Houlihan Lokey (NYSE:HLI) Reaches New 12-Month Low After Analyst Downgrade

Key Points

• Houlihan Lokey shares hit a new 52-week low after Keefe, Bruyette & Woods cut its price target on the stock from $172 to $160, despite keeping an outperform rating.
• Recent analyst sentiment remains mixed: the stock now has a Moderate Buy consensus with an average price target of $180.50, while several firms have trimmed targets or shifted ratings.
• The company recently missed earnings and revenue estimates for its latest quarter, but it also raised its quarterly dividend to $0.70 per share from $0.60.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) reached a new 52-week low during trading on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $172.00 to $160.00. Keefe, Bruyette & Woods currently has an outperform rating on the stock. Houlihan Lokey traded as low as $130.83 and last traded at $131.4540, with a volume of 221576 shares trading hands. The stock had previously closed at $135.33.

Several other brokerages also recently issued reports on HLI. Zacks Research upgraded shares of Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. The Goldman Sachs Group lowered their price objective on Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. US Capital Advisors set a $187.00 price target on shares of Houlihan Lokey in a research note on Thursday. Weiss Ratings downgraded Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. Finally, Morgan Stanley reduced their price target on Houlihan Lokey from $193.00 to $187.00 and set an "overweight" rating on the stock in a research report on Thursday. Five analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Houlihan Lokey has an average rating of "Moderate Buy" and an average price target of $180.50.

Insider Transactions at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $150.26, for a total transaction of $941,378.90. Following the transaction, the chairman directly owned 6,265 shares of the company's stock, valued at $941,378.90. This represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 22.83% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of HLI. Flagship Harbor Advisors LLC purchased a new stake in shares of Houlihan Lokey in the fourth quarter worth approximately $26,000. Oakworth Capital Inc. bought a new position in Houlihan Lokey during the 4th quarter valued at $29,000. Core Wealth Advisors LLC purchased a new position in Houlihan Lokey during the 4th quarter worth $32,000. Eurizon Capital SGR S.p.A. purchased a new position in Houlihan Lokey during the 4th quarter worth $33,000. Finally, Annis Gardner Whiting Capital Advisors LLC grew its stake in shares of Houlihan Lokey by 103.4% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 236 shares of the financial services provider's stock worth $34,000 after acquiring an additional 120 shares in the last quarter. Institutional investors and hedge funds own 78.07% of the company's stock.

Houlihan Lokey Price Performance

The company's fifty day moving average price is $143.18 and its 200 day moving average price is $156.25. The company has a market cap of $9.08 billion, a PE ratio of 21.14, a P/E/G ratio of 1.08 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share for the quarter, missing the consensus estimate of $1.79 by ($0.16). The firm had revenue of $635.64 million for the quarter, compared to analysts' expectations of $679.22 million. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The firm's revenue for the quarter was down 4.6% compared to the same quarter last year. During the same quarter last year, the firm posted $1.96 earnings per share. On average, analysts forecast that Houlihan Lokey, Inc. will post 8.27 EPS for the current year.

Houlihan Lokey Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a dividend of $0.70 per share. The ex-dividend date of this dividend was Monday, June 1st. This is a positive change from Houlihan Lokey's previous quarterly dividend of $0.60. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.1%. Houlihan Lokey's dividend payout ratio (DPR) is 45.02%.

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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