Houlihan Lokey (NYSE:HLI) Cut to "Hold" at Zacks Research

Key Points

• Houlihan Lokey has been downgraded from a "strong-buy" to a "hold" rating by Zacks Research, reflecting a shift in market sentiment.
• Despite the downgrade from Zacks, other firms like Wells Fargo and Morgan Stanley have lifted their price targets, with the consensus price target now at $210.60.
• In recent insider trading activity, Chairman Irwin Gold sold 6,811 shares of the company, indicating potential shifts in insider confidence.

Houlihan Lokey (NYSE:HLI - Get Free Report) was downgraded by equities researchers at Zacks Research from a "strong-buy" rating to a "hold" rating in a report released on Monday,Zacks.com reports.

Several other research firms have also recently issued reports on HLI. Wells Fargo & Company raised their price objective on shares of Houlihan Lokey from $185.00 to $209.00 and gave the stock an "overweight" rating in a research report on Friday, July 11th. Morgan Stanley lifted their price target on shares of Houlihan Lokey from $192.00 to $213.00 and gave the company an "overweight" rating in a research report on Monday, September 8th. Keefe, Bruyette & Woods upgraded shares of 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 research report on Monday, July 14th. Finally, Wall Street Zen cut shares of Houlihan Lokey from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. Three equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $210.60.

Houlihan Lokey Stock Down 0.3%

HLI opened at $205.56 on Monday. The company has a market cap of $14.45 billion, a price-to-earnings ratio of 34.61 and a beta of 0.86. Houlihan Lokey has a 52-week low of $137.99 and a 52-week high of $211.78. The firm's fifty day simple moving average is $197.87 and its two-hundred day simple moving average is $180.11.

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

Insider Activity

In other news, Chairman Irwin Gold sold 6,811 shares of the firm's stock in a transaction that occurred on Tuesday, September 16th. The shares were sold at an average price of $202.75, for a total value of $1,380,930.25. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Christopher M. Crain sold 500 shares of Houlihan Lokey stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $196.22, for a total transaction of $98,110.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 47,311 shares of company stock valued at $9,477,040. 22.83% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Osaic Holdings Inc. lifted its stake in Houlihan Lokey by 14.5% in the second quarter. Osaic Holdings Inc. now owns 10,258 shares of the financial services provider's stock worth $1,838,000 after acquiring an additional 1,296 shares during the last quarter. American Trust purchased a new position in Houlihan Lokey in the second quarter worth approximately $346,000. B. Riley Wealth Advisors Inc. purchased a new position in Houlihan Lokey in the second quarter worth approximately $608,000. Advisory Services Network LLC lifted its stake in Houlihan Lokey by 7.5% in the second quarter. Advisory Services Network LLC now owns 7,138 shares of the financial services provider's stock worth $1,361,000 after acquiring an additional 496 shares during the last quarter. Finally, State of Wyoming lifted its stake in Houlihan Lokey by 43.5% in the second quarter. State of Wyoming now owns 3,987 shares of the financial services provider's stock worth $717,000 after acquiring an additional 1,209 shares during the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

Houlihan Lokey Company Profile

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.

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