Wall Street Zen Downgrades Houlihan Lokey (NYSE:HLI) to Hold

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 equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research note issued to investors on Saturday.

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

Houlihan Lokey Stock Performance

Shares of NYSE:HLI traded up $0.63 during mid-day trading on Friday, reaching $193.02. 103,129 shares of the company's stock were exchanged, compared to its average volume of 405,211. The firm has a market capitalization of $13.47 billion, a price-to-earnings ratio of 32.50 and a beta of 0.86. The business's fifty day moving average price is $183.74 and its 200-day moving average price is $173.26. Houlihan Lokey has a twelve month low of $137.99 and a twelve month high of $198.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its quarterly earnings results on Tuesday, July 29th. The financial services provider reported $2.14 EPS 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 analyst estimates of $573.07 million. Houlihan Lokey had a net margin of 16.46% and a return on equity of 23.75%. Houlihan Lokey's revenue was up 17.8% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.22 earnings per share. Analysts predict that Houlihan Lokey will post 5.98 EPS for the current fiscal year.

Insider Buying and Selling

In other Houlihan Lokey news, General Counsel Christopher M. Crain sold 500 shares of the business's stock in a transaction dated Monday, June 2nd. The shares were sold at an average price of $173.02, for a total value of $86,510.00. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Chairman Scott L. Beiser sold 8,008 shares of the business's stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $178.71, for a total transaction of $1,431,109.68. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 13,508 shares of company stock worth $2,431,670. 22.83% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Bogart Wealth LLC increased its holdings in Houlihan Lokey by 111.1% during the 1st quarter. Bogart Wealth LLC now owns 152 shares of the financial services provider's stock worth $25,000 after acquiring an additional 80 shares during the period. Motco bought a new stake in Houlihan Lokey during the 1st quarter worth approximately $29,000. Trust Co. of Toledo NA OH bought a new stake in Houlihan Lokey during the 2nd quarter worth approximately $34,000. Brooklyn Investment Group bought a new stake in Houlihan Lokey during the 1st quarter worth approximately $33,000. Finally, TCTC Holdings LLC increased its holdings in shares of Houlihan Lokey by 103.5% in the 1st quarter. TCTC Holdings LLC now owns 232 shares of the financial services provider's stock worth $37,000 after buying an additional 118 shares during the last quarter. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

About Houlihan Lokey

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.