Houlihan Lokey (NYSE:HLI) Reaches New 52-Week High - Time to 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%.

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

Analyst Ratings Changes

A number of research firms recently weighed in on HLI. Wells Fargo & Company upped their price target on Houlihan Lokey from $185.00 to $209.00 and gave the stock an "overweight" rating in a report on Friday, July 11th. Wall Street Zen lowered Houlihan Lokey from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Keefe, Bruyette & Woods upgraded Houlihan Lokey from a "hold" rating to a "moderate buy" rating and upped their price objective for the stock from $185.00 to $232.00 in a report on Monday, July 14th. 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 report on Monday, September 8th. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $210.60.

Houlihan Lokey Trading Down 0.2%

The firm's fifty day moving average price is $194.80 and its 200-day moving average price is $176.62. The company has a market cap of $14.25 billion, a P/E ratio of 34.12 and a beta of 0.86.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings results on Tuesday, July 29th. The financial services provider reported $2.14 EPS for the quarter, beating analysts' consensus estimates 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 analyst estimates of $573.07 million. During the same period in the previous year, the business earned $1.22 earnings per share. The company's revenue for the quarter was up 17.8% compared to the same quarter last year. As a group, research analysts forecast that Houlihan Lokey, Inc. will post 5.98 earnings per share for the current fiscal year.

Houlihan Lokey Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were issued a $0.60 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $2.40 annualized dividend and a yield of 1.2%. Houlihan Lokey's dividend payout ratio (DPR) is 40.40%.

Insider Activity at Houlihan Lokey

In related news, Chairman Paul Eric Siegert sold 40,000 shares of the firm's stock in a transaction on Wednesday, August 27th. The shares were sold at an average price of $199.95, for a total value of $7,998,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction on Tuesday, September 2nd. The shares were 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 90 days, insiders sold 45,500 shares of company stock valued at $9,010,160. Corporate insiders own 22.83% of the company's stock.

Institutional Trading of Houlihan Lokey

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Osaic Holdings Inc. raised its stake in Houlihan Lokey by 14.5% in the 2nd quarter. Osaic Holdings Inc. now owns 10,258 shares of the financial services provider's stock worth $1,838,000 after purchasing an additional 1,296 shares in the last quarter. American Trust acquired a new stake in Houlihan Lokey during the 2nd quarter worth approximately $346,000. B. Riley Wealth Advisors Inc. acquired a new stake in Houlihan Lokey during the 2nd quarter worth approximately $608,000. Advisory Services Network LLC lifted its position in shares of Houlihan Lokey by 7.5% in the 2nd quarter. Advisory Services Network LLC now owns 7,138 shares of the financial services provider's stock worth $1,361,000 after purchasing an additional 496 shares during the period. Finally, State of Wyoming lifted its position in shares of Houlihan Lokey by 43.5% in the 2nd quarter. State of Wyoming now owns 3,987 shares of the financial services provider's stock worth $717,000 after purchasing an additional 1,209 shares during the period. Institutional investors and hedge funds 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.