Hamilton Lane (NASDAQ:HLNE) Stock Breaks Above 50 Day Moving Average Following Analyst Downgrade

Key Points

• Hamilton Lane shares rose above their 50-day moving average, reaching $95.15 and last trading at $94.99. Wells Fargo raised its price target from $103 to $114 and maintained an overweight rating, while other analysts’ target revisions were mixed.
• Fiscal Q2 adjusted earnings of $1.98 per share beat estimates of $1.65, and revenue grew 7.1% year over year; however, revenue of $204.43 million fell short of expectations of about $215 million.
• The company declared a quarterly dividend of $0.60 per share, or $2.40 annualized, representing a 2.5% yield.

Shares of Hamilton Lane Inc. (NASDAQ:HLNE - Get Free Report) passed above its fifty day moving average during trading on Wednesday after Wells Fargo & Company raised their price target on the stock from $103.00 to $114.00. The stock has a fifty day moving average of $90.06 and traded as high as $95.15. Wells Fargo & Company currently has an overweight rating on the stock. Hamilton Lane shares last traded at $94.99, with a volume of 962,136 shares trading hands.

Other equities research analysts have also recently issued research reports about the stock. UBS Group dropped their target price on shares of Hamilton Lane from $131.00 to $115.00 and set a "buy" rating for the company in a research report on Tuesday, October 13th. Weiss Ratings upgraded shares of Hamilton Lane from a "hold (c-)" rating to a "hold (c)" rating in a research report on Monday, August 31st. BMO Capital Markets decreased their price objective on shares of Hamilton Lane from $116.00 to $95.00 and set an "outperform" rating on the stock in a research note on Tuesday, October 27th. The Goldman Sachs Group reaffirmed a "buy" rating and set a $117.00 price objective on shares of Hamilton Lane in a report on Friday, October 2nd. Finally, Keefe, Bruyette & Woods lifted their target price on shares of Hamilton Lane from $116.00 to $120.00 and gave the company an "outperform" rating in a research note on Wednesday. Seven research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, Hamilton Lane has an average rating of "Moderate Buy" and an average price target of $125.50.

Hamilton Lane News Roundup

Here are the key news stories impacting Hamilton Lane this week:

• Positive Sentiment: Fiscal Q2 adjusted earnings were $1.98 per share, above consensus estimates of $1.65, while revenue grew 7.1% year over year. Fee-related earnings rose 34%, and the fee margin reached 51%. Hamilton Lane fiscal Q2 results
• Positive Sentiment: Assets under management grew 7% to $1.1 trillion, and evergreen-platform AUM rose 42% to nearly $21 billion, pointing to ongoing expansion in a key part of the business. Three takeaways for long-term investors
• Positive Sentiment: Hamilton Lane raised its quarterly dividend 11% to $0.60 per share, equivalent to $2.40 annualized, marking its ninth consecutive annual increase. It also announced a FactSet partnership to provide integrated private-markets analytics. Dividend target, partnership and evergreen growth
• Neutral Sentiment: Analyst target changes were split: Wells Fargo raised its target to $114 and KBW to $120, while JPMorgan cut its target to $144 and Oppenheimer trimmed its target to $170. All retained favorable ratings. Oppenheimer target update
• Negative Sentiment: Revenue of $204.43 million missed analyst expectations of about $215 million. Commentary also flagged uneven growth and raised questions about dividend resilience if private markets weaken. Revenue below estimates

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in HLNE. Principal Financial Group Inc. grew its holdings in Hamilton Lane by 1.7% during the first quarter. Principal Financial Group Inc. now owns 1,103,913 shares of the company's stock valued at $109,725,000 after purchasing an additional 18,063 shares during the period. Janus Henderson Group PLC increased its stake in Hamilton Lane by 12.9% in the first quarter. Janus Henderson Group PLC now owns 905,660 shares of the company's stock valued at $90,045,000 after purchasing an additional 103,663 shares in the last quarter. Van Berkom & Associates Inc. raised its holdings in Hamilton Lane by 9.7% in the first quarter. Van Berkom & Associates Inc. now owns 833,307 shares of the company's stock worth $82,831,000 after purchasing an additional 73,679 shares during the period. Dimensional Fund Advisors LP raised its holdings in Hamilton Lane by 1.8% in the first quarter. Dimensional Fund Advisors LP now owns 678,579 shares of the company's stock worth $67,450,000 after purchasing an additional 12,115 shares during the period. Finally, Copeland Capital Management LLC raised its holdings in Hamilton Lane by 52.5% in the third quarter. Copeland Capital Management LLC now owns 741,678 shares of the company's stock worth $64,422,000 after purchasing an additional 255,238 shares during the period. 97.40% of the stock is currently owned by institutional investors and hedge funds.

Hamilton Lane Trading Up 7.2%

The company's fifty day simple moving average is $90.06 and its two-hundred day simple moving average is $97.21. The company has a market capitalization of $5.28 billion, a price-to-earnings ratio of 14.09 and a beta of 1.16. The company has a quick ratio of 3.49, a current ratio of 3.37 and a debt-to-equity ratio of 0.14.

Hamilton Lane (NASDAQ:HLNE - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $1.98 EPS for the quarter, beating analysts' consensus estimates of $1.65 by $0.33. The business had revenue of $204.43 million during the quarter, compared to analysts' expectations of $215.23 million. Hamilton Lane had a net margin of 32.40% and a return on equity of 23.47%. The firm's quarterly revenue was up 7.1% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.54 EPS. Research analysts forecast that Hamilton Lane Inc. will post 7.47 earnings per share for the current fiscal year.

Hamilton Lane Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 7th. Stockholders of record on Monday, December 21st will be given a dividend of $0.60 per share. The ex-dividend date of this dividend is Monday, December 21st. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.5%. Hamilton Lane's dividend payout ratio (DPR) is currently 35.61%.

About Hamilton Lane

Hamilton Lane Incorporated NASDAQ: HLNE is a global investment management firm specializing in private markets. The company provides investment solutions and advisory services focused on alternative assets, including private equity, private credit, venture capital, growth equity, infrastructure and real assets.

Hamilton Lane serves institutional investors, family offices, financial advisors and high-net-worth individuals. Its offerings include separately managed accounts, customized portfolios, commingled funds, evergreen vehicles and secondary-market strategies.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.