stake in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 14.3% in the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 202,422 shares of the financial services provider's stock after selling 33,673 shares during the period. Argent Capital Management LLC owned 0.29% of Houlihan Lokey worth $29,072,000 at the end of the most recent reporting period.

A number of other large investors also recently modified their holdings of the company. Robinhood Asset Management LLC acquired a new stake in Houlihan Lokey during the fourth quarter worth about $6,862,000. Pier Capital LLC raised its position in shares of Houlihan Lokey by 62.3% during the 4th quarter. Pier Capital LLC now owns 44,000 shares of the financial services provider's stock worth $7,664,000 after purchasing an additional 16,894 shares during the period. M&T Bank Corp bought a new stake in shares of Houlihan Lokey in the 4th quarter worth approximately $4,467,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. acquired a new position in Houlihan Lokey during the 4th quarter valued at approximately $1,942,000. Finally, Fenimore Asset Management Inc grew its stake in Houlihan Lokey by 16.2% during the 4th quarter. Fenimore Asset Management Inc now owns 123,672 shares of the financial services provider's stock worth $21,542,000 after buying an additional 17,199 shares during the last quarter. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Houlihan Lokey

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable September 15 to shareholders of record September 1. The dividend implies an annualized yield of approximately 2.2%, providing shareholder income.
• Positive Sentiment: Morgan Stanley maintained an “overweight” rating despite lowering its price target to $177 from $187, while Keefe, Bruyette & Woods retained an “outperform” rating and reduced its target to $153 from $160. Both targets remain substantially above the recent trading level, suggesting analysts expect a recovery.
• Neutral Sentiment: UBS lowered its price target to $147 from $161 and maintained a “neutral” rating. The revised target still indicates upside, but the cut reflects more cautious expectations for the company’s valuation or near-term performance. Houlihan Lokey Given New $147 Price Target at UBS Group
• Negative Sentiment: Fiscal Q1 earnings were well below expectations: adjusted EPS was $1.35 versus the $1.64 consensus, and revenue was $511 million versus $602.38 million expected. EPS also fell from $2.14 a year earlier, while revenue declined 15.6% year over year. The sizable earnings and revenue misses are the primary catalyst weighing on HLI. Houlihan Lokey Misses Q1 Earnings and Revenue Estimates

Insider Activity at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $150.26, for a total value of $941,378.90. Following the completion of the transaction, the chairman owned 6,265 shares of the company's stock, valued at approximately $941,378.90. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 22.83% of the company's stock.

Analyst Ratings Changes

Several analysts recently weighed in on HLI shares. UBS Group cut their price objective on shares of Houlihan Lokey from $161.00 to $147.00 and set a "neutral" rating on the stock in a research report on Thursday. Weiss Ratings reiterated a "hold (c)" rating on shares of Houlihan Lokey in a research report on Friday, July 17th. Zacks Research raised Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. The Goldman Sachs Group cut their target price on Houlihan Lokey from $171.00 to $148.00 and set a "buy" rating on the stock in a research note on Thursday. Finally, Morgan Stanley decreased their price target on Houlihan Lokey from $187.00 to $177.00 and set an "overweight" rating for the company in a research note on Thursday. Five research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $174.62.

Houlihan Lokey Stock Performance

Houlihan Lokey stock opened at $125.21 on Friday. The firm has a market cap of $8.65 billion, a price-to-earnings ratio of 21.04, a price-to-earnings-growth ratio of 1.09 and a beta of 0.95. Houlihan Lokey, Inc. has a 1 year low of $112.83 and a 1 year high of $211.78. The firm's 50 day moving average price is $139.40 and its two-hundred day moving average price is $152.13.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share 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 company 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 earned $2.14 earnings per share. The business's revenue was down 15.6% compared to the same quarter last year. As a group, equities analysts predict that Houlihan Lokey, Inc. will post 7.91 EPS for the current fiscal year.

Houlihan Lokey Dividend Announcement

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

Houlihan Lokey Company Profile

Houlihan Lokey, Inc is a global investment bank and financial services firm founded in 1972 and headquartered in Los Angeles, California. The company specializes in advisory services across a broad range of transaction types and financial matters. Since its founding, Houlihan Lokey has grown to serve corporations, financial sponsors, and government entities worldwide, providing expertise in complex and high-stakes engagements.

The firm's core service offerings include mergers and acquisitions advisory, capital markets advisory, financial restructuring and distressed M&A, and valuation and fairness opinions.

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