Hamilton Lane (NASDAQ:HLNE) Shares Down 7.6% - Here's Why

Key Points

• Shares down 7.6% to about $96.53 on Wednesday, trading well below the 50‑ and 200‑day moving averages (~$131) on unusually light volume (108,879 shares, down 84% vs. average).
• Quarterly beat: Hamilton Lane reported EPS of $1.55 vs. $1.28 expected and revenue of $198.6M (+18% YoY), prompting analyst upgrades and higher targets (Oppenheimer to $230; MarketBeat consensus target $169, "Moderate Buy").
• The company announced a quarterly dividend of $0.54 (annualized $2.16, ~2.2% yield) and remains highly institutionally owned (about 97% by hedge funds and other institutions).

Shares of Hamilton Lane Inc. (NASDAQ:HLNE - Get Free Report) fell 7.6% on Wednesday . The stock traded as low as $98.87 and last traded at $96.5310. 108,879 shares traded hands during trading, a decline of 84% from the average session volume of 663,668 shares. The stock had previously closed at $104.48.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on HLNE shares. Zacks Research upgraded shares of Hamilton Lane from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, February 4th. Weiss Ratings reissued a "hold (c+)" rating on shares of Hamilton Lane in a report on Thursday, January 22nd. Oppenheimer raised their target price on Hamilton Lane from $220.00 to $230.00 and gave the stock an "outperform" rating in a research note on Wednesday, February 4th. JPMorgan Chase & Co. lifted their price target on Hamilton Lane from $164.00 to $166.00 and gave the stock a "neutral" rating in a research report on Wednesday, February 4th. Finally, Morgan Stanley set a $159.00 price objective on Hamilton Lane in a report on Tuesday, January 27th. Two equities research analysts have rated the stock with a Strong Buy rating, four have assigned a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $169.00.

Hamilton Lane Stock Down 6.3%

The stock has a market cap of $5.46 billion, a PE ratio of 17.59 and a beta of 1.32. The business has a 50 day moving average price of $131.04 and a 200 day moving average price of $131.88. The company has a quick ratio of 3.27, a current ratio of 3.27 and a debt-to-equity ratio of 0.21.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $1.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.28 by $0.27. The company had revenue of $198.59 million during the quarter, compared to the consensus estimate of $195.36 million. Hamilton Lane had a return on equity of 27.82% and a net margin of 30.59%.Hamilton Lane's revenue for the quarter was up 18.0% on a year-over-year basis. During the same period in the previous year, the company posted $1.25 earnings per share. Equities research analysts expect that Hamilton Lane Inc. will post 4.97 EPS for the current fiscal year.

Hamilton Lane Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, April 6th. Investors of record on Friday, March 20th will be issued a dividend of $0.54 per share. The ex-dividend date of this dividend is Friday, March 20th. This represents a $2.16 dividend on an annualized basis and a yield of 2.2%. Hamilton Lane's dividend payout ratio is 38.78%.

Institutional Investors Weigh In On Hamilton Lane

Several hedge funds have recently modified their holdings of the company. Pacer Advisors Inc. increased its stake in shares of Hamilton Lane by 12.5% in the 4th quarter. Pacer Advisors Inc. now owns 5,995 shares of the company's stock valued at $805,000 after purchasing an additional 665 shares in the last quarter. Mercer Global Advisors Inc. ADV purchased a new position in Hamilton Lane during the fourth quarter worth approximately $279,000. Fuller & Thaler Asset Management Inc. grew its holdings in Hamilton Lane by 39.2% in the fourth quarter. Fuller & Thaler Asset Management Inc. now owns 60,401 shares of the company's stock valued at $8,113,000 after purchasing an additional 17,002 shares during the period. Empowered Funds LLC increased its position in shares of Hamilton Lane by 2.8% in the fourth quarter. Empowered Funds LLC now owns 20,992 shares of the company's stock valued at $2,819,000 after buying an additional 571 shares in the last quarter. Finally, XTX Topco Ltd lifted its position in shares of Hamilton Lane by 827.2% during the 4th quarter. XTX Topco Ltd now owns 17,126 shares of the company's stock valued at $2,300,000 after buying an additional 15,279 shares in the last quarter. 97.40% of the stock is owned by hedge funds and other institutional investors.

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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