Montanaro Asset Management Ltd Has $17.01 Million Stock Holdings in Houlihan Lokey, Inc. $HLI

Key Points

• Montanaro Asset Management increased its Houlihan Lokey stake by 9.7% in the fourth quarter, ending with 97,650 shares worth about $17.01 million. The position now represents 4.7% of the firm’s holdings and Houlihan Lokey is its fifth-largest holding.
• Insider selling included Chairman Scott L. Beiser selling 6,265 shares for about $941,379 and General Counsel Christopher M. Crain selling 500 shares under a Rule 10b5-1 plan. Despite these sales, insiders still own 22.83% of the company.
• Houlihan Lokey reported mixed quarterly results, with EPS of $1.63 missing estimates and revenue of $635.64 million also below expectations. The company also raised its quarterly dividend to $0.70 per share, and analysts currently have a consensus Moderate Buy rating with a $191.29 price target.

Montanaro Asset Management Ltd boosted its holdings in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 9.7% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 97,650 shares of the financial services provider's stock after buying an additional 8,650 shares during the quarter. Houlihan Lokey makes up 4.7% of Montanaro Asset Management Ltd's holdings, making the stock its 5th biggest holding. Montanaro Asset Management Ltd owned approximately 0.14% of Houlihan Lokey worth $17,010,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the business. Royal Bank of Canada lifted its holdings in shares of Houlihan Lokey by 14.4% in the first quarter. Royal Bank of Canada now owns 49,584 shares of the financial services provider's stock worth $8,008,000 after acquiring an additional 6,253 shares during the last quarter. AQR Capital Management LLC grew its holdings in shares of Houlihan Lokey by 50.0% during the 1st quarter. AQR Capital Management LLC now owns 29,654 shares of the financial services provider's stock valued at $4,598,000 after purchasing an additional 9,891 shares during the last quarter. Millennium Management LLC bought a new stake in shares of Houlihan Lokey during the 1st quarter valued at approximately $18,964,000. Goldman Sachs Group Inc. grew its holdings in shares of Houlihan Lokey by 5.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider's stock valued at $67,143,000 after purchasing an additional 22,553 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership acquired a new position in Houlihan Lokey during the 2nd quarter worth approximately $1,033,000. Institutional investors own 78.07% of the company's stock.

Insider Buying and Selling at Houlihan Lokey

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

Houlihan Lokey Price Performance

Shares of NYSE HLI opened at $140.88 on Friday. The company has a 50 day simple moving average of $149.26 and a 200 day simple moving average of $160.55. The firm has a market cap of $9.73 billion, a PE ratio of 22.65, a price-to-earnings-growth ratio of 1.09 and a beta of 0.95. Houlihan Lokey, Inc. has a 1 year low of $133.83 and a 1 year high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 EPS 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 business had revenue of $635.64 million for the quarter, compared to analyst estimates of $679.22 million. During the same quarter in the prior year, the business earned $1.96 earnings per share. The firm's quarterly revenue was down 4.6% on a year-over-year basis. As a group, research analysts anticipate that Houlihan Lokey, Inc. will post 8.54 earnings per share for the current fiscal year.

Houlihan Lokey Increases Dividend

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

Analysts Set New Price Targets

HLI has been the subject of several research reports. The Goldman Sachs Group dropped their price objective on shares of Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. Zacks Research upgraded shares of Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. Keefe, Bruyette & Woods lowered their price target on shares of Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating for the company in a report on Thursday, May 7th. UBS Group set a $160.00 price target on Houlihan Lokey in a research note on Thursday, May 7th. Finally, Weiss Ratings downgraded Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target 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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