GW&K Investment Management LLC Grows Stake in Houlihan Lokey, Inc. $HLI

Key Points

• GW&K Investment Management increased its stake in Houlihan Lokey by 4.0% in the fourth quarter, bringing its holdings to 356,255 shares valued at about $62.1 million. Institutional ownership remains high, with hedge funds and other institutions owning 78.07% of the stock.
• Insiders sold shares during the period, including Chairman Scott L. Beiser, who sold 6,265 shares in May, and General Counsel Christopher M. Crain, who sold 500 shares under a pre-arranged trading plan.
• Houlihan Lokey reported mixed quarterly results, with earnings of $1.63 per share and revenue of $635.64 million both missing analyst estimates. The company also raised its quarterly dividend to $0.70 per share, while analysts currently have a consensus rating of Hold.

GW&K Investment Management LLC lifted its holdings in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 4.0% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 356,255 shares of the financial services provider's stock after buying an additional 13,614 shares during the quarter. GW&K Investment Management LLC owned about 0.51% of Houlihan Lokey worth $62,056,000 at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Flagship Harbor Advisors LLC purchased a new stake in Houlihan Lokey in the 4th quarter worth approximately $26,000. Oakworth Capital Inc. purchased a new stake in Houlihan Lokey in the 4th quarter worth approximately $29,000. Core Wealth Advisors LLC purchased a new stake in Houlihan Lokey in the 4th quarter worth approximately $32,000. Eurizon Capital SGR S.p.A. purchased a new stake in Houlihan Lokey in the 4th quarter worth approximately $33,000. Finally, Strategic Wealth Investment Group LLC purchased a new stake in Houlihan Lokey in the 2nd quarter worth approximately $39,000. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling at Houlihan Lokey

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $150.26, for a total transaction of $941,378.90. Following the completion of the sale, the chairman owned 6,265 shares of the company's stock, valued at $941,378.90. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total transaction of $71,700.00. Following the sale, the general counsel directly owned 500 shares of the company's stock, valued at $71,700. The trade was a 50.00% decrease in their position. 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. Corporate insiders own 22.83% of the company's stock.

Houlihan Lokey Stock Up 3.0%

Shares of HLI opened at $141.22 on Wednesday. The stock has a market capitalization of $9.75 billion, a P/E ratio of 22.70, a PEG ratio of 1.06 and a beta of 0.95. The firm has a fifty day simple moving average of $149.71 and a two-hundred day simple moving average of $162.40. Houlihan Lokey, Inc. has a twelve month low of $134.41 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 the consensus estimate of $1.79 by ($0.16). The firm had revenue of $635.64 million for the quarter, compared to analysts' expectations of $679.22 million. Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The company's quarterly revenue was down 4.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.96 EPS. Sell-side analysts expect that Houlihan Lokey, Inc. will post 8.54 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

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

Analyst Ratings Changes

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

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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