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

Key Points

• Analyst sentiment is moderately positive: Houlihan Lokey has a “Moderate Buy” consensus from 10 analysts, split between five buy and five hold ratings, with an average 12-month price target of $166.38 versus a recent price of $130.33.
• Quarterly results fell short of expectations: The company reported earnings of $1.35 per share versus the $1.64 consensus estimate, while revenue declined 15.6% year over year to $511 million.
• Institutional ownership remains high and shareholders received a dividend: Institutional investors own 78.07% of HLI, and the company declared a $0.70 quarterly dividend, equivalent to a 2.1% annualized yield.

Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) has earned a consensus rating of "Moderate Buy" from the ten research firms that are currently covering the firm, Marketbeat reports. Five research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The average 12 month price target among analysts that have covered the stock in the last year is $166.3750.

Several brokerages recently commented on HLI. Zacks Research upgraded Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. Weiss Ratings restated a "hold (c)" rating on shares of Houlihan Lokey in a report on Friday, July 17th. Wall Street Zen downgraded shares of Houlihan Lokey from a "hold" rating to a "sell" rating in a research report on Saturday, August 8th. US Capital Advisors set a $187.00 price target on shares of Houlihan Lokey in a research report on Thursday, July 9th. Finally, Bank of America started coverage on shares of Houlihan Lokey in a research note on Friday, July 10th. They issued a "buy" rating and a $164.00 price objective on the stock.

Institutional Trading of Houlihan Lokey

A number of institutional investors have recently bought and sold shares of HLI. Royal Bank of Canada lifted its stake in shares of Houlihan Lokey by 14.4% in the 1st quarter. Royal Bank of Canada now owns 49,584 shares of the financial services provider's stock valued at $8,008,000 after purchasing an additional 6,253 shares during the period. AQR Capital Management LLC boosted its position in shares of Houlihan Lokey by 50.0% during the 1st quarter. AQR Capital Management LLC now owns 29,654 shares of the financial services provider's stock valued at $4,598,000 after purchasing an additional 9,891 shares in the last quarter. Millennium Management LLC acquired a new stake in Houlihan Lokey during the first quarter worth approximately $18,964,000. Goldman Sachs Group Inc. grew its stake in Houlihan Lokey by 5.7% during the first quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider's stock worth $67,143,000 after purchasing an additional 22,553 shares during the period. Finally, Arrowstreet Capital Limited Partnership bought a new stake in Houlihan Lokey in the second quarter worth approximately $1,033,000. Institutional investors own 78.07% of the company's stock.

Houlihan Lokey Trading Up 2.6%

Shares of HLI opened at $130.33 on Thursday. The stock's 50-day moving average price is $135.50 and its two-hundred day moving average price is $146.64. Houlihan Lokey has a 12 month low of $112.83 and a 12 month high of $211.78. The company has a market capitalization of $9.00 billion, a PE ratio of 21.90, a PEG ratio of 1.44 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing the consensus estimate of $1.64 by ($0.29). Houlihan Lokey had a net margin of 16.10% and a return on equity of 20.20%. The company had revenue of $511.00 million during the quarter, compared to analyst estimates of $602.38 million. During the same period in the previous year, the company posted $2.14 EPS. The company's quarterly revenue was down 15.6% on a year-over-year basis. Equities research analysts predict that Houlihan Lokey will post 7.01 EPS for the current fiscal year.

Houlihan Lokey Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st will be issued a $0.70 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $2.80 annualized dividend and a yield of 2.1%. Houlihan Lokey's payout ratio is presently 47.06%.

About Houlihan Lokey

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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