Houlihan Lokey (NYSE:HLI) Reaches New 12-Month High – What’s Next?

Houlihan Lokey, Inc. (NYSE:HLI) shares reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $190.81 and last traded at $190.81, with a volume of 91147 shares changing hands. The stock had previously closed at $186.95.

Analyst Upgrades and Downgrades

Several analysts have weighed in on the stock. Keefe, Bruyette & Woods reissued a “market perform” rating and set a $154.00 target price (up previously from $139.00) on shares of Houlihan Lokey in a research report on Wednesday, July 31st. Wells Fargo & Company began coverage on Houlihan Lokey in a research note on Thursday, September 12th. They issued an “underweight” rating and a $149.00 target price for the company. UBS Group increased their price objective on Houlihan Lokey from $170.00 to $190.00 and gave the company a “buy” rating in a report on Tuesday, October 8th. JPMorgan Chase & Co. decreased their target price on Houlihan Lokey from $132.00 to $129.00 and set a “neutral” rating for the company in a report on Wednesday, July 31st. Finally, Morgan Stanley increased their price target on shares of Houlihan Lokey from $146.00 to $163.00 and gave the stock an “equal weight” rating in a report on Monday, September 23rd. One research analyst has rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average target price of $157.00.

Houlihan Lokey Stock Performance

The stock has a market capitalization of $13.11 billion, a PE ratio of 38.24 and a beta of 0.65. The firm’s 50 day moving average is $168.87 and its two-hundred day moving average is $150.82.

Houlihan Lokey (NYSE:HLI) last released its quarterly earnings data on Wednesday, October 30th. The financial services provider reported $1.46 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.31 by $0.15. Houlihan Lokey had a net margin of 15.77% and a return on equity of 19.29%. The business had revenue of $574.96 million during the quarter, compared to analysts’ expectations of $537.93 million. During the same period in the previous year, the company earned $1.11 EPS. The company’s revenue for the quarter was up 23.1% on a year-over-year basis. On average, analysts anticipate that Houlihan Lokey, Inc. will post 5.79 EPS for the current year.

Houlihan Lokey Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Sunday, December 15th. Stockholders of record on Monday, December 2nd will be issued a dividend of $0.57 per share. This represents a $2.28 dividend on an annualized basis and a dividend yield of 1.21%. The ex-dividend date is Monday, December 2nd. Houlihan Lokey’s payout ratio is currently 46.63%.

Insider Activity at Houlihan Lokey

In other news, Director Gillian Beth Zucker sold 200 shares of the business’s stock in a transaction on Monday, October 14th. The shares were sold at an average price of $168.08, for a total transaction of $33,616.00. Following the transaction, the director now directly owns 6,601 shares of the company’s stock, valued at approximately $1,109,496.08. The trade was a 2.94 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, General Counsel Christopher M. Crain sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 3rd. The shares were sold at an average price of $155.29, for a total value of $155,290.00. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 1,400 shares of company stock worth $219,362. Company insiders own 23.68% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in HLI. Vanguard Group Inc. grew its stake in Houlihan Lokey by 0.6% during the 1st quarter. Vanguard Group Inc. now owns 5,104,143 shares of the financial services provider’s stock valued at $654,300,000 after acquiring an additional 29,843 shares in the last quarter. Earnest Partners LLC grew its holdings in Houlihan Lokey by 1.9% during the 2nd quarter. Earnest Partners LLC now owns 3,273,818 shares of the financial services provider’s stock worth $441,507,000 after acquiring an additional 62,314 shares during the last quarter. Kayne Anderson Rudnick Investment Management LLC grew its position in shares of Houlihan Lokey by 1.3% during the 2nd quarter. Kayne Anderson Rudnick Investment Management LLC now owns 3,087,898 shares of the financial services provider’s stock worth $416,434,000 after buying an additional 38,155 shares during the period. State Street Corp grew its holdings in Houlihan Lokey by 1.3% during the 3rd quarter. State Street Corp now owns 1,615,467 shares of the financial services provider’s stock worth $255,276,000 after acquiring an additional 21,106 shares during the period. Finally, Geode Capital Management LLC raised its position in shares of Houlihan Lokey by 2.8% in the 3rd quarter. Geode Capital Management LLC now owns 970,559 shares of the financial services provider’s stock valued at $153,405,000 after acquiring an additional 26,564 shares during the period. 78.07% of the stock is currently owned by institutional investors and hedge funds.

About Houlihan Lokey

Houlihan Lokey, Inc, an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory.