Norges Bank Invests $115.48 Million in Houlihan Lokey, Inc. $HLI

Key Points

• Norges Bank opened a new position in Houlihan Lokey, buying 662,940 shares worth about $115.48 million in the fourth quarter and ending with roughly 0.95% ownership.
• Houlihan Lokey reported mixed quarterly results, with earnings per share of $1.63 versus expectations of $1.79 and revenue of $635.64 million versus the $679.22 million estimate, while revenue fell 4.6% year over year.
• The company raised its quarterly dividend to $0.70 per share from $0.60, and the new payout implies an annualized dividend of $2.80 with a 2.0% yield.

Norges Bank acquired a new position in shares of Houlihan Lokey, Inc. (NYSE:HLI - Free Report) in the fourth quarter, according to its most recent 13F filing with the SEC. The institutional investor acquired 662,940 shares of the financial services provider's stock, valued at approximately $115,478,000. Norges Bank owned about 0.95% of Houlihan Lokey at the end of the most recent reporting period.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in HLI. Vanguard Group Inc. lifted its position in shares of Houlihan Lokey by 0.3% during the third quarter. Vanguard Group Inc. now owns 5,305,182 shares of the financial services provider's stock valued at $1,089,260,000 after buying an additional 13,750 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Houlihan Lokey by 6.4% in the 4th quarter. Geode Capital Management LLC now owns 1,418,549 shares of the financial services provider's stock worth $247,133,000 after buying an additional 84,757 shares during the last quarter. Bank of America Corp DE raised its stake in shares of Houlihan Lokey by 4.1% during the 2nd quarter. Bank of America Corp DE now owns 1,041,990 shares of the financial services provider's stock worth $187,506,000 after acquiring an additional 41,470 shares in the last quarter. Capital Research Global Investors raised its stake in shares of Houlihan Lokey by 19.7% during the 3rd quarter. Capital Research Global Investors now owns 956,441 shares of the financial services provider's stock worth $196,376,000 after acquiring an additional 157,605 shares in the last quarter. Finally, Raymond James Financial Inc. lifted its position in Houlihan Lokey by 10.4% during the second quarter. Raymond James Financial Inc. now owns 874,078 shares of the financial services provider's stock valued at $157,291,000 after acquiring an additional 82,002 shares during the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

Houlihan Lokey Trading Up 1.8%

NYSE:HLI opened at $140.95 on Friday. Houlihan Lokey, Inc. has a twelve month low of $134.41 and a twelve month high of $211.78. The company has a market cap of $9.73 billion, a PE ratio of 22.66, a P/E/G ratio of 1.08 and a beta of 0.95. The company's 50 day moving average is $149.80 and its two-hundred day moving average is $163.12.

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 analysts' consensus estimates 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 analysts' expectations of $679.22 million. During the same period in the prior year, the business posted $1.96 EPS. The company's quarterly revenue was down 4.6% on a year-over-year basis. As a group, analysts expect that Houlihan Lokey, Inc. will post 8.54 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be issued a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Houlihan Lokey's previous quarterly dividend of $0.60. The ex-dividend date of this dividend is Monday, June 1st. Houlihan Lokey's dividend payout ratio is presently 45.02%.

Insider Buying and Selling at Houlihan Lokey

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of Houlihan Lokey stock in a transaction dated 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 sale, the chairman owned 6,265 shares of the company's stock, valued at approximately $941,378.90. The trade was a 50.00% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, General Counsel Christopher M. Crain sold 500 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total value of $71,700.00. Following the sale, the general counsel owned 500 shares in the company, valued at approximately $71,700. The trade was a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.83% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Keefe, Bruyette & Woods lowered their target price on shares of Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating for the company in a research note on Thursday, May 7th. UBS Group set a $160.00 price target on Houlihan Lokey in a research report on Thursday, May 7th. Weiss Ratings lowered Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. The Goldman Sachs Group lowered their price objective on Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Finally, Zacks Research downgraded Houlihan Lokey from a "hold" rating to a "strong sell" rating in a research note on Wednesday, May 13th. Five investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $191.29.

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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