First Trust Advisors LP Lowers Holdings in Houlihan Lokey, Inc. $HLI

Key Points

• First Trust Advisors LP reduced its stake in Houlihan Lokey by 3.4% during Q3, selling 13,659 shares and leaving it with 393,109 shares valued at about $80.7 million; institutional investors collectively own roughly 78.1% of the company.
• Company results were solid: Houlihan Lokey beat Q earnings expectations with $1.94 EPS (vs. $1.85 est.), reported revenue up 13% year‑over‑year and a 24.46% return on equity, while the firm has a market cap around $10.3 billion and a P/E of 22.6.
• Dividend and sentiment: The firm declared a $0.60 quarterly dividend ($2.40 annual, ~1.6% yield; ex‑dividend March 2), and analysts hold a consensus "Moderate Buy" with an average target of $209.17, although insiders have recently sold shares (director sold 5,000 shares).

First Trust Advisors LP reduced its stake in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 3.4% during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 393,109 shares of the financial services provider's stock after selling 13,659 shares during the period. First Trust Advisors LP owned approximately 0.56% of Houlihan Lokey worth $80,713,000 as of its most recent SEC filing.

Several other large investors have also recently modified their holdings of the stock. Vanguard Group Inc. grew its position in Houlihan Lokey by 0.3% during the 3rd quarter. Vanguard Group Inc. now owns 5,305,182 shares of the financial services provider's stock valued at $1,089,260,000 after purchasing an additional 13,750 shares during the last quarter. Burgundy Asset Management Ltd. grew its holdings in shares of Houlihan Lokey by 3.0% during the second quarter. Burgundy Asset Management Ltd. now owns 1,225,966 shares of the financial services provider's stock valued at $220,613,000 after buying an additional 36,144 shares during the last quarter. Mayflower Financial Advisors LLC bought a new stake in shares of Houlihan Lokey during the third quarter valued at approximately $230,335,000. Bank of America Corp DE raised its holdings in Houlihan Lokey by 4.1% in the 2nd quarter. Bank of America Corp DE now owns 1,041,990 shares of the financial services provider's stock worth $187,506,000 after acquiring an additional 41,470 shares during the last quarter. Finally, Geode Capital Management LLC lifted its position in Houlihan Lokey by 2.1% in the 2nd quarter. Geode Capital Management LLC now owns 1,041,590 shares of the financial services provider's stock valued at $187,462,000 after acquiring an additional 21,132 shares in the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

Houlihan Lokey Price Performance

Shares of HLI opened at $147.22 on Tuesday. Houlihan Lokey, Inc. has a one year low of $137.99 and a one year high of $211.78. The firm has a market capitalization of $10.27 billion, a P/E ratio of 22.61 and a beta of 0.95. The business has a fifty day moving average of $173.16 and a 200 day moving average of $183.59.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its earnings results on Thursday, January 29th. The financial services provider reported $1.94 earnings per share for the quarter, beating analysts' consensus estimates of $1.85 by $0.09. Houlihan Lokey had a return on equity of 24.46% and a net margin of 16.91%.The business's quarterly revenue was up 13.0% compared to the same quarter last year. During the same period in the prior year, the business earned $1.64 EPS. Analysts expect that Houlihan Lokey, Inc. will post 5.98 EPS for the current fiscal year.

Houlihan Lokey Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Sunday, March 15th. Stockholders of record on Monday, March 2nd will be paid a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Monday, March 2nd. Houlihan Lokey's dividend payout ratio is 36.87%.

Analyst Ratings Changes

Several analysts have commented on HLI shares. BMO Capital Markets lifted their target price on Houlihan Lokey from $209.00 to $211.00 and gave the stock an "outperform" rating in a report on Thursday, January 29th. UBS Group reaffirmed a "neutral" rating and set a $196.00 price target on shares of Houlihan Lokey in a report on Friday, January 30th. Keefe, Bruyette & Woods dropped their price objective on Houlihan Lokey from $218.00 to $214.00 and set an "outperform" rating on the stock in a research report on Thursday, January 29th. Weiss Ratings raised Houlihan Lokey from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, February 20th. Finally, Morgan Stanley lowered their target price on shares of Houlihan Lokey from $216.00 to $215.00 and set an "overweight" rating on the stock in a research note on Tuesday, January 6th. Five equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $209.17.

Insider Activity at Houlihan Lokey

In related news, Director Robert A. Schriesheim sold 5,000 shares of the firm's stock in a transaction that occurred on Friday, February 6th. The shares were sold at an average price of $170.86, for a total value of $854,300.00. Following the transaction, the director owned 27,982 shares of the company's stock, valued at approximately $4,781,004.52. This trade represents a 15.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, General Counsel Christopher M. Crain sold 500 shares of the business's stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $174.17, for a total transaction of $87,085.00. Additional details regarding this sale are available in the official SEC disclosure. 22.83% of the stock is owned by corporate 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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