Healthcare of Ontario Pension Plan Trust Fund Takes $3.02 Million Position in Houlihan Lokey, Inc. $HLI

Key Points

• Healthcare of Ontario Pension Plan Trust Fund acquired 21,011 Houlihan Lokey shares valued at approximately $3.02 million; institutional investors own 78.07% of the stock.
• Houlihan Lokey’s latest quarterly results disappointed, with EPS of $1.35 versus the $1.64 consensus and revenue of $511 million versus expectations of $602.38 million. Revenue fell 15.6% year over year, and the stock was recently down 7.6%.
• The company declared a quarterly dividend of $0.70 per share, equal to $2.80 annually and a yield of roughly 2.2%; analysts maintain a “Moderate Buy” consensus with an average price target of $174.62.

Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund purchased 21,011 shares of the financial services provider's stock, valued at approximately $3,018,000.

Other institutional investors also recently bought and sold shares of the company. Royal Bank of Canada boosted its position in Houlihan Lokey by 362.1% during the 4th quarter. Royal Bank of Canada now owns 1,703,369 shares of the financial services provider's stock valued at $296,706,000 after acquiring an additional 1,334,769 shares in the last quarter. Geode Capital Management LLC raised its position in shares of Houlihan Lokey by 6.4% in the 4th quarter. Geode Capital Management LLC now owns 1,418,549 shares of the financial services provider's stock worth $247,133,000 after acquiring an additional 84,757 shares in the last quarter. Bank of Montreal Can raised its position in shares of Houlihan Lokey by 2,723.2% in the 4th quarter. Bank of Montreal Can now owns 1,199,459 shares of the financial services provider's stock worth $208,934,000 after acquiring an additional 1,156,973 shares in the last quarter. Bank of America Corp DE lifted its stake in shares of 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 valued at $187,506,000 after purchasing an additional 41,470 shares during the period. Finally, Capital Research Global Investors lifted its stake in shares of Houlihan Lokey by 0.6% in the 4th quarter. Capital Research Global Investors now owns 962,263 shares of the financial services provider's stock valued at $167,617,000 after purchasing an additional 5,822 shares during the period. 78.07% of the stock is owned by institutional investors.

Houlihan Lokey Stock Down 7.6%

Houlihan Lokey stock opened at $128.54 on Friday. Houlihan Lokey, Inc. has a twelve month low of $112.83 and a twelve month high of $211.78. The company has a market capitalization of $8.88 billion, a P/E ratio of 21.60, a PEG ratio of 1.18 and a beta of 0.95. The stock's 50 day moving average is $139.93 and its 200 day moving average is $152.32.

Houlihan Lokey (NYSE:HLI - Get Free Report) last announced its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.64 by ($0.29). Houlihan Lokey had a net margin of 16.10% and a return on equity of 20.11%. The company had revenue of $511.00 million for the quarter, compared to analysts' expectations of $602.38 million. During the same quarter in the previous year, the firm posted $2.14 EPS. The firm's quarterly revenue was down 15.6% compared to the same quarter last year. As a group, equities analysts expect that Houlihan Lokey, Inc. will post 7.91 EPS for the current year.

Houlihan Lokey Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st will be given a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, September 1st. Houlihan Lokey's payout ratio is currently 47.06%.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on HLI shares. Morgan Stanley reduced their price target on Houlihan Lokey from $187.00 to $177.00 and set an "overweight" rating on the stock in a research note on Thursday. US Capital Advisors set a $187.00 price objective on Houlihan Lokey in a research report on Thursday, July 9th. Bank of America assumed coverage on shares of Houlihan Lokey in a report on Friday, July 10th. They set a "buy" rating and a $164.00 target price on the stock. Keefe, Bruyette & Woods reduced 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. Finally, The Goldman Sachs Group decreased their price target on shares of Houlihan Lokey from $171.00 to $148.00 and set a "buy" rating for the company in a research note on Thursday. Five equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $174.62.

Insider Activity

In related news, Chairman Scott L. Beiser sold 6,265 shares of the company'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 transaction, the chairman owned 6,265 shares in the company, valued at $941,378.90. The trade was a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 22.83% of the stock is currently owned by corporate insiders.

Trending Headlines about Houlihan Lokey

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Dividend maintained: Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable September 15 to shareholders of record September 1. The dividend implies an annualized payout of $2.80 and a yield of approximately 2.3%.
• Positive Sentiment: Analysts still see upside: Morgan Stanley maintained an “overweight” rating with a $177 price target, while Keefe, Bruyette & Woods retained an “outperform” rating and set a $153 target. Both targets remain well above the recent trading level, suggesting analysts continue to see longer-term recovery potential.
• Neutral Sentiment: UBS remains cautious but not bearish: UBS lowered its price target from $161 to $147 and maintained a “neutral” rating. Although the target was reduced, it still implies potential upside from the recent share price. UBS Adjusts Houlihan Lokey Price Target
• Negative Sentiment: Large earnings and revenue misses: Fiscal first-quarter EPS was $1.35, below the $1.64 analyst consensus and down from $2.14 a year earlier. Revenue of $511 million missed estimates of $602.38 million and fell 15.6% year over year. The results point to weaker advisory activity and reduced near-term earnings momentum. Houlihan Lokey Misses Q1 Earnings and Revenue Estimates
• Negative Sentiment: Price targets were broadly reduced: Morgan Stanley cut its target from $187 to $177, KBW lowered its target from $160 to $153, and UBS reduced its target from $161 to $147. While ratings remain favorable or neutral, the coordinated cuts indicate analysts are adjusting expectations after the disappointing quarter.

About Houlihan Lokey

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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