HighTower Advisors LLC Lowers Stake in Houlihan Lokey, Inc. $HLI

Key Points

• HighTower Advisors cut its Houlihan Lokey stake by 10.1% in the fourth quarter, though it still held 222,857 shares worth about $38.8 million. Institutional ownership remains high, with hedge funds and other investors owning 78.07% of the stock.
• Houlihan Lokey reported missed quarterly earnings, posting $1.63 EPS versus the $1.79 consensus and revenue of $635.64 million versus $679.22 million expected. Revenue fell 4.6% year over year, even as analysts still forecast full-year EPS of 8.54.
• The company raised its quarterly dividend to $0.70 per share from $0.60, implying a 1.9% yield. Separately, insiders have been selling shares, including Chairman Scott L. Beiser and General Counsel Christopher M. Crain.

HighTower Advisors LLC reduced its stake in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 10.1% in the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 222,857 shares of the financial services provider's stock after selling 24,928 shares during the quarter. HighTower Advisors LLC owned approximately 0.32% of Houlihan Lokey worth $38,819,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in HLI. Royal Bank of Canada boosted its stake in shares of Houlihan Lokey by 14.4% during the first 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 period. AQR Capital Management LLC raised its holdings in shares of Houlihan Lokey by 50.0% in the first quarter. AQR Capital Management LLC now owns 29,654 shares of the financial services provider's stock valued at $4,598,000 after acquiring an additional 9,891 shares in the last quarter. Millennium Management LLC bought a new stake in shares of Houlihan Lokey in the first quarter valued at about $18,964,000. Goldman Sachs Group Inc. raised its holdings in shares of Houlihan Lokey by 5.7% in the first quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider's stock valued at $67,143,000 after acquiring an additional 22,553 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new stake in shares of Houlihan Lokey in the second quarter valued at about $1,033,000. 78.07% of the stock is owned by hedge funds and other institutional investors.

Houlihan Lokey Stock Performance

NYSE:HLI opened at $151.30 on Friday. The company's 50-day simple moving average is $148.89 and its 200-day simple moving average is $165.65. Houlihan Lokey, Inc. has a fifty-two week low of $134.41 and a fifty-two week high of $211.78. The stock has a market capitalization of $10.56 billion, a P/E ratio of 24.33, a P/E/G ratio of 1.16 and a beta of 0.99.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings data 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). The firm had revenue of $635.64 million for the quarter, compared to the consensus estimate of $679.22 million. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The company's revenue was down 4.6% compared to the same quarter last year. During the same quarter last year, the firm earned $1.96 EPS. On average, research analysts forecast that Houlihan Lokey, Inc. will post 8.54 EPS for the current year.

Houlihan Lokey Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be paid a dividend of $0.70 per share. This is a boost from Houlihan Lokey's previous quarterly dividend of $0.60. The ex-dividend date is Monday, June 1st. This represents a $2.80 annualized dividend and a dividend yield of 1.9%. Houlihan Lokey's dividend payout ratio (DPR) is presently 38.59%.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on HLI shares. Keefe, Bruyette & Woods decreased their price objective on Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating for the company in a report on Thursday, May 7th. Weiss Ratings downgraded Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. BMO Capital Markets lifted their price objective on Houlihan Lokey from $209.00 to $211.00 and gave the company an "outperform" rating in a report on Thursday, January 29th. UBS Group set a $160.00 price objective on Houlihan Lokey in a report on Thursday, May 7th. Finally, Zacks Research downgraded Houlihan Lokey from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 13th. Five investment 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. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $191.29.

Insider Activity at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the business's stock in a transaction that occurred 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 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 transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, General Counsel Christopher M. Crain sold 500 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $143.40, for a total transaction of $71,700.00. Following the transaction, the general counsel owned 500 shares of the company's stock, valued at approximately $71,700. This trade represents 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. Insiders own 22.83% of the company's stock.

Houlihan Lokey Company 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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