Hamilton Lane (NASDAQ:HLNE) Shares Gap Down - Should You Sell?

Key Points

• Hamilton Lane shares gapped down sharply before the open, falling from a prior close of $84.86 to an opening price of $80.41 and last trading around $78.72.
• Despite the drop, Wall Street sentiment remains mostly positive: the stock has a Moderate Buy consensus, with an average price target of $150, though some analysts have recently cut targets or downgraded the stock.
• The company reported better-than-expected EPS of $1.49, raised its quarterly dividend to $0.60 per share, and authorized a $100 million share buyback, while Chairman Hartley R. Rogers also bought 55,000 shares.

Hamilton Lane Inc. (NASDAQ:HLNE - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $84.86, but opened at $80.41. Hamilton Lane shares last traded at $78.72, with a volume of 276,298 shares trading hands.

Wall Street Analyst Weigh In

Several analysts have recently issued reports on the company. The Goldman Sachs Group set a $148.00 price target on Hamilton Lane and gave the stock a "buy" rating in a research note on Friday, May 22nd. Keefe, Bruyette & Woods reissued an "outperform" rating on shares of Hamilton Lane in a research note on Friday, May 22nd. JPMorgan Chase & Co. reduced their target price on Hamilton Lane from $166.00 to $148.00 and set an "overweight" rating for the company in a report on Monday, May 18th. Morgan Stanley lowered their price target on Hamilton Lane from $159.00 to $141.00 and set an "equal weight" rating on the stock in a report on Tuesday, April 21st. Finally, Zacks Research lowered shares of 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 four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $150.00.

Hamilton Lane Price Performance

The stock's fifty day simple moving average is $94.19 and its 200-day simple moving average is $116.01. The company has a market capitalization of $4.35 billion, a P/E ratio of 13.25 and a beta of 1.14.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) last released its quarterly earnings results on Thursday, May 21st. The company reported $1.49 earnings per share (EPS) for the quarter, beating 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 company had revenue of $193.57 million during the quarter, compared to analysts' expectations of $203.05 million. During the same period in the prior year, the company earned $1.21 earnings per share. The business's quarterly revenue was down 2.2% compared to the same quarter last year. On average, research analysts predict that Hamilton Lane Inc. will post 6.33 earnings per share for the current year.

Hamilton Lane Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, July 7th. Stockholders of record on Thursday, June 18th will be issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a dividend yield of 3.1%. This is a boost from Hamilton Lane's previous quarterly dividend of $0.54. The ex-dividend date is Thursday, June 18th. Hamilton Lane's dividend payout ratio is presently 36.55%.

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

Insider Activity at Hamilton Lane

In other Hamilton Lane news, Chairman Hartley R. Rogers purchased 55,000 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was bought at an average cost of $90.05 per share, for a total transaction of $4,952,750.00. Following the completion of the acquisition, the chairman directly owned 55,000 shares in the company, valued at $4,952,750. This represents a ∞ increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 22.21% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Whittier Trust Co. of Nevada Inc. lifted its holdings in shares of Hamilton Lane by 27.7% during the fourth quarter. Whittier Trust Co. of Nevada Inc. now owns 415 shares of the company's stock worth $61,000 after buying an additional 90 shares during the last quarter. Hantz Financial Services Inc. lifted its holdings in shares of Hamilton Lane by 80.5% during the third quarter. Hantz Financial Services Inc. now owns 213 shares of the company's stock worth $29,000 after buying an additional 95 shares during the last quarter. State of Michigan Retirement System lifted its holdings in shares of Hamilton Lane by 1.0% during the fourth quarter. State of Michigan Retirement System now owns 9,700 shares of the company's stock worth $1,303,000 after buying an additional 100 shares during the last quarter. Steward Partners Investment Advisory LLC lifted its position in shares of Hamilton Lane by 12.9% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 899 shares of the company's stock worth $121,000 after acquiring an additional 103 shares during the period. Finally, Parallel Advisors LLC lifted its position 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. 97.40% of the stock is currently owned by institutional investors and hedge funds.

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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