Houlihan Lokey, Inc. $HLI Shares Sold by Bank of New York Mellon Corp

Key Points

• Bank of New York Mellon reduced its Houlihan Lokey stake by 13.1% in the fourth quarter, selling 64,052 shares and leaving it with 424,253 shares valued at about $73.9 million.
• Houlihan Lokey’s latest quarterly results missed analyst expectations, with EPS of $1.63 versus the $1.79 consensus and revenue of $635.64 million versus $679.22 million expected. Revenue fell 4.6% year over year.
• The company raised its quarterly dividend to $0.70 per share from $0.60, putting the annualized payout at $2.80 and the dividend yield at 2.0%.

Bank of New York Mellon Corp lessened its position in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 13.1% in the 4th quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 424,253 shares of the financial services provider's stock after selling 64,052 shares during the period. Bank of New York Mellon Corp owned about 0.61% of Houlihan Lokey worth $73,901,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in HLI. Flagship Harbor Advisors LLC acquired a new position in Houlihan Lokey during the 4th quarter worth approximately $26,000. Oakworth Capital Inc. acquired a new position in Houlihan Lokey during the 4th quarter worth approximately $29,000. Core Wealth Advisors LLC acquired a new position in Houlihan Lokey during the 4th quarter worth approximately $32,000. Eurizon Capital SGR S.p.A. acquired a new position in Houlihan Lokey during the 4th quarter worth approximately $33,000. Finally, Strategic Wealth Investment Group LLC acquired a new position in Houlihan Lokey during the 2nd quarter worth approximately $39,000. Institutional investors and hedge funds own 78.07% of the company's stock.

Analyst Ratings Changes

HLI has been the subject of several analyst reports. UBS Group set a $160.00 price target on shares of Houlihan Lokey in a report on Thursday, May 7th. The Goldman Sachs Group lowered their target price on shares of Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating for the company in a report on Wednesday, April 1st. Morgan Stanley lowered their target price on shares of Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating for the company in a report on Thursday, April 9th. Zacks Research cut shares of Houlihan Lokey from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 13th. Finally, Weiss Ratings cut shares of Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. Five research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, Houlihan Lokey currently has a consensus rating of "Hold" and a consensus price target of $191.29.

Houlihan Lokey Price Performance

Shares of NYSE:HLI opened at $141.22 on Wednesday. The stock has a market cap of $9.75 billion, a P/E ratio of 22.70, a P/E/G ratio of 1.06 and a beta of 0.95. The firm has a fifty day moving average price of $149.71 and a 200 day moving average price of $162.40. Houlihan Lokey, Inc. has a 1-year low of $134.41 and a 1-year high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share for the quarter, missing analysts' consensus estimates of $1.79 by ($0.16). The business had revenue of $635.64 million for the quarter, compared to analyst estimates of $679.22 million. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The firm's revenue for the quarter was down 4.6% on a year-over-year basis. During the same quarter in the prior 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 firm also recently declared 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. The ex-dividend date is Monday, June 1st. This represents a $2.80 dividend on an annualized basis and a yield of 2.0%. This is an increase from Houlihan Lokey's previous quarterly dividend of $0.60. Houlihan Lokey's dividend payout ratio (DPR) is currently 45.02%.

Insiders Place Their Bets

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of the company's 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 transaction, the chairman owned 6,265 shares in the company, valued at approximately $941,378.90. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of the company's stock in a transaction 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. 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. 22.83% of the stock is owned by corporate insiders.

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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