Houlihan Lokey, Inc. $HLI Shares Sold by Brown Advisory Inc.

Key Points

• Brown Advisory Inc. cut its Houlihan Lokey stake by 12.3% in the fourth quarter, selling 19,828 shares and leaving it with 140,942 shares valued at about $24.6 million.
• Insiders also sold shares: Chairman Scott L. Beiser sold 6,265 shares and General Counsel Christopher M. Crain sold 500 shares, both under disclosed transactions; insiders now hold 22.83% of the stock.
• Houlihan Lokey missed earnings expectations in its latest quarter, posting $1.63 EPS versus the $1.79 estimate and revenue of $635.64 million versus $679.22 million expected, even as it raised its quarterly dividend to $0.70 per share.

Brown Advisory Inc. lessened its position in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 12.3% during the 4th quarter, according to the company in its most recent disclosure with the SEC. The firm owned 140,942 shares of the financial services provider's stock after selling 19,828 shares during the quarter. Brown Advisory Inc. owned approximately 0.20% of Houlihan Lokey worth $24,551,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in HLI. Royal Bank of Canada grew its position in 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 buying an additional 6,253 shares during the period. AQR Capital Management LLC grew its position 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 purchasing an additional 9,891 shares during the period. Millennium Management LLC acquired a new stake in shares of Houlihan Lokey in the first quarter valued at about $18,964,000. Goldman Sachs Group Inc. grew its position 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 purchasing an additional 22,553 shares during the period. Finally, Arrowstreet Capital Limited Partnership acquired a new stake in shares of Houlihan Lokey in the second quarter valued at about $1,033,000. Institutional investors and hedge funds own 78.07% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on HLI shares. Zacks Research upgraded shares of Houlihan Lokey from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 11th. UBS Group set a $160.00 target price on shares of Houlihan Lokey in a research report on Thursday, May 7th. Keefe, Bruyette & Woods dropped 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 report on Thursday, May 7th. Morgan Stanley dropped their target price on shares of Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating on the stock in a research report on Thursday, April 9th. Finally, Weiss Ratings lowered shares of Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, April 21st. Five equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $191.29.

Insider Transactions at Houlihan Lokey

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of Houlihan Lokey stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $150.26, for a total transaction of $941,378.90. Following the transaction, the chairman directly owned 6,265 shares of the company's stock, valued at $941,378.90. The trade was a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of Houlihan Lokey stock in a transaction dated 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 directly owned 500 shares in the company, valued at $71,700. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.83% of the stock is owned by insiders.

Houlihan Lokey Trading Up 1.4%

NYSE:HLI opened at $139.76 on Tuesday. The company's 50-day moving average price is $149.37 and its 200-day moving average price is $161.39. The company has a market cap of $9.65 billion, a P/E ratio of 22.47, a P/E/G ratio of 1.07 and a beta of 0.95. Houlihan Lokey, Inc. has a twelve month low of $133.83 and a twelve month high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 EPS for the quarter, missing analysts' consensus estimates of $1.79 by ($0.16). Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The firm had revenue of $635.64 million for the quarter, compared to analysts' expectations of $679.22 million. During the same period last year, the firm earned $1.96 earnings per share. Houlihan Lokey's revenue for the quarter was down 4.6% on a year-over-year basis. On average, analysts expect that Houlihan Lokey, Inc. will post 8.54 earnings per share 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%.

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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