Geode Capital Management LLC Boosts Stake in Houlihan Lokey, Inc. $HLI

Key Points

• Geode Capital Management increased its stake in Houlihan Lokey by 6.4% in the fourth quarter, ending with 1.42 million shares worth about $247.1 million.
• Several analysts have turned more cautious on HLI, with ratings and price targets being trimmed; the stock’s current consensus is Hold with a target price of $191.29.
• Houlihan Lokey recently missed earnings expectations for the quarter, but it also raised its quarterly dividend to $0.70 per share from $0.60, implying a 2.0% yield.

Geode Capital Management LLC grew its stake in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 6.4% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,418,549 shares of the financial services provider's stock after buying an additional 84,757 shares during the quarter. Geode Capital Management LLC owned 2.02% of Houlihan Lokey worth $247,133,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also recently made changes to their positions in the stock. Resources Management Corp CT ADV grew its holdings in shares of Houlihan Lokey by 0.9% during the 2nd quarter. Resources Management Corp CT ADV now owns 5,845 shares of the financial services provider's stock valued at $1,052,000 after purchasing an additional 55 shares during the last quarter. Westside Investment Management Inc. grew its holdings in shares of Houlihan Lokey by 64.4% during the 3rd quarter. Westside Investment Management Inc. now owns 148 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 58 shares during the last quarter. Xponance Inc. grew its holdings in shares of Houlihan Lokey by 0.9% during the 3rd quarter. Xponance Inc. now owns 8,026 shares of the financial services provider's stock valued at $1,648,000 after purchasing an additional 68 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its holdings in shares of Houlihan Lokey by 7.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider's stock valued at $196,000 after purchasing an additional 70 shares during the last quarter. Finally, IFP Advisors Inc grew its holdings in shares of Houlihan Lokey by 4.4% during the 4th quarter. IFP Advisors Inc now owns 1,694 shares of the financial services provider's stock valued at $295,000 after purchasing an additional 72 shares during the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

Insider Activity

In other news, Chairman Scott L. Beiser sold 6,265 shares of the firm's stock in a transaction dated 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 sale, the chairman directly 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 the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of Houlihan Lokey stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total transaction of $71,700.00. Following the transaction, the general counsel directly owned 500 shares of the company's stock, valued at approximately $71,700. This trade represents a 50.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 22.83% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently commented on HLI shares. Weiss Ratings lowered shares of Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. Zacks Research lowered shares of Houlihan Lokey from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 13th. Keefe, Bruyette & Woods reduced their target price on shares of Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating on the stock in a report on Thursday, May 7th. UBS Group set a $160.00 target price on shares of Houlihan Lokey in a report on Thursday, May 7th. Finally, Morgan Stanley reduced their target price on shares of Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Houlihan Lokey presently has a consensus rating of "Hold" and a consensus target price of $191.29.

Houlihan Lokey Trading Down 0.8%

NYSE:HLI opened at $139.21 on Wednesday. The company has a 50-day moving average price of $149.80 and a 200-day moving average price of $164.01. Houlihan Lokey, Inc. has a 12 month low of $134.41 and a 12 month high of $211.78. The stock has a market cap of $9.61 billion, a price-to-earnings ratio of 22.38, a P/E/G ratio of 1.09 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 EPS 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 during the quarter, compared to analysts' expectations of $679.22 million. During the same period in the prior year, the business posted $1.96 earnings per share. The company's revenue for the quarter was down 4.6% on a year-over-year basis. Equities analysts forecast that Houlihan Lokey, Inc. will post 8.54 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

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

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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