VELA Investment Management LLC Buys 9,734 Shares of Houlihan Lokey, Inc. $HLI

Key Points

• VELA Investment Management increased its Houlihan Lokey stake by 62.3%, purchasing 9,734 additional shares to hold 25,348 shares worth approximately $3.4 million. Institutional investors collectively own 78.07% of the company.
• Houlihan Lokey reported weaker-than-expected quarterly results, with EPS of $1.35 versus the $1.64 consensus and revenue of $511 million versus $602.38 million expected; revenue declined 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. Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $166.38.

VELA Investment Management LLC increased its stake in Houlihan Lokey, Inc. (NYSE:HLI - Free Report) by 62.3% in the 2nd quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 25,348 shares of the financial services provider's stock after purchasing an additional 9,734 shares during the quarter. VELA Investment Management LLC's holdings in Houlihan Lokey were worth $3,400,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Core Wealth Advisors LLC bought a new position in Houlihan Lokey in the 4th quarter worth about $32,000. Eurizon Capital SGR S.p.A. bought a new stake in shares of Houlihan Lokey during the fourth quarter valued at about $33,000. Annis Gardner Whiting Capital Advisors LLC increased its position 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 buying an additional 120 shares during the period. Strategic Wealth Investment Group LLC purchased a new stake in shares of Houlihan Lokey in the second quarter worth about $39,000. Finally, CIBC Private Wealth Group LLC lifted its holdings 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 worth $48,000 after buying an additional 177 shares in the last quarter. 78.07% of the stock is currently owned by institutional investors.

Houlihan Lokey Trading Down 0.0%

Shares of HLI opened at $137.05 on Tuesday. Houlihan Lokey, Inc. has a 12-month low of $112.83 and a 12-month high of $211.78. The company has a market cap of $9.46 billion, a PE ratio of 23.03, a price-to-earnings-growth ratio of 1.58 and a beta of 0.96. The stock has a 50-day moving average price of $133.72 and a 200-day moving average price of $143.35.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings data 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). The company had revenue of $511.00 million during the quarter, compared to the consensus estimate of $602.38 million. Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.The firm's revenue for the quarter was down 15.6% on a year-over-year basis. During the same quarter last year, the company posted $2.14 earnings per share. As a group, analysts predict that Houlihan Lokey, Inc. will post 6.93 earnings per share for the current year.

Houlihan Lokey Dividend Announcement

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

Analyst Upgrades and Downgrades

A number of research firms have recently commented on HLI. Wolfe Research upgraded shares of Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. BMO Capital Markets lowered their target price on shares of Houlihan Lokey from $160.00 to $145.00 and set an "outperform" rating on the stock in a research note on Monday, August 3rd. Zacks Research cut shares of Houlihan Lokey from a "hold" rating to a "strong sell" rating in a research note on Friday, August 21st. Keefe, Bruyette & Woods cut their price target on shares of Houlihan Lokey from $160.00 to $153.00 and set an "outperform" rating for the company in a report on Thursday, July 30th. Finally, The Goldman Sachs Group reduced their price target on shares of Houlihan Lokey from $171.00 to $148.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Five analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $166.38.

Houlihan Lokey Company 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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