Houlihan Lokey, Inc. $HLI Shares Bought by Royal Bank of Canada

Key Points

• Royal Bank of Canada increased its Houlihan Lokey stake by 2.8% in the first quarter, bringing its holdings to 1.75 million shares worth approximately $251.6 million. Institutional investors collectively own 78.07% of HLI.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $180.50, although individual targets range from $164 to $187.
• Houlihan Lokey’s latest results missed expectations, with EPS of $1.35 versus the $1.64 estimate and revenue down 15.6% year over year to $511 million. The company raised its quarterly dividend to $0.70 per share, implying a 2.0% annual yield.

Royal Bank of Canada raised its stake in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 2.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,751,495 shares of the financial services provider's stock after purchasing an additional 48,126 shares during the period. Royal Bank of Canada owned 2.51% of Houlihan Lokey worth $251,551,000 at the end of the most recent quarter.

Several other institutional investors have also modified their holdings of the stock. Robinhood Asset Management LLC purchased a new stake in shares of Houlihan Lokey during the fourth quarter worth approximately $6,862,000. Pier Capital LLC lifted its holdings in Houlihan Lokey by 62.3% in the 4th quarter. Pier Capital LLC now owns 44,000 shares of the financial services provider's stock valued at $7,664,000 after purchasing an additional 16,894 shares in the last quarter. M&T Bank Corp acquired a new stake in Houlihan Lokey during the 4th quarter worth $4,467,000. Fideuram Intesa Sanpaolo Private Banking S.P.A. purchased a new stake in shares of Houlihan Lokey during the fourth quarter worth $1,942,000. Finally, Fenimore Asset Management Inc grew its holdings in shares of Houlihan Lokey by 16.2% during the fourth quarter. Fenimore Asset Management Inc now owns 123,672 shares of the financial services provider's stock worth $21,542,000 after buying an additional 17,199 shares in the last quarter. Institutional investors and hedge funds own 78.07% of the company's stock.

Analysts Set New Price Targets

HLI has been the topic of several research reports. The Goldman Sachs Group set a $164.00 price target on shares of Houlihan Lokey in a research note on Friday, July 10th. Bank of America assumed coverage on shares of Houlihan Lokey in a research note on Friday, July 10th. They set a "buy" rating and a $164.00 price objective for the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Houlihan Lokey in a report on Friday, July 17th. US Capital Advisors set a $187.00 target price on shares of Houlihan Lokey in a research note on Thursday, July 9th. Finally, Wolfe Research upgraded Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a report on Thursday, July 9th. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $180.50.

Houlihan Lokey Stock Down 4.6%

NYSE HLI opened at $138.83 on Thursday. Houlihan Lokey, Inc. has a 52 week low of $130.72 and a 52 week high of $211.78. The business's fifty day simple moving average is $140.38 and its 200-day simple moving average is $152.70. The firm has a market cap of $9.59 billion, a PE ratio of 22.32, a P/E/G ratio of 1.23 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing the consensus estimate of $1.64 by ($0.29). Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The firm had revenue of $511.00 million for the quarter, compared to analyst estimates of $602.38 million. During the same period in the previous year, the firm posted $2.14 EPS. The company's revenue was down 15.6% compared to the same quarter last year. Research analysts expect that Houlihan Lokey, Inc. will post 7.91 EPS for the current year.

Houlihan Lokey Increases Dividend

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

Insider Buying and Selling

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of the business'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 directly 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 document filed with the SEC, which is available through the SEC website. 22.83% of the stock is owned by company insiders.

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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