Houlihan Lokey (NYSE:HLI) Share Price Crosses Above 200-Day Moving Average - Here's Why

Key Points

• Houlihan Lokey shares crossed above their 200-day moving average, trading as high as $146.94 versus the $144.76 average, with the stock up 6.1%.
• Analyst sentiment is generally positive: seven analysts rate the stock a Buy and five a Hold, producing a “Moderate Buy” consensus and an average price target of $160.44. Citizens JMP set a $175 target, while Bank of America initiated coverage with a Buy rating and a $164 target.
• The company beat quarterly earnings and revenue expectations, reporting $1.85 in EPS and $692 million in revenue. Houlihan Lokey also declared a quarterly dividend of $0.70 per share, equivalent to a 1.9% annual yield.

Shares of Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) passed above its two hundred day moving average during trading on Monday. The stock has a two hundred day moving average of $144.76 and traded as high as $146.94. Houlihan Lokey shares last traded at $146.3670, with a volume of 1,093,641 shares traded.

Analysts Set New Price Targets

HLI has been the topic of a number of research analyst reports. Wall Street Zen upgraded shares of Houlihan Lokey from a "sell" rating to a "hold" rating in a research note on Saturday. Citizens Jmp upgraded shares of Houlihan Lokey from a "market perform" rating to an "outperform" rating and set a $175.00 price target for the company in a research note on Friday, October 9th. Citigroup upgraded shares of Houlihan Lokey to an "outperform" rating in a research note on Friday, October 9th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Houlihan Lokey in a report on Thursday, October 15th. Finally, Bank of America began coverage on Houlihan Lokey in a research note on Friday, July 10th. They issued a "buy" rating and a $164.00 price objective on the stock. Seven equities research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, Houlihan Lokey has an average rating of "Moderate Buy" and an average target price of $160.44.

Houlihan Lokey Trading Up 6.1%

The firm has a fifty day moving average of $131.56 and a two-hundred day moving average of $144.76. The company has a market cap of $10.11 billion, a PE ratio of 24.56, a price-to-earnings-growth ratio of 1.79 and a beta of 1.00.

Houlihan Lokey (NYSE:HLI - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The financial services provider reported $1.85 EPS for the quarter, beating the consensus estimate of $1.63 by $0.22. The business had revenue of $692.00 million for the quarter, compared to the consensus estimate of $625.88 million. Houlihan Lokey had a net margin of 15.78% and a return on equity of 19.97%. The company's revenue was up 4.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.84 earnings per share. Sell-side analysts expect that Houlihan Lokey, Inc. will post 7.18 EPS for the current fiscal year.

Houlihan Lokey Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date is Tuesday, December 1st. Houlihan Lokey's dividend payout ratio is presently 46.98%.

Insider Activity at Houlihan Lokey

In related news, General Counsel Christopher M. Crain sold 1,000 shares of the company's stock in a transaction that occurred on Thursday, September 10th. The shares were sold at an average price of $140.15, for a total transaction of $140,150.00. Following the sale, the general counsel directly owned 1,000 shares in the company, valued at approximately $140,150. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Insiders own 22.53% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. SBI Securities Co. Ltd. increased its holdings in Houlihan Lokey by 400.0% during the 3rd quarter. SBI Securities Co. Ltd. now owns 210 shares of the financial services provider's stock worth $27,000 after acquiring an additional 168 shares during the period. Annis Gardner Whiting Capital Advisors LLC lifted its stake in 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 purchasing an additional 120 shares in the last quarter. Provenance Wealth Advisors LLC purchased a new stake in Houlihan Lokey in the 3rd quarter worth approximately $34,000. Harbor Investment Advisory LLC bought a new position in Houlihan Lokey in the 2nd quarter valued at $55,000. Finally, Versant Capital Management Inc boosted its holdings in Houlihan Lokey by 91.0% in the 2nd quarter. Versant Capital Management Inc now owns 510 shares of the financial services provider's stock valued at $68,000 after purchasing an additional 243 shares during the period. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Houlihan Lokey Company Profile

Houlihan Lokey, Inc is a global investment banking and financial advisory firm that provides services to corporations, institutions, financial sponsors and governments. The company advises clients on mergers and acquisitions, capital raising, financial restructuring and other strategic and corporate finance matters.

Its business also includes valuation and financial opinions, including fairness opinions, solvency opinions and other transaction-related analyses. Houlihan Lokey serves clients across a range of industries, with particular expertise in areas such as technology, media and telecommunications; financial services; healthcare; industrials; consumer products and services; and energy and natural resources.

Founded in 1972 by Roger Houlihan and O.

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