Interval Partners LP Acquires Shares of 84,954 Houlihan Lokey, Inc. $HLI

Key Points

• Interval Partners LP bought a new stake in Houlihan Lokey during the fourth quarter, purchasing 84,954 shares valued at about $14.8 million. Institutional investors remain heavily involved, owning 78.07% of the stock.
• Houlihan Lokey’s latest quarterly results missed analyst expectations, with earnings of $1.63 per share versus $1.79 expected and revenue of $635.64 million versus $679.22 million projected. Revenue also declined 4.6% year over year.
• The company raised its quarterly dividend to $0.70 from $0.60, which annualizes to $2.80 per share and a 2.0% yield. Meanwhile, analysts still view the stock favorably overall, with a consensus rating of Moderate Buy and a target price of $191.29.

Interval Partners LP acquired a new stake in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund acquired 84,954 shares of the financial services provider's stock, valued at approximately $14,798,000. Interval Partners LP owned approximately 0.12% of Houlihan Lokey at the end of the most recent quarter.

Other institutional investors also recently added to or reduced their stakes in the company. Flagship Harbor Advisors LLC acquired a new stake in Houlihan Lokey during the fourth quarter valued at approximately $26,000. Oakworth Capital Inc. acquired a new stake in Houlihan Lokey during the fourth quarter valued at approximately $29,000. Core Wealth Advisors LLC acquired a new stake in Houlihan Lokey during the fourth quarter valued at approximately $32,000. Eurizon Capital SGR S.p.A. acquired a new stake in Houlihan Lokey during the fourth quarter valued at approximately $33,000. Finally, Strategic Wealth Investment Group LLC acquired a new position in shares of Houlihan Lokey in the 2nd quarter worth approximately $39,000. 78.07% of the stock is owned by institutional investors and hedge funds.

Houlihan Lokey Trading Down 1.0%

HLI opened at $141.74 on Thursday. The firm has a 50-day moving average price of $149.43 and a two-hundred day moving average price of $160.93. Houlihan Lokey, Inc. has a 1-year low of $133.83 and a 1-year high of $211.78. The stock has a market capitalization of $9.79 billion, a PE ratio of 22.79, a PEG ratio of 1.11 and a beta of 0.95.

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

Houlihan Lokey Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a $0.70 dividend. This is a boost from Houlihan Lokey's previous quarterly dividend of $0.60. The ex-dividend date was Monday, June 1st. This represents a $2.80 annualized dividend and a yield of 2.0%. Houlihan Lokey's dividend payout ratio is presently 45.02%.

Insider Activity at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the business's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $150.26, for a total value of $941,378.90. Following the completion of the transaction, the chairman owned 6,265 shares in the company, valued at $941,378.90. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of the business's stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $143.40, for a total transaction of $71,700.00. Following the completion of the transaction, the general counsel owned 500 shares of the company's stock, valued at $71,700. This trade represents a 50.00% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 22.83% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have recently commented on HLI. Keefe, Bruyette & Woods reduced their target price on Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating on the stock in a report on Thursday, May 7th. Zacks Research raised Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. Weiss Ratings downgraded Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. UBS Group set a $160.00 target price on Houlihan Lokey in a report on Thursday, May 7th. Finally, Morgan Stanley reduced their target price on Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Five research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $191.29.

About Houlihan Lokey

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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