BW Gestao de Investimentos Ltda. Cuts Stock Holdings in Houlihan Lokey, Inc. $HLI

Key Points

• BW Gestao de Investimentos trimmed its Houlihan Lokey stake by 18.8% in the fourth quarter, though institutional ownership of the stock remains high at 78.07% overall.
• Several analysts have recently adjusted their views on HLI, with price targets ranging from $160 to $184 and a consensus rating of Hold with an average target of $191.29.
• Houlihan Lokey reported weaker-than-expected quarterly results, missing EPS and revenue estimates, but it also raised its quarterly dividend to $0.70 per share from $0.60.

BW Gestao de Investimentos Ltda. decreased its holdings in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 18.8% during the fourth quarter, according to its most recent filing with the SEC. The firm owned 38,974 shares of the financial services provider's stock after selling 9,026 shares during the period. BW Gestao de Investimentos Ltda. owned 0.06% of Houlihan Lokey worth $6,789,000 at the end of the most recent reporting period.

A number of other institutional investors have also modified their holdings of the company. Royal Bank of Canada boosted its stake in Houlihan Lokey by 14.4% in the 1st quarter. Royal Bank of Canada now owns 49,584 shares of the financial services provider's stock worth $8,008,000 after purchasing an additional 6,253 shares in the last quarter. AQR Capital Management LLC increased its holdings in shares of Houlihan Lokey by 50.0% during the 1st quarter. AQR Capital Management LLC now owns 29,654 shares of the financial services provider's stock valued at $4,598,000 after purchasing an additional 9,891 shares in the last quarter. Millennium Management LLC purchased a new position in shares of Houlihan Lokey during the 1st quarter valued at approximately $18,964,000. Goldman Sachs Group Inc. increased its holdings in Houlihan Lokey by 5.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider's stock worth $67,143,000 after acquiring an additional 22,553 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new stake in Houlihan Lokey in the 2nd quarter worth $1,033,000. 78.07% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. UBS Group set a $160.00 target price on shares of Houlihan Lokey in a report on Thursday, May 7th. Weiss Ratings cut shares of Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, April 21st. The Goldman Sachs Group decreased their target price on shares of Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating on the stock in a research report on Wednesday, April 1st. Zacks Research cut shares of Houlihan Lokey from a "hold" rating to a "strong sell" rating in a research report on Wednesday, May 13th. Finally, Keefe, Bruyette & Woods cut their price target on shares of Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating on the stock in a research note on Thursday, May 7th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus price target of $191.29.

Insiders Place Their Bets

In other news, General Counsel Christopher M. Crain sold 500 shares of Houlihan Lokey stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $143.40, for a total transaction of $71,700.00. Following the completion of the transaction, the general counsel owned 500 shares of the company's stock, valued at $71,700. The trade was a 50.00% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Scott L. Beiser sold 6,265 shares of Houlihan Lokey stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total value of $941,378.90. Following the transaction, the chairman directly owned 6,265 shares of the company's stock, valued at $941,378.90. This trade represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 22.83% of the stock is currently owned by company insiders.

Houlihan Lokey Trading Down 0.8%

Shares of HLI opened at $140.53 on Tuesday. The company's 50 day simple moving average is $149.80 and its 200-day simple moving average is $164.01. Houlihan Lokey, Inc. has a 12-month low of $134.41 and a 12-month high of $211.78. The firm has a market cap of $9.71 billion, a PE ratio of 22.59, a price-to-earnings-growth ratio of 1.10 and a beta of 0.99.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share for the quarter, missing the consensus estimate of $1.79 by ($0.16). Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The company had revenue of $635.64 million for the quarter, compared to analyst estimates of $679.22 million. During the same period in the prior year, the business earned $1.96 earnings per share. Houlihan Lokey's revenue for the quarter was down 4.6% compared to the same quarter last year. As a group, equities research analysts forecast that Houlihan Lokey, Inc. will post 8.54 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 2.0%. This is an increase from Houlihan Lokey's previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Monday, June 1st. Houlihan Lokey's dividend payout ratio is 45.02%.

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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