Houlihan Lokey (NYSE:HLI) Reaches New 52-Week Low - Here's Why

Key Points

• Houlihan Lokey shares hit a new 52-week low, falling to as low as $133.40 after closing at $138.55 the previous session.
• The stock has come under pressure after the company missed Wall Street’s earnings and revenue estimates in its latest quarterly report, with EPS of $1.63 versus $1.79 expected and revenue of $635.64 million versus $679.22 million expected.
• Despite the weak stock performance, analysts still hold a Moderate Buy consensus on HLI, while the company recently raised its quarterly dividend to $0.70 per share from $0.60.

Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report)'s share price reached a new 52-week low on Monday . The stock traded as low as $133.40 and last traded at $132.9050, with a volume of 63777 shares changing hands. The stock had previously closed at $138.55.

Analyst Ratings Changes

A number of research firms recently commented on HLI. UBS Group set a $160.00 target price on Houlihan Lokey in a research note on Thursday, May 7th. Weiss Ratings cut Houlihan Lokey from a "hold (c+)" rating to a "hold (c)" rating in a report on Tuesday, April 21st. The Goldman Sachs Group reduced their price objective on Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating on the stock in a research report on Wednesday, April 1st. Zacks Research raised Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. Finally, Morgan Stanley dropped their target price on Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating for the company in a research report on Thursday, April 9th. Five analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $191.29.

Houlihan Lokey Stock Performance

The company has a market cap of $9.15 billion, a P/E ratio of 21.34, a price-to-earnings-growth ratio of 1.08 and a beta of 0.95. The business has a 50 day moving average price of $147.62 and a two-hundred day moving average price of $159.10.

Houlihan Lokey (NYSE:HLI - Get Free Report) last announced its quarterly 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). The company had revenue of $635.64 million during 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%.Houlihan Lokey's revenue for the quarter was down 4.6% on a year-over-year basis. During the same period last year, the firm earned $1.96 earnings per share. As a group, research analysts expect that Houlihan Lokey, Inc. will post 8.54 EPS for the current year.

Houlihan Lokey Increases Dividend

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

Insider Buying and Selling at Houlihan Lokey

In other news, Chairman Scott L. Beiser sold 6,265 shares of the company's stock in a transaction dated Thursday, May 21st. The shares were sold at an average price of $150.26, for a total transaction of $941,378.90. Following the completion of the transaction, the chairman directly owned 6,265 shares of the company's stock, valued at approximately $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 SEC, which is accessible through this hyperlink. Also, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $143.40, for a total transaction of $71,700.00. Following the sale, the general counsel owned 500 shares of the company's stock, valued at approximately $71,700. This represents a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 22.83% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Pacer Advisors Inc. raised its position in Houlihan Lokey by 1.6% during the 1st quarter. Pacer Advisors Inc. now owns 8,198 shares of the financial services provider's stock valued at $1,177,000 after purchasing an additional 133 shares during the last quarter. Henshaw Capital LLC purchased a new position in shares of Houlihan Lokey during the first quarter valued at approximately $1,144,000. Alpine Woods Capital Investors LLC increased its stake in shares of Houlihan Lokey by 224.8% during the first quarter. Alpine Woods Capital Investors LLC now owns 11,975 shares of the financial services provider's stock valued at $1,720,000 after buying an additional 8,288 shares during the period. Segall Bryant & Hamill LLC raised its holdings in shares of Houlihan Lokey by 36.7% during the first quarter. Segall Bryant & Hamill LLC now owns 120,258 shares of the financial services provider's stock valued at $17,271,000 after acquiring an additional 32,276 shares in the last quarter. Finally, Edgestream Partners L.P. raised its holdings in shares of Houlihan Lokey by 510.7% during the first quarter. Edgestream Partners L.P. now owns 55,338 shares of the financial services provider's stock valued at $7,948,000 after acquiring an additional 46,277 shares in the last quarter. Hedge funds and other institutional investors own 78.07% of the company's stock.

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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