Wolfe Research Upgrades Houlihan Lokey (NYSE:HLI) to "Peer Perform"

Key Points

• Wolfe Research upgraded Houlihan Lokey from “underperform” to “peer perform,” while the broader analyst view remains mixed with an overall Moderate Buy consensus and a $191.43 price target.
• Houlihan Lokey shares fell 3.6% and were trading at $134.15, near their 52-week low of $131.30 and well below the 52-week high of $211.78.
• The company’s latest earnings missed expectations, with EPS of $1.63 versus $1.79 expected and revenue of $635.64 million versus $679.22 million forecast, though it still posted a 16.26% net margin and 22.88% return on equity.

Houlihan Lokey (NYSE:HLI - Get Free Report) was upgraded by stock analysts at Wolfe Research from an "underperform" rating to a "peer perform" rating in a research report issued to clients and investors on Thursday, MarketBeat.com reports.

HLI has been the topic of a number of other research reports. Morgan Stanley cut their price objective on shares of Houlihan Lokey from $205.00 to $193.00 and set an "overweight" rating on the stock in a report on Thursday, April 9th. Keefe, Bruyette & Woods cut their price target on Houlihan Lokey from $177.00 to $172.00 and set an "outperform" rating on the stock in a research note on Thursday, May 7th. UBS Group upped their target price on Houlihan Lokey from $160.00 to $161.00 and gave the company a "neutral" rating in a research report on Wednesday. Zacks Research raised shares of Houlihan Lokey from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 11th. Finally, The Goldman Sachs Group dropped their price target on shares of Houlihan Lokey from $210.00 to $184.00 and set a "buy" rating for the company in a research note on Wednesday, April 1st. Five research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $191.43.

Houlihan Lokey Stock Down 3.6%

NYSE HLI opened at $134.15 on Thursday. The stock has a market cap of $9.26 billion, a PE ratio of 21.57, a P/E/G ratio of 1.08 and a beta of 0.95. Houlihan Lokey has a fifty-two week low of $131.30 and a fifty-two week high of $211.78. The business has a 50 day moving average price of $144.05 and a two-hundred day moving average price of $156.83.

Houlihan Lokey (NYSE:HLI - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.79 by ($0.16). Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The firm had revenue of $635.64 million for the quarter, compared to analysts' expectations of $679.22 million. During the same quarter in the prior year, the business earned $1.96 EPS. The company's revenue for the quarter was down 4.6% on a year-over-year basis. Sell-side analysts anticipate that Houlihan Lokey will post 8.54 EPS for the current fiscal year.

Insider Buying and Selling at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the firm's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total value of $941,378.90. Following the sale, the chairman owned 6,265 shares of the company's stock, valued at approximately $941,378.90. This trade represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 22.83% of the company's stock.

Hedge Funds Weigh In On Houlihan Lokey

Several hedge funds and other institutional investors have recently modified their holdings of HLI. Royal Bank of Canada lifted its position in Houlihan Lokey by 2.8% in 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 purchasing an additional 48,126 shares during the last quarter. Geode Capital Management LLC grew its position in Houlihan Lokey by 6.4% in the 4th quarter. Geode Capital Management LLC now owns 1,418,549 shares of the financial services provider's stock worth $247,133,000 after purchasing an additional 84,757 shares during the last quarter. Bank of Montreal Can increased its stake in shares of Houlihan Lokey by 2,723.2% in the fourth quarter. Bank of Montreal Can now owns 1,199,459 shares of the financial services provider's stock valued at $208,934,000 after purchasing an additional 1,156,973 shares during the period. Bank of America Corp DE increased its stake in shares of Houlihan Lokey by 4.1% in the second quarter. Bank of America Corp DE now owns 1,041,990 shares of the financial services provider's stock valued at $187,506,000 after purchasing an additional 41,470 shares during the period. Finally, Capital Research Global Investors raised its holdings in shares of Houlihan Lokey by 0.6% during the fourth quarter. Capital Research Global Investors now owns 962,263 shares of the financial services provider's stock valued at $167,617,000 after buying an additional 5,822 shares during the last quarter. Institutional investors and hedge funds own 78.07% of the company's stock.

Houlihan Lokey Company Profile

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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