Houlihan Lokey, Inc. $HLI Stock Acquired by Fenimore Asset Management Inc

Key Points

• Fenimore Asset Management increased its Houlihan Lokey stake by 52.9% in the third quarter, purchasing 88,862 additional shares and bringing its holdings to 256,760 shares valued at approximately $32.4 million. Institutional investors collectively own 78.07% of the company.
• Analyst sentiment is mixed, with five Buy ratings, four Holds and one Sell. The consensus rating is Hold, with an average price target of $165.75, despite several firms recently lowering their targets.
• Houlihan Lokey’s latest quarterly results missed expectations, reporting $1.35 in EPS versus $1.64 expected and revenue of $511 million versus $602.38 million estimated; revenue fell 15.6% year over year. The company continues to pay a quarterly dividend of $0.70 per share, representing a 2.2% yield.

Fenimore Asset Management Inc lifted its holdings in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 52.9% in the third quarter, according to its most recent disclosure with the SEC. The institutional investor owned 256,760 shares of the financial services provider's stock after purchasing an additional 88,862 shares during the period. Fenimore Asset Management Inc owned approximately 0.37% of Houlihan Lokey worth $32,439,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in the business. Royal Bank of Canada lifted its holdings in Houlihan Lokey by 2.8% during the 1st quarter. Royal Bank of Canada now owns 1,751,495 shares of the financial services provider's stock worth $251,551,000 after buying an additional 48,126 shares in the last quarter. Dimensional Fund Advisors LP boosted its position in Houlihan Lokey by 15.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 616,519 shares of the financial services provider's stock valued at $88,540,000 after buying an additional 81,182 shares during the period. Goldman Sachs Group Inc. grew its stake in shares of Houlihan Lokey by 20.4% in the fourth quarter. Goldman Sachs Group Inc. now owns 544,862 shares of the financial services provider's stock worth $94,909,000 after acquiring an additional 92,453 shares in the last quarter. Van Berkom & Associates Inc. grew its stake in shares of Houlihan Lokey by 7.6% in the first quarter. Van Berkom & Associates Inc. now owns 405,978 shares of the financial services provider's stock worth $58,307,000 after acquiring an additional 28,600 shares in the last quarter. Finally, GW&K Investment Management LLC increased its position in shares of Houlihan Lokey by 4.0% during the fourth quarter. GW&K Investment Management LLC now owns 356,255 shares of the financial services provider's stock worth $62,056,000 after acquiring an additional 13,614 shares during the period. 78.07% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have recently issued reports on the company. Bank of America assumed coverage on Houlihan Lokey in a research note on Friday, July 10th. They issued a "buy" rating and a $164.00 price objective on the stock. Morgan Stanley lowered their target price on Houlihan Lokey from $177.00 to $165.00 and set an "overweight" rating for the company in a research note on Thursday. Zacks Research lowered Houlihan Lokey from a "hold" rating to a "strong sell" rating in a research report on Friday, August 21st. Keefe, Bruyette & Woods decreased their price objective on Houlihan Lokey from $160.00 to $153.00 and set an "outperform" rating for the company in a research note on Thursday, July 30th. Finally, BMO Capital Markets lowered their price objective on Houlihan Lokey from $160.00 to $145.00 and set an "outperform" rating for the company in a research report on Monday, August 3rd. Five equities research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus price target of $165.75.

Insider Activity

In other news, General Counsel Christopher M. Crain sold 1,000 shares of the stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $140.15, for a total value of $140,150.00. Following the transaction, the general counsel owned 1,000 shares in the company, valued at approximately $140,150. This represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Corporate insiders own 22.53% of the company's stock.

Houlihan Lokey Price Performance

Shares of Houlihan Lokey stock traded up $0.53 during trading on Thursday, hitting $125.75. 926,519 shares of the stock were exchanged, compared to its average volume of 731,721. The stock has a market cap of $8.68 billion, a price-to-earnings ratio of 21.13, a price-to-earnings-growth ratio of 1.47 and a beta of 1.00. The firm's 50-day moving average price is $130.14 and its 200 day moving average price is $139.69. Houlihan Lokey, Inc. has a 12-month low of $112.83 and a 12-month high of $204.18.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its earnings results on Wednesday, July 29th. The financial services provider reported $1.35 EPS for the quarter, missing analysts' consensus estimates of $1.64 by ($0.29). The firm 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 for the quarter was down 15.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.14 EPS. As a group, research analysts forecast that Houlihan Lokey, Inc. will post 6.93 earnings per share for the current year.

Houlihan Lokey Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 1st were given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 2.2%. The ex-dividend date of this dividend was Tuesday, September 1st. Houlihan Lokey's dividend payout ratio is currently 47.06%.

Houlihan Lokey Company Profile

Houlihan Lokey, Inc is a global investment bank that provides financial advisory services to corporations, institutions, governments and other organizations. The firm focuses on complex strategic, financial and restructuring matters and is known for its independent advisory model.

Its principal businesses include corporate finance, financial restructuring, and financial and valuation advisory. Services include mergers and acquisitions advice, capital-raising and other strategic transactions, restructuring and liability management, fairness opinions, solvency analysis, financial reporting valuations, and transaction opinions.

Founded in 1972, Houlihan Lokey serves clients through offices across North America, Europe, the Asia-Pacific region and the Middle East.

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