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

Key Points

• Analyst sentiment is mixed but positive: Houlihan Lokey has a consensus rating of “Moderate Buy” from nine analysts, with five buy ratings and four hold ratings. The average 12-month price target is about $191.29.
• Recent earnings missed expectations: The company reported $1.63 EPS versus the expected $1.79 and revenue of $635.64 million versus estimates of $679.22 million. Revenue also fell 4.6% from the same quarter last year.
• The dividend was raised: Houlihan Lokey increased its quarterly dividend to $0.70 per share from $0.60, implying an annualized payout of $2.80 and a yield of about 1.9%.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) have earned a consensus rating of "Moderate Buy" from the nine brokerages that are currently covering the company, Marketbeat Ratings reports. Four equities research analysts have rated the stock with a hold recommendation and five have assigned a buy recommendation to the company. The average 12 month target price among analysts that have covered the stock in the last year is $191.2857.

HLI has been the topic of several recent research reports. BMO Capital Markets increased their price target on shares of Houlihan Lokey from $209.00 to $211.00 and gave the stock an "outperform" rating in a research report on Thursday, January 29th. The Goldman Sachs Group cut their price objective on shares of Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating for the company in a research report on Wednesday, April 1st. Morgan Stanley reduced their price objective on Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating for the company in a research note on Thursday, April 9th. Weiss Ratings cut Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. Finally, UBS Group set a $160.00 price target on Houlihan Lokey in a report on Thursday.

Insider Transactions at Houlihan Lokey

In other Houlihan Lokey news, General Counsel Christopher M. Crain sold 500 shares of the firm's stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total transaction of $71,700.00. Following the sale, the general counsel owned 500 shares in the company, valued at approximately $71,700. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 22.83% of the company's stock.

Hedge Funds Weigh In On Houlihan Lokey

A number of hedge funds have recently made changes to their positions in the business. Van Berkom & Associates Inc. raised its stake in Houlihan Lokey by 7.6% during the 1st quarter. Van Berkom & Associates Inc. now owns 405,978 shares of the financial services provider's stock valued at $58,307,000 after purchasing an additional 28,600 shares during the period. Dimensional Fund Advisors LP grew its stake in Houlihan Lokey by 15.2% during the first quarter. Dimensional Fund Advisors LP now owns 616,519 shares of the financial services provider's stock valued at $88,540,000 after acquiring an additional 81,182 shares in the last quarter. Swiss National Bank increased its holdings in Houlihan Lokey by 0.6% in the 1st quarter. Swiss National Bank now owns 107,836 shares of the financial services provider's stock valued at $15,487,000 after acquiring an additional 600 shares during the last quarter. Annis Gardner Whiting Capital Advisors LLC boosted its holdings in shares of Houlihan Lokey by 103.4% during the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 236 shares of the financial services provider's stock valued at $34,000 after purchasing an additional 120 shares during the last quarter. Finally, California Public Employees Retirement System boosted its holdings in shares of Houlihan Lokey by 3.3% during the 1st quarter. California Public Employees Retirement System now owns 107,374 shares of the financial services provider's stock valued at $15,421,000 after purchasing an additional 3,431 shares during the last quarter. Institutional investors own 78.07% of the company's stock.

Houlihan Lokey Stock Down 2.6%

NYSE HLI opened at $148.92 on Tuesday. Houlihan Lokey has a 52 week low of $134.41 and a 52 week high of $211.78. The firm has a market capitalization of $10.39 billion, a P/E ratio of 23.94, a PEG ratio of 1.18 and a beta of 0.99. The company has a 50-day moving average price of $149.90 and a 200-day moving average price of $168.26.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.79 by ($0.16). The business had revenue of $635.64 million during the quarter, compared to analysts' expectations of $679.22 million. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The business's quarterly revenue was down 4.6% compared to the same quarter last year. During the same period in the previous year, the business posted $1.96 EPS. As a group, equities research analysts anticipate that Houlihan Lokey will post 8.61 EPS for the current year.

Houlihan Lokey Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be paid a dividend of $0.70 per share. 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 dividend on an annualized basis and a dividend yield of 1.9%. Houlihan Lokey's dividend payout ratio is presently 38.59%.

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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