VELA Investment Management LLC Boosts Holdings in Houlihan Lokey, Inc. $HLI

Key Points

• VELA Investment Management increased its Houlihan Lokey stake by 63.1% in the second quarter, bringing its holdings to 26,300 shares valued at approximately $3.53 million. Institutional investors collectively own 78.07% of HLI.
• Houlihan Lokey reported weaker-than-expected quarterly results, with earnings per share of $1.35 versus the $1.64 consensus estimate and revenue of $511 million, down 15.6% year over year.
• The company declared a quarterly dividend of $0.70 per share, equivalent to $2.80 annually and a 2.0% yield. Analysts have a consensus “Hold” rating and an average price target of $166.38.

VELA Investment Management LLC grew its stake in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 63.1% during the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 26,300 shares of the financial services provider's stock after purchasing an additional 10,170 shares during the quarter. VELA Investment Management LLC's holdings in Houlihan Lokey were worth $3,528,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also modified their holdings of HLI. Core Wealth Advisors LLC purchased a new position in Houlihan Lokey in the 4th quarter valued at about $32,000. Eurizon Capital SGR S.p.A. purchased a new stake in Houlihan Lokey during the 4th quarter worth approximately $33,000. Strategic Wealth Investment Group LLC acquired a new position in shares of Houlihan Lokey during the second quarter valued at approximately $39,000. Annis Gardner Whiting Capital Advisors LLC raised its holdings in shares of Houlihan Lokey by 103.4% during the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 236 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 120 shares during the last quarter. Finally, CIBC Private Wealth Group LLC lifted its position in shares of Houlihan Lokey by 177.0% in the fourth quarter. CIBC Private Wealth Group LLC now owns 277 shares of the financial services provider's stock valued at $48,000 after acquiring an additional 177 shares in the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

Houlihan Lokey Stock Down 0.0%

Shares of NYSE:HLI opened at $137.05 on Monday. Houlihan Lokey, Inc. has a 52-week low of $112.83 and a 52-week high of $211.78. The stock has a market cap of $9.46 billion, a P/E ratio of 23.03, a PEG ratio of 1.58 and a beta of 0.96. The business has a fifty day moving average of $133.63 and a two-hundred day moving average of $143.55.

Houlihan Lokey (NYSE:HLI - Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing the consensus estimate of $1.64 by ($0.29). Houlihan Lokey had a net margin of 16.10% and a return on equity of 20.20%. The firm had revenue of $511.00 million for the quarter, compared to analyst estimates of $602.38 million. During the same period in the previous year, the firm posted $2.14 EPS. The company's revenue was down 15.6% compared to the same quarter last year. On average, equities analysts anticipate that Houlihan Lokey, Inc. will post 6.93 earnings per share for the current year.

Houlihan Lokey Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a $0.70 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $2.80 dividend on an annualized basis and a yield of 2.0%. Houlihan Lokey's dividend payout ratio is currently 47.06%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on HLI. UBS Group lowered their price target on Houlihan Lokey from $161.00 to $147.00 and set a "neutral" rating on the stock in a research note on Thursday, July 30th. Wolfe Research upgraded Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a report on Thursday, July 9th. Zacks Research cut shares of Houlihan Lokey from a "hold" rating to a "strong sell" rating in a research note on Friday, August 21st. The Goldman Sachs Group lowered their target price on shares of Houlihan Lokey from $171.00 to $148.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Finally, Morgan Stanley reduced their target price on shares of Houlihan Lokey from $187.00 to $177.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Five research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $166.38.

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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