Houlihan Lokey (NYSE:HLI) Issues Earnings Results, Beats Estimates By $0.45 EPS

Key Points

• Houlihan Lokey reported a quarterly EPS of $2.14, exceeding analysts' expectations of $1.73 by $0.41, with a return on equity of 21.61%.
• The company announced a quarterly dividend of $0.60, with an annualized yield of 1.25%, and a payout ratio of 41.24%.
• Hedge funds increased their holdings, with AQR Capital Management raising their stake by 50% in the first quarter, highlighting strong interest from institutional investors.

Houlihan Lokey (NYSE:HLI - Get Free Report) announced its quarterly earnings data on Tuesday. The financial services provider reported $2.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.69 by $0.45, Zacks reports. Houlihan Lokey had a net margin of 16.73% and a return on equity of 21.61%. The company had revenue of $605.35 million during the quarter, compared to analyst estimates of $573.07 million. During the same period in the previous year, the business earned $1.22 EPS. The firm's revenue for the quarter was up 17.8% on a year-over-year basis.

Houlihan Lokey Stock Performance

HLI stock opened at $191.79 on Wednesday. The company has a market cap of $13.38 billion, a price-to-earnings ratio of 32.95 and a beta of 0.83. The business's 50-day moving average is $181.67 and its two-hundred day moving average is $172.51. Houlihan Lokey has a fifty-two week low of $137.99 and a fifty-two week high of $198.78.

Houlihan Lokey Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 1.25%. Houlihan Lokey's dividend payout ratio (DPR) is presently 41.24%.

Insiders Place Their Bets

In other news, Chairman Irwin Gold sold 5,000 shares of the company's stock in a transaction dated Monday, June 30th. The shares were sold at an average price of $182.81, for a total transaction of $914,050.00. 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 the stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $173.02, for a total transaction of $86,510.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 13,508 shares of company stock valued at $2,431,670. Insiders own 23.68% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Goldman Sachs Group Inc. increased its stake in shares of Houlihan Lokey by 5.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider's stock worth $67,143,000 after purchasing an additional 22,553 shares in the last quarter. Millennium Management LLC bought a new stake in Houlihan Lokey during the first quarter valued at about $18,964,000. Royal Bank of Canada increased its position in Houlihan Lokey by 14.4% in the first quarter. Royal Bank of Canada now owns 49,584 shares of the financial services provider's stock worth $8,008,000 after buying an additional 6,253 shares in the last quarter. Finally, AQR Capital Management LLC raised its stake in shares of Houlihan Lokey by 50.0% in the first quarter. AQR Capital Management LLC now owns 29,654 shares of the financial services provider's stock worth $4,598,000 after buying an additional 9,891 shares during the period. Hedge funds and other institutional investors own 78.07% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have commented on HLI shares. Wall Street Zen raised Houlihan Lokey from a "hold" rating to a "buy" rating in a report on Saturday, July 12th. Morgan Stanley reaffirmed an "overweight" rating and set a $192.00 price objective (up from $159.00) on shares of Houlihan Lokey in a research report on Monday, June 23rd. 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 research report on Friday, July 11th. Finally, Keefe, Bruyette & Woods upgraded shares of Houlihan Lokey from a "hold" rating to a "moderate buy" rating and upped their target price for the company from $185.00 to $232.00 in a research note on Monday, July 14th. Two research analysts have rated the stock with a hold rating and four have given a buy rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $206.40.

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.