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

Key Points

• Houlihan Lokey's stock reached a new 52-week high of $208.76, closing at $206.97, with a trading volume of 32,010 shares.
• Analysts have given Houlihan Lokey a "Moderate Buy" consensus rating, with price targets ranging from $209.00 to $232.00.
• The company reported earnings of $2.14 per share for the last quarter, significantly beating expectations and showing a 17.8% year-over-year revenue increase to $605.35 million.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) hit a new 52-week high during trading on Thursday . The stock traded as high as $208.76 and last traded at $206.97, with a volume of 32010 shares trading hands. The stock had previously closed at $204.41.

Analyst Ratings Changes

HLI has been the subject of several recent analyst reports. 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 report on Friday, July 11th. Morgan Stanley raised their price target on shares of Houlihan Lokey from $192.00 to $213.00 and gave the company an "overweight" rating in a research report on Monday, September 8th. Wall Street Zen cut Houlihan Lokey from a "buy" rating to a "hold" rating in a research note on Saturday, August 2nd. Finally, Keefe, Bruyette & Woods upgraded shares of Houlihan Lokey from a "hold" rating to a "moderate buy" rating and increased their price objective for the company from $185.00 to $232.00 in a research report on Monday, July 14th. Three research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Houlihan Lokey currently has a consensus rating of "Moderate Buy" and a consensus target price of $210.60.

Houlihan Lokey Price Performance

The firm's 50-day moving average price is $196.23 and its 200-day moving average price is $177.70. The stock has a market cap of $14.69 billion, a P/E ratio of 35.16 and a beta of 0.86.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its earnings results 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 firm had revenue of $605.35 million during 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 for the quarter was up 17.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.22 earnings per share. Sell-side analysts expect that Houlihan Lokey, Inc. will post 5.98 earnings per share for the current year.

Houlihan Lokey Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd were issued a $0.60 dividend. This represents a $2.40 annualized dividend and a dividend yield of 1.1%. The ex-dividend date of this dividend was Tuesday, September 2nd. Houlihan Lokey's payout ratio is 40.40%.

Insider Buying and Selling

In other Houlihan Lokey news, Chairman Irwin Gold sold 6,811 shares of Houlihan Lokey stock in a transaction that occurred on Tuesday, September 16th. The stock was sold at an average price of $202.75, for a total value of $1,380,930.25. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, General Counsel Christopher M. Crain sold 500 shares of the company's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $196.22, for a total value of $98,110.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 52,311 shares of company stock worth $10,391,090. Corporate insiders own 22.83% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Elevation Point Wealth Partners LLC purchased a new stake in Houlihan Lokey during the first quarter valued at $619,000. New York State Teachers Retirement System grew its stake in shares of Houlihan Lokey by 1.1% in the 1st quarter. New York State Teachers Retirement System now owns 17,926 shares of the financial services provider's stock worth $2,895,000 after buying an additional 200 shares in the last quarter. OneDigital Investment Advisors LLC bought a new stake in shares of Houlihan Lokey in the 1st quarter worth about $210,000. Amundi increased its holdings in shares of Houlihan Lokey by 404.0% in the 1st quarter. Amundi now owns 63,433 shares of the financial services provider's stock worth $9,725,000 after buying an additional 50,847 shares during the last quarter. Finally, QRG Capital Management Inc. raised its position in shares of Houlihan Lokey by 9.7% during the 1st quarter. QRG Capital Management Inc. now owns 4,987 shares of the financial services provider's stock valued at $805,000 after buying an additional 439 shares in the last quarter. 78.07% of the stock is owned by hedge funds and other institutional investors.

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.