Hamilton Lane (NASDAQ:HLNE) Announces Earnings Results, Beats Estimates By $0.41 EPS

Key Points

• Hamilton Lane beat earnings estimates: The company reported quarterly EPS of $1.94, topping the $1.53 consensus by $0.41, while revenue increased 56.5% year over year.
• Shareholder returns increased: Hamilton Lane raised its quarterly dividend from $0.54 to $0.60 per share, or $2.40 annually, and authorized a $100 million share repurchase program covering up to 2% of outstanding shares.
• Analysts remain moderately bullish: The stock has a consensus “Moderate Buy” rating and an average price target of $131.71, despite several firms recently lowering their targets.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) issued its quarterly earnings data on Tuesday. The company reported $1.94 EPS for the quarter, beating the consensus estimate of $1.53 by $0.41, Zacks reports. Hamilton Lane had a return on equity of 25.98% and a net margin of 32.83%.The business's quarterly revenue was up 56.5% compared to the same quarter last year. During the same period last year, the company earned $1.47 EPS.

Hamilton Lane Price Performance

HLNE opened at $94.91 on Tuesday. Hamilton Lane has a 12 month low of $71.88 and a 12 month high of $161.13. The business has a 50-day moving average of $82.72 and a two-hundred day moving average of $100.08. The stock has a market capitalization of $5.27 billion, a price-to-earnings ratio of 16.06 and a beta of 1.14.

Hamilton Lane Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, July 7th. Investors of record on Thursday, June 18th were given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 2.5%. This is an increase from Hamilton Lane's previous quarterly dividend of $0.54. The ex-dividend date was Thursday, June 18th. Hamilton Lane's dividend payout ratio (DPR) is 40.61%.

Hamilton Lane announced that its board has initiated a stock repurchase program on Thursday, May 21st that allows the company to buyback $100.00 million in outstanding shares. This buyback authorization allows the company to buy up to 2% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's leadership believes its shares are undervalued.

Insider Activity at Hamilton Lane

In other news, COO Andrea Anigati Kramer acquired 1,283 shares of the company's stock in a transaction dated Thursday, June 11th. The shares were bought at an average price of $77.46 per share, for a total transaction of $99,381.18. Following the completion of the purchase, the chief operating officer directly owned 87,350 shares of the company's stock, valued at approximately $6,766,131. This trade represents a 1.49% increase in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, Chairman Hartley R. Rogers bought 55,000 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were acquired at an average cost of $90.05 per share, for a total transaction of $4,952,750.00. Following the completion of the transaction, the chairman owned 55,000 shares of the company's stock, valued at approximately $4,952,750. The trade was a ∞ increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have purchased 95,039 shares of company stock valued at $8,100,739 in the last ninety days. 23.99% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Hamilton Lane

Hedge funds have recently made changes to their positions in the business. Quarry LP grew its position in Hamilton Lane by 2,557.1% in the 3rd quarter. Quarry LP now owns 186 shares of the company's stock valued at $25,000 after buying an additional 179 shares in the last quarter. Advisory Services Network LLC acquired a new stake in shares of Hamilton Lane in the 3rd quarter worth approximately $26,000. Parallel Advisors LLC lifted its stake in shares of Hamilton Lane by 81.2% in the 4th quarter. Parallel Advisors LLC now owns 241 shares of the company's stock worth $32,000 after acquiring an additional 108 shares during the period. Geneos Wealth Management Inc. boosted its holdings in shares of Hamilton Lane by 196.9% in the first quarter. Geneos Wealth Management Inc. now owns 383 shares of the company's stock valued at $57,000 after acquiring an additional 254 shares in the last quarter. Finally, Arax Advisory Partners acquired a new position in shares of Hamilton Lane during the fourth quarter valued at approximately $71,000. Institutional investors own 97.40% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on HLNE. Weiss Ratings downgraded Hamilton Lane from a "hold (c)" rating to a "hold (c-)" rating in a research report on Monday, July 20th. Morgan Stanley reduced their price objective on shares of Hamilton Lane from $141.00 to $123.00 and set an "equal weight" rating on the stock in a report on Tuesday, July 21st. Oppenheimer lowered their target price on shares of Hamilton Lane from $176.00 to $174.00 and set an "outperform" rating for the company in a research note on Friday, July 17th. Keefe, Bruyette & Woods cut their price target on Hamilton Lane from $115.00 to $105.00 and set an "outperform" rating on the stock in a research note on Friday, July 10th. Finally, Zacks Research cut Hamilton Lane from a "strong-buy" rating to a "hold" rating in a research report on Monday, April 6th. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $131.71.

About Hamilton Lane

Hamilton Lane is a global private markets investment management firm specializing in the full spectrum of private equity and credit strategies. The company partners with institutional investors and wealth managers to design, implement and manage customized portfolios in primary fund investing, secondary market transactions and direct co-investment opportunities. By combining investment selection, portfolio construction and ongoing monitoring, Hamilton Lane seeks to optimize risk-adjusted returns across diverse private markets exposures.

Founded in 1991, Hamilton Lane has developed a track record of investment and advisory services in private markets.

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