Houlihan Lokey, Inc. $HLI Shares Sold by Rheos Capital Works Inc.

Key Points

• Rheos Capital Works Inc. decreased its stake in Houlihan Lokey, Inc. by 41.4%, selling 25,000 shares during the second quarter, leaving it with 35,400 shares valued at $6.37 million.
• Several hedge funds made significant adjustments to their positions, including Bogart Wealth LLC, which boosted its stake by 111.1% in the first quarter.
• Analysts have issued mixed ratings for Houlihan Lokey, with a consensus rating of "Moderate Buy" and an average price target of $212.43, despite some downgrades from firms like Zacks Research.

Rheos Capital Works Inc. decreased its position in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 41.4% during the 2nd quarter, according to its most recent disclosure with the SEC. The fund owned 35,400 shares of the financial services provider's stock after selling 25,000 shares during the period. Rheos Capital Works Inc. owned about 0.05% of Houlihan Lokey worth $6,370,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in the company. Bogart Wealth LLC boosted its position in shares of Houlihan Lokey by 111.1% in the 1st quarter. Bogart Wealth LLC now owns 152 shares of the financial services provider's stock worth $25,000 after buying an additional 80 shares in the last quarter. Motco acquired a new position in Houlihan Lokey during the first quarter worth about $29,000. Trust Co. of Toledo NA OH purchased a new stake in shares of Houlihan Lokey in the second quarter valued at about $34,000. Brooklyn Investment Group purchased a new stake in shares of Houlihan Lokey in the first quarter valued at about $33,000. Finally, TCTC Holdings LLC grew its position in shares of Houlihan Lokey by 103.5% in the first quarter. TCTC Holdings LLC now owns 232 shares of the financial services provider's stock valued at $37,000 after purchasing an additional 118 shares during the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

Analyst Ratings Changes

Several research analysts recently issued reports on the company. Zacks Research downgraded Houlihan Lokey from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 29th. Keefe, Bruyette & Woods dropped their price target on Houlihan Lokey from $232.00 to $226.00 and set a "moderate buy" rating for the company in a research report on Monday. Wells Fargo & Company boosted their price target on Houlihan Lokey from $185.00 to $209.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. BMO Capital Markets started coverage on Houlihan Lokey in a research note on Friday, October 3rd. They set an "outperform" rating and a $230.00 price objective on the stock. Finally, Wall Street Zen cut Houlihan Lokey from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $212.43.

Houlihan Lokey Stock Up 1.3%

HLI stock opened at $193.81 on Wednesday. The stock has a market capitalization of $13.63 billion, a price-to-earnings ratio of 32.63 and a beta of 0.87. Houlihan Lokey, Inc. has a 52-week low of $137.99 and a 52-week high of $211.78. The stock's fifty day simple moving average is $198.23 and its 200-day simple moving average is $182.32.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its earnings results on Tuesday, July 29th. The financial services provider reported $2.14 earnings per share for the quarter, topping the consensus estimate of $1.69 by $0.45. Houlihan Lokey had a return on equity of 23.75% and a net margin of 16.46%.The firm had revenue of $605.35 million for the quarter, compared to the consensus estimate of $573.07 million. During the same period in the prior year, the business posted $1.22 earnings per share. The firm's revenue for the quarter was up 17.8% compared to the same quarter last year. As a group, analysts anticipate that Houlihan Lokey, Inc. will post 5.98 earnings per share for the current fiscal year.

Houlihan Lokey Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, September 15th. Investors of record on Tuesday, September 2nd were issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date was Tuesday, September 2nd. Houlihan Lokey's payout ratio is presently 40.40%.

Insider Buying and Selling

In other Houlihan Lokey news, Chairman Paul Eric Siegert sold 40,000 shares of the stock in a transaction that occurred on Wednesday, August 27th. The shares were sold at an average price of $199.95, for a total transaction of $7,998,000.00. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Chairman Irwin Gold sold 6,811 shares of Houlihan Lokey stock in a transaction on Tuesday, September 16th. The shares were sold at an average price of $202.75, for a total transaction of $1,380,930.25. The disclosure for this sale can be found here. Over the last quarter, insiders sold 47,311 shares of company stock valued at $9,477,040. Insiders own 22.83% of the company's stock.

About Houlihan Lokey

Houlihan Lokey, Inc, an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.

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