Houlihan Lokey (NYSE:HLI) Price Target Lowered to $147.00 at UBS Group

Key Points

• UBS lowered Houlihan Lokey’s price target to $147 from $161 while maintaining a “neutral” rating, implying approximately 14% upside from the prior close.
• Shares fell to $128.54 after the company reported quarterly EPS of $1.35, below the $1.64 consensus and down from $2.14 a year earlier. Revenue of $511 million also missed expectations and declined 15.6% year over year.
• Analyst sentiment remains mixed but generally favorable, with five Buy and five Hold ratings and an average price target of $174.62, compared with the stock’s recent trading level.

Houlihan Lokey (NYSE:HLI - Get Free Report) had its price target lowered by research analysts at UBS Group from $161.00 to $147.00 in a research note issued on Thursday,Benzinga reports. The firm presently has a "neutral" rating on the financial services provider's stock. UBS Group's price target suggests a potential upside of 14.36% from the company's previous close.

Several other analysts have also weighed in on HLI. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Houlihan Lokey in a report on Friday, July 17th. Bank of America started coverage on Houlihan Lokey in a report on Friday, July 10th. They issued a "buy" rating and a $164.00 target price on the stock. Morgan Stanley decreased their price target on Houlihan Lokey from $187.00 to $177.00 and set an "overweight" rating on the stock in a research report on Thursday. US Capital Advisors set a $187.00 price target on Houlihan Lokey in a report on Thursday, July 9th. Finally, Wolfe Research upgraded Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Five equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, Houlihan Lokey has an average rating of "Moderate Buy" and an average price target of $174.62.

Houlihan Lokey Stock Performance

Shares of NYSE:HLI traded down $10.54 on Thursday, hitting $128.54. The stock had a trading volume of 3,413,179 shares, compared to its average volume of 691,450. Houlihan Lokey has a twelve month low of $112.83 and a twelve month high of $211.78. The firm's 50 day moving average price is $140.38 and its 200-day moving average price is $152.70. The company has a market capitalization of $8.88 billion, a price-to-earnings ratio of 20.67, a price-to-earnings-growth ratio of 1.23 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing the consensus estimate of $1.64 by ($0.29). Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The firm had revenue of $511.00 million during the quarter, compared to the consensus estimate of $602.38 million. During the same period in the previous year, the company posted $2.14 EPS. The firm's revenue for the quarter was down 15.6% compared to the same quarter last year. As a group, sell-side analysts predict that Houlihan Lokey will post 7.91 EPS for the current year.

Insider Activity at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $150.26, for a total value of $941,378.90. Following the completion of the sale, the chairman owned 6,265 shares of the company's stock, valued at $941,378.90. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. 22.83% of the stock is owned by company insiders.

Institutional Investors Weigh In On Houlihan Lokey

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Resources Management Corp CT ADV boosted its holdings in 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 acquiring an additional 55 shares during the last quarter. Huntington National Bank lifted its position in Houlihan Lokey by 5.5% during 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 during the period. Moneta Group Investment Advisors LLC boosted its stake in shares of Houlihan Lokey by 1.2% in the 4th 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 last quarter. Northwestern Mutual Wealth Management Co. grew its position in shares of Houlihan Lokey by 7.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider's stock worth $196,000 after buying an additional 70 shares during the period. Finally, IFP Advisors Inc grew its position 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 buying an additional 72 shares during the period. 78.07% of the stock is owned by institutional investors and hedge funds.

More Houlihan Lokey News

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

• Positive Sentiment: Morgan Stanley maintained an “overweight” rating and Keefe, Bruyette & Woods maintained an “outperform” rating. Their revised targets of $177 and $153, respectively, still imply meaningful upside from recent trading levels. Morgan Stanley and Keefe, Bruyette & Woods price-target updates
• Positive Sentiment: Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable September 15 to shareholders of record September 1. The dividend provides ongoing income support and represents an indicated yield of approximately 2.3%.
• Neutral Sentiment: UBS lowered its price target to $147 from $161 while retaining a “neutral” rating, signaling reduced expectations but no change in its balanced view of the shares. UBS price-target update
• Negative Sentiment: Fiscal first-quarter EPS was $1.35, missing the $1.64 consensus estimate and falling from $2.14 a year earlier. Revenue of $511 million also missed expectations of $602.38 million and declined 15.6% year over year. The combined earnings and sales shortfalls are the primary reason for the stock’s decrease. Houlihan Lokey misses first-quarter estimates
• Negative Sentiment: Analysts cut their targets despite maintaining favorable or neutral ratings: Morgan Stanley reduced its target to $177 from $187, KBW to $153 from $160, and UBS to $147 from $161. These revisions reflect lower near-term earnings expectations following the weak quarter.

About Houlihan Lokey

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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