Houlihan Lokey, Inc. $HLI Shares Sold by First Trust Advisors LP

Key Points

• First Trust Advisors LP cut its Houlihan Lokey stake by 92% in the first quarter, selling 375,435 shares and retaining 32,603 shares valued at approximately $4.7 million. Institutional investors and hedge funds collectively own 78.07% of HLI.
• Houlihan Lokey reported quarterly earnings of $1.35 per share, missing the $1.64 consensus estimate, while revenue fell 15.6% year over year to $511 million, below expectations of $602.38 million.
• The company declared a quarterly dividend of $0.70 per share, or $2.80 annualized, representing a 2.2% yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $166.38, despite recent target reductions.

First Trust Advisors LP lessened its holdings in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 92.0% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 32,603 shares of the financial services provider's stock after selling 375,435 shares during the period. First Trust Advisors LP's holdings in Houlihan Lokey were worth $4,682,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Resources Management Corp CT ADV boosted its stake in shares of Houlihan Lokey by 0.9% in the second quarter. Resources Management Corp CT ADV now owns 5,845 shares of the financial services provider's stock worth $1,052,000 after buying an additional 55 shares during the last quarter. Huntington National Bank raised its position in Houlihan Lokey by 5.5% during the fourth quarter. Huntington National Bank now owns 1,156 shares of the financial services provider's stock valued at $201,000 after acquiring an additional 60 shares in the last quarter. Moneta Group Investment Advisors LLC raised its position in Houlihan Lokey by 1.2% during the fourth quarter. Moneta Group Investment Advisors LLC now owns 5,267 shares of the financial services provider's stock valued at $917,000 after acquiring an additional 61 shares in the last quarter. Northwestern Mutual Wealth Management Co. lifted its holdings in Houlihan Lokey by 7.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider's stock valued at $196,000 after acquiring an additional 70 shares during the period. Finally, IFP Advisors Inc lifted its holdings in Houlihan Lokey by 4.4% in the fourth quarter. IFP Advisors Inc now owns 1,694 shares of the financial services provider's stock valued at $295,000 after acquiring an additional 72 shares during the period. 78.07% of the stock is currently owned by institutional investors and hedge funds.

Houlihan Lokey Stock Performance

Houlihan Lokey stock opened at $128.02 on Wednesday. The company's fifty day moving average price is $138.43 and its 200 day moving average price is $151.15. Houlihan Lokey, Inc. has a 1 year low of $112.83 and a 1 year high of $211.78. The stock has a market capitalization of $8.84 billion, a P/E ratio of 21.52, a P/E/G ratio of 1.40 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing analysts' consensus estimates of $1.64 by ($0.29). The company had revenue of $511.00 million for the quarter, compared to analyst estimates of $602.38 million. Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.The business's revenue was down 15.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.14 earnings per share. Sell-side analysts predict that Houlihan Lokey, Inc. will post 7.13 EPS for the current year.

Houlihan Lokey Announces Dividend

The company also recently announced 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 is Tuesday, September 1st. Houlihan Lokey's dividend payout ratio (DPR) is 47.06%.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. BMO Capital Markets dropped their price objective on shares of Houlihan Lokey from $160.00 to $145.00 and set an "outperform" rating on the stock in a research note on Monday. The Goldman Sachs Group decreased their target price 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, July 30th. Weiss Ratings reissued a "hold (c)" rating on shares of Houlihan Lokey in a report on Friday, July 17th. Morgan Stanley lowered their price target on shares of Houlihan Lokey from $187.00 to $177.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Finally, Keefe, Bruyette & Woods dropped their price target 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, July 30th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $166.38.

Insider Activity

In other news, Chairman Scott L. Beiser sold 6,265 shares of Houlihan Lokey stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total value of $941,378.90. Following the sale, 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 legal filing with the SEC, which is available at this link. 22.53% of the stock is owned by corporate insiders.

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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