Hamilton Lane (NASDAQ:HLNE) Hits New 1-Year Low - Should You Sell?

Key Points

• Hamilton Lane shares hit a new 52-week low on Tuesday, falling to as low as $75.77 and trading about 5.3% lower, well below both its 50-day and 200-day moving averages.
• Despite the stock weakness, the company beat EPS expectations in its latest quarterly report, posting $1.49 per share versus $1.43 expected, though revenue came in below forecasts and was down 2.2% year over year.
• The company has been supporting shareholders with higher dividends and buybacks, lifting its quarterly dividend to $0.60 per share and authorizing a $100 million stock repurchase program, while insiders also bought shares recently.

Shares of Hamilton Lane Inc. (NASDAQ:HLNE - Get Free Report) hit a new 52-week low during trading on Tuesday . The stock traded as low as $75.77 and last traded at $75.86, with a volume of 286738 shares traded. The stock had previously closed at $79.51.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on HLNE shares. BMO Capital Markets lowered their price objective on shares of Hamilton Lane from $108.00 to $102.00 and set an "outperform" rating for the company in a research note on Friday, May 22nd. The Goldman Sachs Group set a $148.00 target price on Hamilton Lane and gave the stock a "buy" rating in a research report on Friday, May 22nd. Zacks Research cut Hamilton Lane from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. Morgan Stanley lowered their price target on Hamilton Lane from $159.00 to $141.00 and set an "equal weight" rating for the company in a research report on Tuesday, April 21st. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Hamilton Lane in a research note on Wednesday, June 3rd. Six investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, Hamilton Lane presently has an average rating of "Moderate Buy" and a consensus target price of $149.62.

Hamilton Lane Trading Down 5.3%

The stock has a market capitalization of $4.18 billion, a price-to-earnings ratio of 12.71 and a beta of 1.14. The firm has a 50-day moving average of $89.38 and a 200 day moving average of $111.42.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) last posted its earnings results on Thursday, May 21st. The company reported $1.49 EPS for the quarter, topping analysts' consensus estimates of $1.43 by $0.06. Hamilton Lane had a net margin of 32.83% and a return on equity of 25.98%. The business had revenue of $193.57 million for the quarter, compared to analysts' expectations of $203.05 million. During the same period in the previous year, the company posted $1.21 earnings per share. The business's revenue for the quarter was down 2.2% compared to the same quarter last year. As a group, research analysts forecast that Hamilton Lane Inc. will post 6.33 EPS for the current year.

Hamilton Lane Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Thursday, June 18th will be given a dividend of $0.60 per share. The ex-dividend date of this dividend is Thursday, June 18th. This is a positive change from Hamilton Lane's previous quarterly dividend of $0.54. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.2%. Hamilton Lane's dividend payout ratio is presently 40.61%.

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

Insider Transactions at Hamilton Lane

In other Hamilton Lane news, Chairman Hartley R. Rogers purchased 55,000 shares of Hamilton Lane stock in a transaction that occurred on Tuesday, May 26th. The stock was purchased at an average price of $90.05 per share, with a total value of $4,952,750.00. Following the completion of the acquisition, the chairman owned 55,000 shares of the company's stock, valued at approximately $4,952,750. This trade represents a ∞ increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Andrea Anigati Kramer acquired 1,283 shares of the stock in a transaction on Thursday, June 11th. The shares were acquired at an average price of $77.46 per share, with a total value of $99,381.18. Following the purchase, the chief operating officer owned 87,350 shares in the company, valued at $6,766,131. This represents a 1.49% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders purchased 95,039 shares of company stock valued at $8,100,739 in the last three months. 22.21% of the stock is currently owned by company insiders.

Institutional Trading of Hamilton Lane

A number of hedge funds and other institutional investors have recently made changes to their positions in HLNE. Quarry LP grew its holdings in Hamilton Lane by 2,557.1% during the 3rd quarter. Quarry LP now owns 186 shares of the company's stock worth $25,000 after acquiring an additional 179 shares in the last quarter. Advisory Services Network LLC bought a new position in shares of Hamilton Lane during the third quarter worth about $26,000. Parallel Advisors LLC lifted its position in shares of Hamilton Lane by 81.2% during the fourth quarter. Parallel Advisors LLC now owns 241 shares of the company's stock worth $32,000 after purchasing an additional 108 shares during the last quarter. Geneos Wealth Management Inc. grew its stake in Hamilton Lane by 196.9% in the first quarter. Geneos Wealth Management Inc. now owns 383 shares of the company's stock worth $57,000 after purchasing an additional 254 shares in the last quarter. Finally, Whittier Trust Co. of Nevada Inc. grew its stake in Hamilton Lane by 27.7% in the fourth quarter. Whittier Trust Co. of Nevada Inc. now owns 415 shares of the company's stock worth $61,000 after purchasing an additional 90 shares in the last quarter. Institutional investors own 97.40% of the company's stock.

Hamilton Lane Company Profile

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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