Hsbc Holdings PLC Sells 7,381 Shares of Houlihan Lokey, Inc. $HLI

Key Points

• HSBC Holdings PLC cut its stake in Houlihan Lokey by 28.7% in the first quarter, selling 7,381 shares and leaving it with 18,295 shares worth about $2.64 million.
• Insider selling also stood out, with Chairman Scott L. Beiser selling 6,265 shares in May for about $941,379, representing a 50% reduction in his ownership.
• Analysts remain mixed on HLI: the stock has a “Moderate Buy” consensus with an average price target of $180.50, while the company recently missed earnings and revenue estimates and trades around $140.17.

Hsbc Holdings PLC lowered its stake in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 28.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 18,295 shares of the financial services provider's stock after selling 7,381 shares during the quarter. Hsbc Holdings PLC's holdings in Houlihan Lokey were worth $2,635,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of HLI. Flagship Harbor Advisors LLC bought a new position in Houlihan Lokey in the 4th quarter valued at $26,000. Oakworth Capital Inc. purchased a new position in Houlihan Lokey during the fourth quarter worth about $29,000. Core Wealth Advisors LLC bought a new stake in shares of Houlihan Lokey during the 4th quarter valued at about $32,000. Eurizon Capital SGR S.p.A. bought a new stake in shares of Houlihan Lokey during the 4th quarter valued at about $33,000. Finally, Strategic Wealth Investment Group LLC bought a new position in shares of Houlihan Lokey in the second quarter worth approximately $39,000. Institutional investors own 78.07% of the company's stock.

Insider Buying and Selling

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of the business's 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 completion of the sale, the chairman owned 6,265 shares in the company, valued at approximately $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 SEC, which can be accessed through this hyperlink. 22.83% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

A number of research firms have commented on HLI. Keefe, Bruyette & Woods cut their price target on shares of Houlihan Lokey from $172.00 to $160.00 and set an "outperform" rating for the company in a research note on Friday, July 10th. UBS Group raised their price objective on shares of Houlihan Lokey from $160.00 to $161.00 and gave the company a "neutral" rating in a research report on Wednesday, July 8th. Zacks Research upgraded shares of Houlihan Lokey from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 11th. US Capital Advisors set a $187.00 target price on Houlihan Lokey in a research note on Thursday, July 9th. Finally, Wolfe Research upgraded Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Five analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. According to MarketBeat, Houlihan Lokey currently has an average rating of "Moderate Buy" and an average price target of $180.50.

Houlihan Lokey Stock Performance

HLI stock opened at $140.17 on Friday. The firm has a market cap of $9.68 billion, a P/E ratio of 22.54, a P/E/G ratio of 1.19 and a beta of 0.95. The firm's fifty day moving average is $140.85 and its 200 day moving average is $153.78. Houlihan Lokey, Inc. has a 52 week low of $130.72 and a 52 week high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.79 by ($0.16). The business had revenue of $635.64 million for the quarter, compared to analysts' expectations of $679.22 million. Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The business's quarterly revenue was down 4.6% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.96 earnings per share. As a group, analysts forecast that Houlihan Lokey, Inc. will post 7.91 EPS for the current year.

Houlihan Lokey Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 2.0%. The ex-dividend date was Monday, June 1st. This is a positive change from Houlihan Lokey's previous quarterly dividend of $0.60. Houlihan Lokey's dividend payout ratio is 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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