Houlihan Lokey, Inc. (NYSE:HLI) Given Average Recommendation of "Hold" by Analysts

Key Points

• Houlihan Lokey has an average analyst rating of "Hold" from nine covering firms, with five buy ratings, three holds, and one sell. The average 12-month price target is about $191.29.
• The stock was trading down about 1.3% at $139.38, near its 1-year low of $134.41 and well below its 1-year high of $211.78. The company also reported quarterly earnings and revenue that missed analyst estimates.
• Houlihan Lokey raised its quarterly dividend to $0.70 per share from $0.60, implying a 2.0% annualized yield. The article also noted recent insider selling, including a share sale by Chairman Scott L. Beiser.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) have been given an average recommendation of "Hold" by the nine ratings firms that are currently covering the stock, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, three have issued a hold rating and five have assigned a buy rating to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $191.2857.

A number of research analysts recently weighed in on the company. UBS Group set a $160.00 target price on Houlihan Lokey in a report on Thursday, May 7th. Keefe, Bruyette & Woods decreased their target price on Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating on the stock in a report on Thursday, May 7th. Zacks Research lowered Houlihan Lokey from a "hold" rating to a "strong sell" rating in a report on Wednesday, May 13th. Morgan Stanley decreased their target price on Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Finally, Weiss Ratings downgraded Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a research note on Tuesday, April 21st.

Houlihan Lokey Trading Down 1.3%

HLI stock opened at $139.38 on Friday. The firm has a market capitalization of $9.63 billion, a PE ratio of 22.41, a PEG ratio of 1.10 and a beta of 0.95. Houlihan Lokey has a 1-year low of $134.41 and a 1-year high of $211.78. The business's 50 day simple moving average is $149.75 and its 200 day simple moving average is $162.96.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its 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). The business had revenue of $635.64 million for the quarter, compared to analyst estimates of $679.22 million. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The firm's revenue was down 4.6% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.96 earnings per share. As a group, sell-side analysts predict that Houlihan Lokey will post 8.54 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

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

Insider Buying and Selling at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the business's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total value of $941,378.90. Following the completion of the sale, the chairman directly owned 6,265 shares in the company, valued at $941,378.90. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of the business's stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total value of $71,700.00. Following the completion of the sale, the general counsel owned 500 shares of the company's stock, valued at $71,700. This trade represents a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 22.83% of the company's stock.

Institutional Trading of Houlihan Lokey

Several institutional investors have recently added to or reduced their stakes in the company. ING Groep NV bought a new stake in shares of Houlihan Lokey during the 3rd quarter valued at $4,640,000. JPMorgan Chase & Co. lifted its position in shares of Houlihan Lokey by 9.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 174,695 shares of the financial services provider's stock valued at $35,868,000 after acquiring an additional 14,483 shares during the period. Wealth High Governance Capital Ltda lifted its position in shares of Houlihan Lokey by 45.2% during the 3rd quarter. Wealth High Governance Capital Ltda now owns 72,000 shares of the financial services provider's stock valued at $14,783,000 after acquiring an additional 22,400 shares during the period. King Luther Capital Management Corp lifted its position in shares of Houlihan Lokey by 639.9% during the 3rd quarter. King Luther Capital Management Corp now owns 44,578 shares of the financial services provider's stock valued at $9,153,000 after acquiring an additional 38,553 shares during the period. Finally, Robinhood Asset Management LLC bought a new stake in shares of Houlihan Lokey during the 4th quarter valued at $6,862,000. 78.07% of the stock is currently owned by institutional investors.

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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