Houlihan Lokey (NYSE:HLI) Stock Breaks Below 200-Day Moving Average - Should You Sell?

Key Points

• Shares slipped below the 200-day moving average, briefly reaching $142.09 against a $142.95 average, before last trading at about $142.88.
• Analysts maintain a “Moderate Buy” consensus: seven rate HLI a Buy and five a Hold, with an average price target of $160.44.
• Quarterly results beat expectations, with EPS of $1.85 versus $1.63 forecast and revenue of $692 million; the company also declared a $0.70 quarterly dividend.

Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) shares passed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $142.95 and traded as low as $142.09. Houlihan Lokey shares last traded at $142.8820, with a volume of 401,233 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on HLI. Zacks Research raised shares of Houlihan Lokey from a "strong sell" rating to a "hold" rating in a research report on Tuesday, October 13th. JPMorgan Chase & Co. raised their price target on shares of Houlihan Lokey from $147.00 to $153.00 and gave the stock a "neutral" rating in a report on Thursday, October 29th. The Goldman Sachs Group lowered their price objective on shares of Houlihan Lokey from $171.00 to $148.00 and set a "buy" rating on the stock in a research report on Thursday, July 30th. UBS Group upped their price objective on shares of Houlihan Lokey from $147.00 to $154.00 and gave the company a "neutral" rating in a research note on Wednesday, October 7th. Finally, BMO Capital Markets cut their target price on shares of Houlihan Lokey from $160.00 to $145.00 and set an "outperform" rating for the company in a research report on Monday, August 3rd. Seven analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $160.44.

Houlihan Lokey Price Performance

The stock has a market cap of $9.92 billion, a price-to-earnings ratio of 23.97, a P/E/G ratio of 1.69 and a beta of 0.90. The business has a fifty day moving average of $134.22 and a 200 day moving average of $142.95.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its earnings results on Wednesday, October 28th. The financial services provider reported $1.85 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.63 by $0.22. The firm had revenue of $692.00 million during the quarter, compared to analysts' expectations of $625.88 million. Houlihan Lokey had a net margin of 15.78% and a return on equity of 19.94%. The company's revenue was up 4.9% compared to the same quarter last year. During the same period in the previous year, the company earned $1.84 earnings per share. On average, analysts expect that Houlihan Lokey, Inc. will post 7.24 EPS for the current year.

Houlihan Lokey Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be issued a dividend of $0.70 per share. The ex-dividend date is Tuesday, December 1st. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.0%. Houlihan Lokey's dividend payout ratio (DPR) is currently 46.98%.

Insider Activity

In related news, General Counsel Christopher M. Crain sold 1,000 shares of Houlihan Lokey stock in a transaction on Thursday, September 10th. The shares were sold at an average price of $140.15, for a total value of $140,150.00. Following the completion of the sale, the general counsel owned 1,000 shares of the company's stock, valued at approximately $140,150. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 22.53% of the company's stock.

Hedge Funds Weigh In On Houlihan Lokey

Several institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada increased its holdings in shares of Houlihan Lokey by 2.8% during the 1st quarter. Royal Bank of Canada now owns 1,751,495 shares of the financial services provider's stock valued at $251,551,000 after acquiring an additional 48,126 shares during the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Houlihan Lokey by 15.2% in the 1st quarter. Dimensional Fund Advisors LP now owns 616,519 shares of the financial services provider's stock valued at $88,540,000 after acquiring an additional 81,182 shares in the last quarter. Van Berkom & Associates Inc. lifted its holdings in Houlihan Lokey by 16.4% in the 3rd quarter. Van Berkom & Associates Inc. now owns 508,072 shares of the financial services provider's stock worth $64,190,000 after purchasing an additional 71,660 shares during the last quarter. GW&K Investment Management LLC lifted its holdings in Houlihan Lokey by 26.4% in the 3rd quarter. GW&K Investment Management LLC now owns 442,002 shares of the financial services provider's stock worth $55,842,000 after purchasing an additional 92,302 shares during the last quarter. Finally, Fenimore Asset Management Inc lifted its holdings in Houlihan Lokey by 52.9% in the 3rd quarter. Fenimore Asset Management Inc now owns 256,760 shares of the financial services provider's stock worth $32,439,000 after purchasing an additional 88,862 shares during the last quarter. 78.07% of the stock is currently owned by institutional investors.

About Houlihan Lokey

Houlihan Lokey, Inc. is a global investment bank headquartered in Los Angeles. Founded in 1972, the firm provides financial advice and related services to corporations, financial sponsors, governments and other organizations. The company's main businesses include corporate finance, financial restructuring and financial and valuation advisory. Its services include advising on mergers and acquisitions, debt and equity financing, restructuring transactions, and business and asset valuations. Houlihan Lokey serves clients across the Americas, Europe, the Middle East and Asia-Pacific through an international office network.

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