Houlihan Lokey (NYSE:HLI) Shares Cross Below 50 Day Moving Average - Time to Sell?

Key Points

• Houlihan Lokey shares fell below their 50-day moving average, trading as low as $127.52 versus a 50-day average of $132.99; the stock last traded around $131.26.
• The company’s latest quarterly results missed expectations, with EPS of $1.35 versus $1.64 expected and revenue of $511 million versus $602.38 million forecast. Revenue declined 15.6% year over year, contributing to a consensus analyst rating of “Hold.”
• Houlihan Lokey declared a quarterly dividend of $0.70 per share, equivalent to an annualized $2.80 payout and a 2.1% yield, while institutional investors own 78.07% of the stock.

Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report)'s stock price crossed below its fifty day moving average during trading on Tuesday . The stock has a fifty day moving average of $132.99 and traded as low as $127.52. Houlihan Lokey shares last traded at $131.2640, with a volume of 850,440 shares.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the stock. Wall Street Zen cut shares of Houlihan Lokey from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Weiss Ratings reiterated a "hold (c)" rating on shares of Houlihan Lokey in a research note on Friday, July 17th. Zacks Research cut Houlihan Lokey from a "hold" rating to a "strong sell" rating in a report on Friday, August 21st. Wolfe Research upgraded Houlihan Lokey from an "underperform" rating to a "peer perform" rating in a research report on Thursday, July 9th. Finally, Keefe, Bruyette & Woods decreased their price target on Houlihan Lokey from $160.00 to $153.00 and set an "outperform" rating on the stock in a research note on Thursday, July 30th. Five investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $166.38.

Houlihan Lokey Trading Down 1.0%

The stock has a market capitalization of $9.07 billion, a P/E ratio of 22.06, a P/E/G ratio of 1.52 and a beta of 0.96. The firm's fifty day moving average is $132.99 and its 200-day moving average is $140.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last issued its quarterly earnings data on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing the consensus estimate of $1.64 by ($0.29). The firm had revenue of $511.00 million for the quarter, compared to the consensus estimate of $602.38 million. Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.Houlihan Lokey's quarterly revenue was down 15.6% compared to the same quarter last year. During the same period in the prior year, the company posted $2.14 earnings per share. Equities research analysts expect that Houlihan Lokey, Inc. will post 6.93 EPS for the current year.

Houlihan Lokey Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were given a dividend of $0.70 per share. The ex-dividend date was Tuesday, September 1st. This represents a $2.80 dividend on an annualized basis and a yield of 2.1%. Houlihan Lokey's dividend payout ratio is 47.06%.

Insiders Place Their Bets

In related news, General Counsel Christopher M. Crain sold 1,000 shares of the firm's stock in a transaction on Thursday, September 10th. The stock was sold at an average price of $140.15, for a total transaction of $140,150.00. Following the completion of the sale, the general counsel directly owned 1,000 shares of the company's stock, valued at $140,150. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 22.53% of the stock is owned by corporate insiders.

Institutional Trading of Houlihan Lokey

Several large investors have recently made changes to their positions in the business. Sequoia Financial Advisors LLC increased its position in Houlihan Lokey by 27.1% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 3,328 shares of the financial services provider's stock valued at $446,000 after acquiring an additional 710 shares in the last quarter. Integrated Wealth Concepts LLC lifted its position in shares of Houlihan Lokey by 19.8% during the second quarter. Integrated Wealth Concepts LLC now owns 3,780 shares of the financial services provider's stock worth $507,000 after purchasing an additional 624 shares in the last quarter. Squarepoint Ops LLC lifted its position in shares of Houlihan Lokey by 356.7% during the second quarter. Squarepoint Ops LLC now owns 78,512 shares of the financial services provider's stock worth $10,531,000 after purchasing an additional 61,321 shares in the last quarter. Baird Financial Group Inc. grew its stake in shares of Houlihan Lokey by 2.7% during the second quarter. Baird Financial Group Inc. now owns 20,327 shares of the financial services provider's stock valued at $2,726,000 after purchasing an additional 538 shares during the last quarter. Finally, Nykredit A S bought a new stake in shares of Houlihan Lokey during the second quarter valued at approximately $348,000. Institutional investors own 78.07% of the company's stock.

About Houlihan Lokey

Houlihan Lokey, Inc is a global investment bank that provides financial advisory services to corporations, financial sponsors, governments and other institutions. Its principal activities include mergers and acquisitions, capital markets advisory, financial restructuring, and valuation and financial opinions.

The company advises clients on acquisitions, divestitures, strategic alternatives, recapitalizations, fairness opinions and other complex financial matters. Its restructuring business supports companies, creditors and other stakeholders dealing with distressed situations, while its valuation and financial advisory practice provides analyses related to financial reporting, tax, litigation and strategic planning.

Founded in 1972, Houlihan Lokey has expanded from its origins in the United States into an international advisory firm serving clients across North America, Europe, the Asia-Pacific region and other global markets.

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