Engineers Gate Manager LP Decreases Stock Position in Houlihan Lokey, Inc. $HLI

Key Points

• Engineers Gate Manager LP cut its Houlihan Lokey stake by 45.1% in the second quarter, selling 16,336 shares and retaining 19,909 shares valued at approximately $2.67 million. Institutional investors collectively own 78.07% of HLI.
• Analyst sentiment is mixed: HLI has an overall “Hold” rating and an average price target of $166.38, while recent analysts lowered targets and Zacks downgraded the stock to “strong sell.”
• Houlihan Lokey’s latest quarter fell short of expectations, with EPS of $1.35 versus $1.64 expected and revenue down 15.6% year over year to $511 million. The company continues to pay a quarterly dividend of $0.70 per share, representing a 2.0% yield.

Engineers Gate Manager LP trimmed its holdings in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 45.1% during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 19,909 shares of the financial services provider's stock after selling 16,336 shares during the period. Engineers Gate Manager LP's holdings in Houlihan Lokey were worth $2,670,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. California State Teachers Retirement System lifted its holdings in Houlihan Lokey by 13,041.9% in the 2nd quarter. California State Teachers Retirement System now owns 8,459,445 shares of the financial services provider's stock valued at $1,134,665,000 after purchasing an additional 8,395,075 shares in the last quarter. Norges Bank purchased a new stake in shares of Houlihan Lokey during the fourth quarter worth about $115,478,000. Vaughan Nelson Investment Management L.P. purchased a new stake in shares of Houlihan Lokey during the first quarter worth about $35,728,000. Ancora Advisors LLC acquired a new position in shares of Houlihan Lokey in the second quarter valued at approximately $28,750,000. Finally, Assenagon Asset Management S.A. acquired a new position in shares of Houlihan Lokey in the first quarter valued at approximately $16,890,000. Institutional investors and hedge funds own 78.07% of the company's stock.

Analyst Upgrades and Downgrades

HLI has been the topic of a number of analyst reports. Keefe, Bruyette & Woods decreased their target price 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. Wolfe Research upgraded Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a report on Thursday, July 9th. Zacks Research lowered Houlihan Lokey from a "hold" rating to a "strong sell" rating in a research note on Friday, August 21st. UBS Group decreased their price objective on Houlihan Lokey from $161.00 to $147.00 and set a "neutral" rating on the stock in a report on Thursday, July 30th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Houlihan Lokey in a report on Friday, July 17th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $166.38.

Houlihan Lokey Stock Performance

HLI opened at $137.81 on Tuesday. Houlihan Lokey, Inc. has a 1 year low of $112.83 and a 1 year high of $211.78. The company's 50 day simple moving average is $133.46 and its 200 day simple moving average is $142.32. The stock has a market capitalization of $9.52 billion, a PE ratio of 23.16, a P/E/G ratio of 1.57 and a beta of 0.96.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its quarterly 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). The company had revenue of $511.00 million for the quarter, compared to analyst estimates of $602.38 million. Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.The business's revenue for the quarter was down 15.6% on a year-over-year basis. During the same period last year, the company posted $2.14 EPS. As a group, sell-side analysts expect that Houlihan Lokey, Inc. will post 6.93 earnings per share for the current fiscal year.

Houlihan Lokey Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.70 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $2.80 annualized dividend and a dividend yield of 2.0%. Houlihan Lokey's payout ratio is currently 47.06%.

Insider Activity at Houlihan Lokey

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

Houlihan Lokey Profile

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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