Hamilton Lane (NASDAQ:HLNE) Hits New 12-Month Low - Here's What Happened

Key Points

• Hamilton Lane (NASDAQ:HLNE) fell to a new 52-week low on Thursday, trading as low as $76.05 and ending the session down about 2.1%.
• Recent analyst updates were mixed but still generally constructive: the stock has a Moderate Buy consensus with a $150 average price target, even after Morgan Stanley cut its target to $141.
• The company recently raised its quarterly dividend to $0.60 per share and authorized a $100 million share buyback, while its latest earnings beat EPS estimates but missed revenue expectations.

Hamilton Lane Inc. (NASDAQ:HLNE - Get Free Report) hit a new 52-week low during trading on Thursday . The company traded as low as $76.05 and last traded at $77.9070, with a volume of 17548 shares changing hands. The stock had previously closed at $78.09.

Analysts Set New Price Targets

HLNE has been the subject of a number of recent research reports. Morgan Stanley reduced their target price on shares of 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. Weiss Ratings reiterated a "hold (c)" rating on shares of Hamilton Lane in a research report on Wednesday, June 3rd. The Goldman Sachs Group set a $148.00 target price on shares of Hamilton Lane and gave the company a "buy" rating in a research report on Friday, May 22nd. Keefe, Bruyette & Woods restated an "outperform" rating on shares of Hamilton Lane in a research report on Friday, May 22nd. Finally, Oppenheimer raised their price objective on shares of Hamilton Lane from $171.00 to $179.00 and gave the stock an "outperform" rating in a research report on Friday, May 22nd. Six equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $150.00.

Hamilton Lane Stock Down 2.1%

The stock has a market capitalization of $4.25 billion, a price-to-earnings ratio of 12.95 and a beta of 1.14. The company's 50-day moving average is $91.69 and its 200-day moving average is $113.70.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The company reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.43 by $0.06. Hamilton Lane had a net margin of 32.83% and a return on equity of 25.98%. The firm had revenue of $193.57 million during the quarter, compared to analysts' expectations of $203.05 million. During the same period last year, the business earned $1.21 earnings per share. Hamilton Lane's revenue was down 2.2% compared to the same quarter last year. Sell-side analysts anticipate that Hamilton Lane Inc. will post 6.33 EPS for the current year.

Hamilton Lane Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Thursday, June 18th will be given a dividend of $0.60 per share. This is a boost 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 3.1%. The ex-dividend date is Thursday, June 18th. Hamilton Lane's dividend payout ratio (DPR) is 40.61%.

Hamilton Lane announced that its Board of Directors has authorized a share repurchase plan on Thursday, May 21st that authorizes the company to buyback $100.00 million in shares. This buyback authorization authorizes the company to repurchase up to 2% of its stock through open market purchases. Stock buyback plans are typically an indication that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Hamilton Lane

In related news, Chairman Hartley R. Rogers purchased 466 shares of the company's stock in a transaction on Wednesday, May 27th. The stock was acquired at an average cost of $92.76 per share, for a total transaction of $43,226.16. Following the completion of the transaction, the chairman directly owned 55,466 shares in the company, valued at approximately $5,145,026.16. The trade was a 0.85% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 22.21% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Hamilton Lane

A number of institutional investors have recently made changes to their positions in HLNE. Royal Bank of Canada increased its position in shares of Hamilton Lane by 6.0% during the first quarter. Royal Bank of Canada now owns 52,466 shares of the company's stock valued at $7,800,000 after acquiring an additional 2,948 shares during the last quarter. Jones Financial Companies Lllp increased its position in shares of Hamilton Lane by 4,806.7% during the first quarter. Jones Financial Companies Lllp now owns 5,103 shares of the company's stock valued at $759,000 after acquiring an additional 4,999 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Hamilton Lane by 196.9% during 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 during the last quarter. First Trust Advisors LP increased its position in shares of Hamilton Lane by 26.7% during the second quarter. First Trust Advisors LP now owns 31,483 shares of the company's stock valued at $4,474,000 after acquiring an additional 6,636 shares during the last quarter. Finally, Amundi increased its position in shares of Hamilton Lane by 39,766.7% during the second quarter. Amundi now owns 2,392 shares of the company's stock valued at $347,000 after acquiring an additional 2,386 shares during the last quarter. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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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