The Goldman Sachs Group Cuts Houlihan Lokey (NYSE:HLI) Price Target to $184.00

Key Points

• Goldman Sachs cut its Houlihan Lokey price target from $210 to $184 but kept a "buy" rating, implying roughly a 28.5% upside from the current share price.
• Analysts' consensus remains a Moderate Buy with an average target of $200.86, while HLI shares trade around $143.22 (market cap ≈ $10B), well below the average analyst targets.
• Houlihan Lokey posted an EPS beat ($1.94 vs. $1.85) with revenue up 13% and strong profitability metrics (net margin ~16.9%, ROE ~24.5%), underscoring solid fundamentals despite some target cuts.

Houlihan Lokey (NYSE:HLI - Get Free Report) had its target price lowered by equities research analysts at The Goldman Sachs Group from $210.00 to $184.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the financial services provider's stock. The Goldman Sachs Group's price target would suggest a potential upside of 28.48% from the stock's current price.

Other equities research analysts have also issued research reports about the company. UBS Group lowered their target price on Houlihan Lokey from $196.00 to $163.00 and set a "neutral" rating for the company in a research note on Thursday, March 12th. BMO Capital Markets lifted their price target on Houlihan Lokey from $209.00 to $211.00 and gave the stock an "outperform" rating in a research note on Thursday, January 29th. Weiss Ratings downgraded Houlihan Lokey from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 9th. Morgan Stanley dropped their price objective on Houlihan Lokey from $216.00 to $215.00 and set an "overweight" rating for the company in a research note on Tuesday, January 6th. Finally, Keefe, Bruyette & Woods cut their target price on shares of Houlihan Lokey from $218.00 to $214.00 and set an "outperform" rating on the stock in a report on Thursday, January 29th. Five investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Houlihan Lokey presently has a consensus rating of "Moderate Buy" and an average price target of $200.86.

Houlihan Lokey Stock Performance

Shares of HLI stock traded down $0.40 on Wednesday, hitting $143.22. 294,120 shares of the company's stock traded hands, compared to its average volume of 593,641. The stock has a market capitalization of $10.00 billion, a price-to-earnings ratio of 21.95 and a beta of 0.95. The company's fifty day simple moving average is $159.85 and its 200 day simple moving average is $177.03. Houlihan Lokey has a one year low of $134.41 and a one year high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings results on Thursday, January 29th. The financial services provider reported $1.94 earnings per share for the quarter, topping the consensus estimate of $1.85 by $0.09. Houlihan Lokey had a net margin of 16.91% and a return on equity of 24.46%. During the same period in the prior year, the firm earned $1.64 earnings per share. Houlihan Lokey's revenue was up 13.0% on a year-over-year basis. As a group, sell-side analysts anticipate that Houlihan Lokey will post 5.98 earnings per share for the current fiscal year.

Insider Transactions at Houlihan Lokey

In other Houlihan Lokey news, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction that occurred on Friday, January 2nd. The stock was sold at an average price of $174.17, for a total value of $87,085.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Robert A. Schriesheim sold 5,000 shares of Houlihan Lokey stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $170.86, for a total value of $854,300.00. Following the completion of the sale, the director owned 27,982 shares in the company, valued at approximately $4,781,004.52. This represents a 15.16% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 22.83% of the stock is owned by insiders.

Hedge Funds Weigh In On Houlihan Lokey

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Flagship Harbor Advisors LLC bought a new stake in Houlihan Lokey in the fourth quarter valued at $26,000. Oakworth Capital Inc. purchased a new stake in shares of Houlihan Lokey in the 4th quarter worth about $29,000. Westside Investment Management Inc. boosted its stake in shares of Houlihan Lokey by 64.4% during the 3rd quarter. Westside Investment Management Inc. now owns 148 shares of the financial services provider's stock valued at $30,000 after purchasing an additional 58 shares in the last quarter. Root Financial Partners LLC purchased a new position in shares of Houlihan Lokey during the third quarter valued at about $31,000. Finally, Core Wealth Advisors LLC bought a new position in Houlihan Lokey in the fourth quarter worth about $32,000. Institutional investors own 78.07% of the company's stock.

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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