Houlihan Lokey (NYSE:HLI) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• Houlihan Lokey's stock rating has been dropped from "buy" to "hold" by Wall Street Zen, reflecting a shift in market perception.
• Despite the downgrade, other analysts have shown confidence, with Keefe, Bruyette & Woods increasing their price target for the stock from $185.00 to $232.00.
• The company's quarterly earnings exceeded expectations, with reported earnings of $2.14 per share, surpassing analyst estimates by $0.45.

Houlihan Lokey (NYSE:HLI - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

A number of other brokerages have also recently weighed in on HLI. Keefe, Bruyette & Woods raised shares of Houlihan Lokey from a "hold" rating to a "moderate buy" rating and boosted their price target for the company from $185.00 to $232.00 in a research report on Monday, July 14th. Morgan Stanley reiterated an "overweight" rating and set a $192.00 target price (up previously from $159.00) on shares of Houlihan Lokey in a research report on Monday, June 23rd. Finally, Wells Fargo & Company upped their target price on Houlihan Lokey from $185.00 to $209.00 and gave the company an "overweight" rating in a research report on Friday, July 11th. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $206.40.

Houlihan Lokey Stock Performance

HLI opened at $189.74 on Friday. The business's 50-day simple moving average is $183.03 and its 200-day simple moving average is $173.10. The company has a market cap of $13.24 billion, a P/E ratio of 31.94 and a beta of 0.86. Houlihan Lokey has a one year low of $137.99 and a one year high of $198.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings data on Tuesday, July 29th. The financial services provider reported $2.14 earnings per share for the quarter, topping analysts' consensus estimates of $1.69 by $0.45. The company had revenue of $605.35 million for the quarter, compared to analysts' expectations of $573.07 million. Houlihan Lokey had a net margin of 16.46% and a return on equity of 23.75%. The firm's revenue for the quarter was up 17.8% on a year-over-year basis. During the same quarter last year, the company earned $1.22 earnings per share. As a group, analysts predict that Houlihan Lokey will post 5.98 earnings per share for the current fiscal year.

Insider Transactions at Houlihan Lokey

In related news, Chairman Irwin Gold sold 5,000 shares of the business's stock in a transaction dated Monday, June 30th. The stock was sold at an average price of $182.81, for a total value of $914,050.00. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, Chairman Scott L. Beiser sold 8,008 shares of the company's stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $178.71, for a total value of $1,431,109.68. The disclosure for this sale can be found here. Over the last quarter, insiders sold 13,508 shares of company stock worth $2,431,670. Company insiders own 23.68% of the company's stock.

Institutional Investors Weigh In On Houlihan Lokey

Several hedge funds have recently modified their holdings of HLI. GAMMA Investing LLC increased its stake in Houlihan Lokey by 39,574.9% in the 1st quarter. GAMMA Investing LLC now owns 686,375 shares of the financial services provider's stock valued at $1,108,500,000 after buying an additional 684,645 shares during the period. Invesco Ltd. increased its stake in shares of Houlihan Lokey by 122.7% during the fourth quarter. Invesco Ltd. now owns 1,041,201 shares of the financial services provider's stock worth $180,815,000 after acquiring an additional 573,745 shares during the period. Congress Asset Management Co. acquired a new position in shares of Houlihan Lokey during the first quarter worth about $81,420,000. Westfield Capital Management Co. LP purchased a new position in Houlihan Lokey during the first quarter worth about $46,236,000. Finally, Handelsbanken Fonder AB lifted its position in Houlihan Lokey by 1,946.8% in the first quarter. Handelsbanken Fonder AB now owns 275,458 shares of the financial services provider's stock valued at $44,486,000 after purchasing an additional 262,000 shares during the period. 78.07% of the stock is owned by institutional investors and hedge funds.

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.

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