Entropy Technologies LP Invests $3.92 Million in Houlihan Lokey, Inc. $HLI

Key Points

• Entropy Technologies LP opened a new position in Houlihan Lokey during the first quarter, buying 27,331 shares valued at about $3.92 million.
• The company drew mixed analyst sentiment: several firms maintained or issued Buy ratings, but the consensus remains Moderate Buy with an average price target of $180.50.
• Houlihan Lokey reported quarterly earnings and revenue below expectations, though it also raised its dividend to $0.70 per share quarterly, giving it an annualized yield of about 2.0%.

Entropy Technologies LP bought a new position in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 27,331 shares of the financial services provider's stock, valued at approximately $3,925,000.

A number of other institutional investors have also recently bought and sold shares of HLI. Royal Bank of Canada boosted its holdings in shares of 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 valued at $8,008,000 after purchasing an additional 6,253 shares during the last quarter. AQR Capital Management LLC grew its stake 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 buying an additional 9,891 shares during the period. Millennium Management LLC acquired a new stake in shares of Houlihan Lokey during the 1st quarter worth $18,964,000. Goldman Sachs Group Inc. increased its holdings in shares of Houlihan Lokey by 5.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider's stock worth $67,143,000 after buying an additional 22,553 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership purchased a new position in shares of Houlihan Lokey in the 2nd quarter worth $1,033,000. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

HLI has been the topic of a number of research analyst reports. Zacks Research upgraded Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. The Goldman Sachs Group set a $164.00 price target on Houlihan Lokey in a research note on Friday, July 10th. US Capital Advisors set a $187.00 price objective on Houlihan Lokey in a report on Thursday, July 9th. Bank of America began coverage on Houlihan Lokey in a research note on Friday, July 10th. They issued a "buy" rating and a $164.00 price objective on the stock. Finally, Morgan Stanley decreased their target price on Houlihan Lokey from $193.00 to $187.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, Houlihan Lokey currently has a consensus rating of "Moderate Buy" and a consensus target price of $180.50.

Houlihan Lokey Trading Up 1.7%

NYSE:HLI opened at $140.17 on Friday. The firm has a market capitalization of $9.68 billion, a price-to-earnings ratio of 22.54, a PEG ratio of 1.19 and a beta of 0.95. The firm's fifty day simple moving average is $140.85 and its 200 day simple moving average is $153.78. Houlihan Lokey, Inc. has a twelve month low of $130.72 and a twelve month high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share for the quarter, missing analysts' consensus estimates of $1.79 by ($0.16). Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The business had revenue of $635.64 million for the quarter, compared to analysts' expectations of $679.22 million. During the same period last year, the company posted $1.96 earnings per share. The firm's revenue for the quarter was down 4.6% on a year-over-year basis. On average, analysts predict that Houlihan Lokey, Inc. will post 7.91 earnings per share for the current year.

Houlihan Lokey Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were given a $0.70 dividend. The ex-dividend date of this dividend was Monday, June 1st. This is a positive change from Houlihan Lokey's previous quarterly dividend of $0.60. This represents a $2.80 annualized dividend and a dividend yield of 2.0%. Houlihan Lokey's dividend payout ratio (DPR) is currently 45.02%.

Insider Buying and Selling at Houlihan Lokey

In other news, Chairman Scott L. Beiser sold 6,265 shares of the stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $150.26, for a total value of $941,378.90. Following the completion of the sale, the chairman owned 6,265 shares in the company, valued at approximately $941,378.90. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 22.83% of the stock is owned by insiders.

Houlihan Lokey 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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