Houlihan Lokey, Inc. (NYSE:HLI) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Houlihan Lokey has a consensus analyst rating of “Moderate Buy”, with five buy ratings and five hold ratings among the ten brokerages covering the stock. The average 1-year price target is $180.50.
• The company recently reported quarterly earnings of $1.63 per share, missing estimates of $1.79, and revenue of $635.64 million, also below expectations. Revenue fell 4.6% year over year.
• Houlihan Lokey raised its quarterly dividend to $0.70 per share from $0.60, implying an annualized yield of about 2.0%. The company also saw a recent insider sale by Chairman Scott L. Beiser.

Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) has been given a consensus rating of "Moderate Buy" by the ten brokerages that are covering the firm, Marketbeat reports. Five equities research analysts have rated the stock with a hold recommendation and five have given a buy recommendation to the company. The average 1-year price target among brokerages that have covered the stock in the last year is $180.50.

A number of analysts recently commented on the company. US Capital Advisors set a $187.00 price objective on Houlihan Lokey in a research report on Thursday, July 9th. Wolfe Research raised shares of Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a research note on Thursday, July 9th. Keefe, Bruyette & Woods lowered their price target on shares of Houlihan Lokey from $172.00 to $160.00 and set an "outperform" rating for the company in a report on Friday, July 10th. Morgan Stanley cut their price objective on shares of Houlihan Lokey from $193.00 to $187.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Finally, The Goldman Sachs Group set a $164.00 price objective on shares of Houlihan Lokey in a research note on Friday, July 10th.

Houlihan Lokey Stock Performance

Houlihan Lokey stock opened at $140.17 on Friday. The stock has a fifty day moving average of $140.85 and a two-hundred day moving average of $153.78. The company has a market capitalization of $9.68 billion, a price-to-earnings ratio of 22.54, a PEG ratio of 1.19 and a beta of 0.95. Houlihan Lokey has a fifty-two week low of $130.72 and a fifty-two week high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share for the quarter, missing analysts' consensus estimates of $1.79 by ($0.16). Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The company had revenue of $635.64 million during the quarter, compared to analyst estimates of $679.22 million. The business's revenue was down 4.6% compared to the same quarter last year. During the same period last year, the firm earned $1.96 earnings per share. On average, analysts forecast that Houlihan Lokey will post 7.91 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Shareholders of record on Monday, June 1st were issued a $0.70 dividend. This is a boost from Houlihan Lokey's previous quarterly dividend of $0.60. The ex-dividend date was Monday, June 1st. This represents a $2.80 annualized dividend and a yield of 2.0%. Houlihan Lokey's payout ratio is presently 45.02%.

Insider Activity

In other news, Chairman Scott L. Beiser sold 6,265 shares of the firm's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total transaction of $941,378.90. Following the sale, the chairman owned 6,265 shares in the company, valued at $941,378.90. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 22.83% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Flagship Harbor Advisors LLC purchased a new position in Houlihan Lokey during the fourth quarter worth approximately $26,000. Oakworth Capital Inc. acquired a new stake in shares of Houlihan Lokey during the 4th quarter worth $29,000. Core Wealth Advisors LLC purchased a new position in shares of Houlihan Lokey in the 4th quarter worth $32,000. Eurizon Capital SGR S.p.A. acquired a new position in Houlihan Lokey in the fourth quarter valued at $33,000. Finally, Annis Gardner Whiting Capital Advisors LLC boosted its holdings in Houlihan Lokey by 103.4% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 236 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 120 shares during the last quarter. Institutional investors and hedge funds own 78.07% of the company's stock.

Houlihan Lokey Company Profile

Houlihan Lokey, Inc is a global investment bank and financial services firm founded in 1972 and headquartered in Los Angeles, California. The company specializes in advisory services across a broad range of transaction types and financial matters. Since its founding, Houlihan Lokey has grown to serve corporations, financial sponsors, and government entities worldwide, providing expertise in complex and high-stakes engagements.

The firm's core service offerings include mergers and acquisitions advisory, capital markets advisory, financial restructuring and distressed M&A, and valuation and fairness opinions.

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