Houlihan Lokey (NYSE:HLI) Now Covered by Bank of America

Key Points

• Bank of America initiated coverage on Houlihan Lokey with a buy rating and a $164 price target, implying about 20% upside from the prior close.
• Analyst sentiment remains constructive overall, with six Buy ratings and five Hold ratings; the stock’s average price target stands at $183.67.
• Houlihan Lokey recently reported Q2 earnings below expectations, posting $1.63 EPS versus $1.79 expected and revenue of $635.64 million versus $679.22 million forecast, while shares traded up 1.7% to $136.66.

Stock analysts at Bank of America initiated coverage on shares of Houlihan Lokey (NYSE:HLI - Get Free Report) in a research note issued on Friday. The firm set a "buy" rating and a $164.00 price target on the financial services provider's stock. Bank of America's target price would indicate a potential upside of 20.01% from the stock's previous close.

Several other equities analysts have also issued reports on HLI. Keefe, Bruyette & Woods dropped their price objective on Houlihan Lokey from $172.00 to $160.00 and set an "outperform" rating on the stock in a report on Friday. The Goldman Sachs Group reduced their target price on Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating for the company in a report on Wednesday, April 1st. Weiss Ratings cut Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, April 21st. Zacks Research upgraded Houlihan Lokey from a "strong sell" rating to a "hold" rating in a research note on Thursday, June 11th. Finally, US Capital Advisors set a $187.00 price target on Houlihan Lokey in a research report on Thursday. Six analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $183.67.

Houlihan Lokey Trading Up 1.7%

Shares of NYSE:HLI opened at $136.66 on Friday. The firm has a 50 day simple moving average of $143.59 and a 200-day simple moving average of $156.55. Houlihan Lokey has a twelve month low of $131.30 and a twelve month high of $211.78. The company has a market capitalization of $9.44 billion, a PE ratio of 21.97, a P/E/G ratio of 1.04 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 EPS for the quarter, missing analysts' consensus estimates of $1.79 by ($0.16). Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The company had revenue of $635.64 million during the quarter, compared to analysts' expectations of $679.22 million. During the same period last year, the business earned $1.96 earnings per share. The company's quarterly revenue was down 4.6% on a year-over-year basis. As a group, equities research analysts predict that Houlihan Lokey will post 8.54 EPS for the current fiscal year.

Insider Buying and Selling at Houlihan Lokey

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of Houlihan Lokey stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total value of $941,378.90. Following the transaction, the chairman directly owned 6,265 shares in the company, valued at approximately $941,378.90. This trade represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Company insiders own 22.83% of the company's stock.

Hedge Funds Weigh In On Houlihan Lokey

A number of hedge funds and other institutional investors have recently bought and sold shares of HLI. Resources Management Corp CT ADV boosted its stake in shares of Houlihan Lokey by 0.9% in the second quarter. Resources Management Corp CT ADV now owns 5,845 shares of the financial services provider's stock valued at $1,052,000 after buying an additional 55 shares in the last quarter. Huntington National Bank increased its holdings in shares of Houlihan Lokey by 5.5% in the 4th quarter. Huntington National Bank now owns 1,156 shares of the financial services provider's stock valued at $201,000 after purchasing an additional 60 shares in the last quarter. Moneta Group Investment Advisors LLC lifted its stake in shares of Houlihan Lokey by 1.2% in the fourth quarter. Moneta Group Investment Advisors LLC now owns 5,267 shares of the financial services provider's stock valued at $917,000 after purchasing an additional 61 shares during the period. Northwestern Mutual Wealth Management Co. lifted its stake in shares of Houlihan Lokey by 7.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider's stock valued at $196,000 after purchasing an additional 70 shares during the period. Finally, IFP Advisors Inc boosted its stake in shares of Houlihan Lokey by 4.4% during the 4th quarter. IFP Advisors Inc now owns 1,694 shares of the financial services provider's stock worth $295,000 after acquiring an additional 72 shares in the last quarter. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Houlihan Lokey

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Wolfe Research upgraded Houlihan Lokey from underperform to peer perform, suggesting the stock is no longer viewed as a clear laggard. Houlihan Lokey was upgraded by Wolfe Research from underperform to peer perform
• Positive Sentiment: Houlihan Lokey said it hired a senior executive to strengthen its Equity Capital Solutions business, a move that could support growth in a key advisory area. Houlihan Lokey Bolsters Equity Capital Solutions Capabilities With Senior Hire
• Neutral Sentiment: Houlihan Lokey announced it will release fiscal 2027 first-quarter results on July 29, which sets up the next major catalyst but does not change fundamentals by itself. Houlihan Lokey Announces Release Date for First Quarter Results for Fiscal Year 2027
• Neutral Sentiment: Morgan Stanley lowered its price target to $187 from $193, but kept an overweight rating, indicating continued confidence despite a more conservative valuation view. Houlihan Lokey had its price target lowered by Morgan Stanley from 193 to 187
• Neutral Sentiment: Keefe, Bruyette & Woods also cut its target to $160 from $172 while reiterating an outperform rating, implying analysts still see upside even after trimming expectations. Houlihan Lokey had its price target lowered by Keefe, Bruyette & Woods from 172 to 160

Houlihan Lokey Company Profile

Houlihan Lokey, Inc is a global investment bank and financial services firm founded in 1972 and headquartered in Los Angeles, California. The company specializes in advisory services across a broad range of transaction types and financial matters. Since its founding, Houlihan Lokey has grown to serve corporations, financial sponsors, and government entities worldwide, providing expertise in complex and high-stakes engagements.

The firm's core service offerings include mergers and acquisitions advisory, capital markets advisory, financial restructuring and distressed M&A, and valuation and fairness opinions.

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