Polen Capital Management LLC Cuts Stock Position in Houlihan Lokey, Inc. (NYSE:HLI)

Key Points

• Polen Capital Management LLC has reduced its stake in Houlihan Lokey, Inc. by 10.3%, now holding 32,295 shares valued at $5.2 million.
• Various institutional investors, including Cerity Partners LLC and Invesco Ltd., have increased their positions significantly, indicating strong interest in the company.
• Houlihan Lokey announced a quarterly dividend of $0.60 per share, reflecting a 1.3% dividend yield, with a payout ratio of 40.40%.

Polen Capital Management LLC lessened its position in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 10.3% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 32,295 shares of the financial services provider's stock after selling 3,704 shares during the quarter. Polen Capital Management LLC's holdings in Houlihan Lokey were worth $5,216,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently modified their holdings of HLI. Cerity Partners LLC raised its holdings in shares of Houlihan Lokey by 44.8% in the 4th quarter. Cerity Partners LLC now owns 3,331 shares of the financial services provider's stock valued at $572,000 after buying an additional 1,031 shares during the period. Bank of Montreal Can raised its holdings in shares of Houlihan Lokey by 6.7% in the 4th quarter. Bank of Montreal Can now owns 25,808 shares of the financial services provider's stock valued at $4,482,000 after buying an additional 1,612 shares during the period. Invesco Ltd. raised its holdings in shares of Houlihan Lokey by 122.7% in the 4th quarter. Invesco Ltd. now owns 1,041,201 shares of the financial services provider's stock valued at $180,815,000 after buying an additional 573,745 shares during the period. Advisory Services Network LLC increased its holdings in Houlihan Lokey by 165.1% during the 4th quarter. Advisory Services Network LLC now owns 6,631 shares of the financial services provider's stock worth $1,152,000 after purchasing an additional 4,130 shares during the period. Finally, Capital Fund Management S.A. purchased a new stake in Houlihan Lokey during the 4th quarter worth about $3,002,000. Hedge funds and other institutional investors own 78.07% of the company's stock.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Morgan Stanley restated an "overweight" rating and set a $192.00 price target (up previously from $159.00) on shares of Houlihan Lokey in a report on Monday, June 23rd. Keefe, Bruyette & Woods upgraded Houlihan Lokey from a "hold" rating to a "moderate buy" rating and upped their price target for the stock from $185.00 to $232.00 in a report on Monday, July 14th. Wells Fargo & Company upped their price target on Houlihan Lokey from $185.00 to $209.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. Finally, Wall Street Zen downgraded Houlihan Lokey from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Three investment analysts have rated the stock with a hold rating and three have given a buy rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $206.40.

Houlihan Lokey Stock Performance

NYSE:HLI opened at $189.07 on Friday. The stock has a 50-day simple moving average of $184.67 and a 200-day simple moving average of $173.38. The stock has a market cap of $13.20 billion, a P/E ratio of 31.83 and a beta of 0.86. Houlihan Lokey, Inc. has a 1 year low of $137.99 and a 1 year high of $198.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The financial services provider reported $2.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.69 by $0.45. The business had revenue of $605.35 million during the quarter, compared to analysts' expectations of $573.07 million. Houlihan Lokey had a return on equity of 23.75% and a net margin of 16.46%. The business's quarterly revenue was up 17.8% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.22 EPS. On average, equities research analysts predict that Houlihan Lokey, Inc. will post 5.98 EPS for the current year.

Houlihan Lokey Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a $0.60 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.3%. Houlihan Lokey's dividend payout ratio is 40.40%.

Insider Activity at Houlihan Lokey

In related news, Chairman Irwin Gold sold 5,000 shares of the company's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $182.81, for a total value of $914,050.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of the company's stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $173.02, for a total value of $86,510.00. The disclosure for this sale can be found here. Insiders sold a total of 13,508 shares of company stock valued at $2,431,670 in the last three months. 22.83% of the stock is currently owned by company insiders.

Houlihan Lokey Company Profile

Houlihan Lokey, Inc, an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.

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