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

Key Points

• Houlihan Lokey, Inc. (NYSE:HLI) has received a consensus rating of “Moderate Buy” from five brokerage firms, with an average target price of $206.40.
• The financial services provider reported $2.14 earnings per share, exceeding analysts' expectations, and its quarterly revenue reached $605.35 million, up 17.8% year-over-year.
• A dividend of $0.60 per share has been declared, representing an annualized yield of 1.3%, with the record date set for September 2nd.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) have been given an average rating of "Moderate Buy" by the five research firms that are currently covering the company, Marketbeat reports. Two research analysts have rated the stock with a hold recommendation and three have issued a buy recommendation on the company. The average 1 year price objective among brokerages that have updated their coverage on the stock in the last year is $206.40.

Several analysts have commented on the company. Morgan Stanley restated an "overweight" rating and issued a $192.00 price target (up previously from $159.00) on shares of Houlihan Lokey in a report on Monday, June 23rd. Keefe, Bruyette & Woods upgraded Houlihan Lokey from a "hold" rating to a "moderate buy" rating and lifted their price target for the company from $185.00 to $232.00 in a report on Monday, July 14th. Wall Street Zen cut Houlihan Lokey from a "buy" rating to a "hold" rating in a report on Saturday, August 2nd. Finally, Wells Fargo & Company boosted their target price on Houlihan Lokey from $185.00 to $209.00 and gave the stock an "overweight" rating in a report on Friday, July 11th.

Houlihan Lokey Stock Performance

Houlihan Lokey stock traded down $0.65 during midday trading on Thursday, reaching $196.81. 553,519 shares of the company were exchanged, compared to its average volume of 360,885. The company has a market capitalization of $13.84 billion, a price-to-earnings ratio of 33.13 and a beta of 0.86. The firm's 50-day simple moving average is $192.57 and its 200-day simple moving average is $175.35. Houlihan Lokey has a 1 year low of $137.99 and a 1 year high of $201.63.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings data on Tuesday, July 29th. The financial services provider reported $2.14 EPS for the quarter, topping analysts' consensus estimates of $1.69 by $0.45. The firm had revenue of $605.35 million during the quarter, compared to analysts' expectations of $573.07 million. Houlihan Lokey had a return on equity of 23.75% and a net margin of 16.46%.The firm's quarterly revenue was up 17.8% compared to the same quarter last year. During the same quarter last year, the business posted $1.22 EPS. On average, analysts forecast that Houlihan Lokey will post 5.98 EPS for the current fiscal year.

Houlihan Lokey Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $0.60 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $2.40 dividend on an annualized basis and a dividend yield of 1.2%. Houlihan Lokey's payout ratio is presently 40.40%.

Insider Transactions at Houlihan Lokey

In other news, Chairman Paul Eric Siegert sold 40,000 shares of the business's stock in a transaction dated Wednesday, August 27th. The stock was sold at an average price of $199.95, for a total transaction of $7,998,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Christopher M. Crain sold 500 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $196.22, for a total value of $98,110.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 45,500 shares of company stock worth $9,010,160. 22.83% of the stock is currently owned by company insiders.

Institutional Trading of Houlihan Lokey

A number of institutional investors have recently modified their holdings of HLI. Resources Management Corp CT ADV lifted its position in Houlihan Lokey by 0.9% during the 2nd quarter. Resources Management Corp CT ADV now owns 5,845 shares of the financial services provider's stock worth $1,052,000 after acquiring an additional 55 shares in the last quarter. Legacy Wealth Asset Management LLC lifted its position in Houlihan Lokey by 3.3% during the 2nd quarter. Legacy Wealth Asset Management LLC now owns 1,916 shares of the financial services provider's stock worth $345,000 after acquiring an additional 61 shares in the last quarter. Bogart Wealth LLC lifted its position in Houlihan Lokey by 111.1% during the 1st quarter. Bogart Wealth LLC now owns 152 shares of the financial services provider's stock worth $25,000 after acquiring an additional 80 shares in the last quarter. First Horizon Advisors Inc. lifted its position in Houlihan Lokey by 17.5% during the 1st quarter. First Horizon Advisors Inc. now owns 550 shares of the financial services provider's stock worth $89,000 after acquiring an additional 82 shares in the last quarter. Finally, ProShare Advisors LLC lifted its position in Houlihan Lokey by 3.7% during the 2nd quarter. ProShare Advisors LLC now owns 2,385 shares of the financial services provider's stock worth $429,000 after acquiring an additional 84 shares in the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

About Houlihan Lokey

Houlihan Lokey, Inc, an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.