Keefe, Bruyette & Woods Has Lowered Expectations for Houlihan Lokey (NYSE:HLI) Stock Price

Key Points

• Keefe, Bruyette & Woods lowered Houlihan Lokey’s price target to $153 from $160 while maintaining an “outperform” rating, implying about 10.2% upside from the current price. Analysts overall maintain a “Moderate Buy” consensus with an average target of $179.62.
• Shares have fallen 4.6% and opened at $138.83, near the lower end of their 52-week range. The stock trades at a P/E ratio of 22.32, with institutional investors owning approximately 78% of outstanding shares.
• Quarterly results missed expectations: EPS was $1.35 versus the $1.64 consensus, while revenue of $511 million was 15.6% below the prior-year period and substantially below the $602.38 million estimate.

Houlihan Lokey (NYSE:HLI - Get Free Report) had its target price decreased by analysts at Keefe, Bruyette & Woods from $160.00 to $153.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "outperform" rating on the financial services provider's stock. Keefe, Bruyette & Woods' price target indicates a potential upside of 10.21% from the company's current price.

A number of other research analysts have also weighed in on HLI. Zacks Research upgraded Houlihan Lokey from a "strong sell" rating to a "hold" rating in a report on Thursday, June 11th. Morgan Stanley lowered their price target on Houlihan Lokey from $193.00 to $187.00 and set an "overweight" rating for the company in a research report on Thursday, July 9th. Wolfe Research upgraded Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a research note on Thursday, July 9th. Bank of America started coverage on shares of Houlihan Lokey in a report on Friday, July 10th. They set a "buy" rating and a $164.00 price objective on the stock. Finally, UBS Group upped their target price on shares of Houlihan Lokey from $160.00 to $161.00 and gave the stock a "neutral" rating in a research note on Wednesday, July 8th. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $179.62.

Houlihan Lokey Stock Down 4.6%

NYSE HLI opened at $138.83 on Thursday. Houlihan Lokey has a 52 week low of $130.72 and a 52 week high of $211.78. The business has a 50 day moving average price of $140.38 and a 200-day moving average price of $152.70. The company has a market cap of $9.59 billion, a price-to-earnings ratio of 22.32, a P/E/G ratio of 1.23 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.64 by ($0.29). Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The business had revenue of $511.00 million during the quarter, compared to analyst estimates of $602.38 million. During the same period in the previous year, the business posted $2.14 EPS. The business's revenue for the quarter was down 15.6% compared to the same quarter last year. On average, equities research analysts anticipate that Houlihan Lokey will post 7.91 earnings per share for the current year.

Insider Buying and Selling

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of the business's stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total value of $941,378.90. Following the transaction, the chairman owned 6,265 shares of the company's stock, valued at approximately $941,378.90. The trade was a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 22.83% of the company's stock.

Institutional Investors Weigh In On Houlihan Lokey

Hedge funds have recently made changes to their positions in the business. Flagship Harbor Advisors LLC bought a new position in Houlihan Lokey during the fourth quarter valued at about $26,000. Oakworth Capital Inc. bought a new stake in Houlihan Lokey in the fourth quarter worth about $29,000. Core Wealth Advisors LLC bought a new stake in Houlihan Lokey in the fourth quarter worth about $32,000. Eurizon Capital SGR S.p.A. purchased a new position in Houlihan Lokey in the fourth quarter valued at about $33,000. Finally, Annis Gardner Whiting Capital Advisors LLC boosted its stake in Houlihan Lokey by 103.4% in the first quarter. Annis Gardner Whiting Capital Advisors LLC now owns 236 shares of the financial services provider's stock valued at $34,000 after acquiring an additional 120 shares during the last quarter. 78.07% of the stock is currently owned by institutional investors.

Key Houlihan Lokey News

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Quarterly dividend maintained: Houlihan Lokey declared a $0.70-per-share dividend payable September 15 to shareholders of record September 1. The payment implies an annualized dividend of approximately $2.80 per share and a yield of about 2.0%, supporting income-focused investors. Houlihan Lokey dividend announcement
• Neutral Sentiment: Management commentary available: Investors are reviewing the fiscal first-quarter earnings call for details on transaction activity, advisory demand and the outlook for the remainder of fiscal 2027. Houlihan Lokey Q1 2027 earnings call transcript
• Negative Sentiment: Significant earnings miss: Houlihan Lokey reported fiscal Q1 EPS of $1.35, below the $1.64 analyst consensus and down sharply from $2.14 in the prior-year quarter. Houlihan Lokey misses Q1 earnings and revenue estimates
• Negative Sentiment: Revenue weakness: Quarterly revenue was $511.0 million, materially below the $602.38 million estimate and 15.6% lower year over year. The weaker-than-expected top line suggests softer advisory activity and raises concerns about near-term earnings momentum. Houlihan Lokey fiscal Q1 earnings report

About Houlihan Lokey

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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