Houlihan Lokey (NYSE:HLI) Reaches New 1-Year Low – Here’s What Happened

Houlihan Lokey, Inc. (NYSE:HLI)’s share price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $133.40 and last traded at $132.9050, with a volume of 63777 shares changing hands. The stock had previously closed at $138.55.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the stock. Morgan Stanley dropped their target price on shares of Houlihan Lokey from $205.00 to $193.00 and set an “overweight” rating for the company in a research report on Thursday, April 9th. Weiss Ratings cut shares of Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, April 21st. Keefe, Bruyette & Woods decreased their price target on shares of Houlihan Lokey from $177.00 to $172.00 and set an “outperform” rating for the company in a research note on Thursday, May 7th. The Goldman Sachs Group lowered their price objective on shares of Houlihan Lokey from $210.00 to $184.00 and set a “buy” rating for the company in a report on Wednesday, April 1st. Finally, Zacks Research raised Houlihan Lokey from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 11th. Five investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $191.29.

Houlihan Lokey Stock Performance

The business’s 50-day moving average is $147.62 and its 200-day moving average is $159.10. The company has a market capitalization of $9.15 billion, a PE ratio of 21.34, a PEG ratio of 1.08 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI) last announced its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.16). Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The business had revenue of $635.64 million during the quarter, compared to analysts’ expectations of $679.22 million. During the same quarter last year, the company posted $1.96 EPS. Houlihan Lokey’s revenue for the quarter was down 4.6% compared to the same quarter last year. Analysts expect that Houlihan Lokey, Inc. will post 8.54 EPS for the current year.

Houlihan Lokey Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were paid a $0.70 dividend. This represents a $2.80 annualized dividend and a dividend yield of 2.1%. The ex-dividend date was Monday, June 1st. This is an increase from Houlihan Lokey’s previous quarterly dividend of $0.60. Houlihan Lokey’s dividend payout ratio (DPR) is currently 45.02%.

Insider Buying and Selling

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 transaction of $941,378.90. Following the completion of the transaction, the chairman owned 6,265 shares of the company’s stock, valued at $941,378.90. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, General Counsel Christopher M. Crain sold 500 shares of Houlihan Lokey stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total value of $71,700.00. Following the transaction, the general counsel owned 500 shares of the company’s stock, valued at $71,700. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.83% of the stock is owned by company insiders.

Hedge Funds Weigh In On Houlihan Lokey

Large investors have recently modified their holdings of the stock. Royal Bank of Canada grew its position in Houlihan Lokey by 362.1% during the 4th quarter. Royal Bank of Canada now owns 1,703,369 shares of the financial services provider’s stock valued at $296,706,000 after purchasing an additional 1,334,769 shares during the last quarter. Bank of Montreal Can lifted 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 worth $208,934,000 after buying an additional 1,156,973 shares in the last quarter. Norges Bank bought a new position in shares of Houlihan Lokey in the fourth quarter worth approximately $115,478,000. Vaughan Nelson Investment Management L.P. purchased a new stake in shares of Houlihan Lokey during the first quarter valued at approximately $35,728,000. Finally, Qube Research & Technologies Ltd grew its holdings in shares of Houlihan Lokey by 153.8% during the second quarter. Qube Research & Technologies Ltd now owns 274,387 shares of the financial services provider’s stock valued at $49,376,000 after buying an additional 166,285 shares during the last quarter. Hedge funds and other 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.