Houlihan Lokey (NYSE:HLI) Hits New 1-Year High - Still a Buy?

Key Points

• Shares of Houlihan Lokey, Inc. reached a new 52-week high, trading at $204.54, with analysts giving a consensus rating of "Moderate Buy" and a target price of $210.60.
• The company reported strong quarterly earnings, surpassing estimates with an EPS of $2.14 and year-over-year revenue growth of 17.8%.
• Houlihan Lokey announced a quarterly dividend of $0.60 per share, with a dividend yield of 1.2% and a payout ratio of 40.40%.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) reached a new 52-week high during mid-day trading on Thursday . The company traded as high as $203.47 and last traded at $204.54, with a volume of 17680 shares changing hands. The stock had previously closed at $200.94.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on HLI. Keefe, Bruyette & Woods raised Houlihan Lokey from a "hold" rating to a "moderate buy" rating and increased their price target for the company from $185.00 to $232.00 in a research report on Monday, July 14th. Wall Street Zen lowered Houlihan Lokey from a "buy" rating to a "hold" rating in a research report on Saturday, August 2nd. Wells Fargo & Company increased their price target on Houlihan Lokey from $185.00 to $209.00 and gave the company an "overweight" rating in a research report on Friday, July 11th. Finally, Morgan Stanley increased their price target on Houlihan Lokey from $192.00 to $213.00 and gave the company an "overweight" rating in a research report on Monday. Three analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $210.60.

Houlihan Lokey Stock Performance

The firm has a market cap of $14.46 billion, a price-to-earnings ratio of 34.67 and a beta of 0.86. The firm has a 50-day moving average price of $193.60 and a two-hundred day moving average price of $175.81.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its 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 return on equity of 23.75% and a net margin of 16.46%.The business had revenue of $605.35 million for the quarter, compared to analyst estimates of $573.07 million. During the same quarter last year, the company earned $1.22 EPS. The business's quarterly revenue was up 17.8% on a year-over-year basis. Research analysts anticipate that Houlihan Lokey, Inc. will post 5.98 earnings per share for the current year.

Houlihan Lokey Announces Dividend

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

Insider Transactions at Houlihan Lokey

In other news, Chairman Paul Eric Siegert sold 40,000 shares of the firm'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 document filed with the SEC, which is accessible through the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of the firm'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 90 days, insiders have sold 45,500 shares of company stock valued at $9,010,160. Corporate insiders own 22.83% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Elevation Point Wealth Partners LLC acquired a new position in Houlihan Lokey during the first quarter worth approximately $619,000. New York State Teachers Retirement System increased its position in Houlihan Lokey by 1.1% during the first quarter. New York State Teachers Retirement System now owns 17,926 shares of the financial services provider's stock worth $2,895,000 after buying an additional 200 shares during the period. OneDigital Investment Advisors LLC acquired a new position in Houlihan Lokey during the first quarter worth approximately $210,000. QRG Capital Management Inc. increased its position in Houlihan Lokey by 9.7% during the first quarter. QRG Capital Management Inc. now owns 4,987 shares of the financial services provider's stock worth $805,000 after buying an additional 439 shares during the period. Finally, PNC Financial Services Group Inc. increased its position in Houlihan Lokey by 31.4% during the first quarter. PNC Financial Services Group Inc. now owns 16,955 shares of the financial services provider's stock worth $2,738,000 after buying an additional 4,056 shares during the period. Institutional investors and hedge funds 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.

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