Houlihan Lokey, Inc. (NYSE:HLI) Receives Consensus Recommendation of “Reduce” from Brokerages

Houlihan Lokey, Inc. (NYSE:HLI) has earned a consensus recommendation of “Reduce” from the six brokerages that are currently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating, three have assigned a hold rating and one has assigned a buy rating to the company. The average 1-year price target among analysts that have issued a report on the stock in the last year is $173.40.

A number of research analysts have commented on the stock. UBS Group raised their target price on shares of Houlihan Lokey from $170.00 to $190.00 and gave the company a “buy” rating in a research report on Tuesday, October 8th. Morgan Stanley cut Houlihan Lokey from an “equal weight” rating to an “underweight” rating and increased their target price for the company from $171.00 to $200.00 in a research report on Monday, December 9th. Keefe, Bruyette & Woods reduced their price target on Houlihan Lokey from $172.00 to $170.00 and set a “market perform” rating for the company in a research report on Monday, January 13th. Wells Fargo & Company dropped their price objective on Houlihan Lokey from $180.00 to $178.00 and set an “underweight” rating on the stock in a research report on Tuesday, January 14th. Finally, StockNews.com downgraded shares of Houlihan Lokey from a “buy” rating to a “hold” rating in a report on Wednesday, November 20th.

Houlihan Lokey Price Performance

HLI stock opened at $186.08 on Wednesday. The company has a market capitalization of $12.93 billion, a PE ratio of 38.05 and a beta of 0.69. Houlihan Lokey has a 12 month low of $119.28 and a 12 month high of $192.10. The firm’s 50-day moving average is $179.32 and its 200 day moving average is $166.00.

Houlihan Lokey (NYSE:HLI) last issued its earnings results on Wednesday, October 30th. The financial services provider reported $1.46 earnings per share for the quarter, topping the consensus estimate of $1.31 by $0.15. The business had revenue of $574.96 million during the quarter, compared to analysts’ expectations of $537.93 million. Houlihan Lokey had a return on equity of 19.29% and a net margin of 15.77%. The business’s revenue for the quarter was up 23.1% compared to the same quarter last year. During the same period in the prior year, the business earned $1.11 EPS. Sell-side analysts forecast that Houlihan Lokey will post 5.74 EPS for the current fiscal year.

Houlihan Lokey Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Sunday, December 15th. Stockholders of record on Monday, December 2nd were paid a dividend of $0.57 per share. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $2.28 dividend on an annualized basis and a dividend yield of 1.23%. Houlihan Lokey’s payout ratio is 46.63%.

Institutional Investors Weigh In On Houlihan Lokey

A number of large investors have recently made changes to their positions in the stock. Financial Life Planners purchased a new stake in shares of Houlihan Lokey in the 4th quarter valued at $33,000. Wolff Wiese Magana LLC acquired a new position in Houlihan Lokey in the third quarter valued at approximately $38,000. First Horizon Advisors Inc. grew its stake in shares of Houlihan Lokey by 81.5% during the 3rd quarter. First Horizon Advisors Inc. now owns 441 shares of the financial services provider’s stock worth $70,000 after purchasing an additional 198 shares during the period. Quarry LP acquired a new position in shares of Houlihan Lokey in the 3rd quarter valued at $76,000. Finally, Benjamin F. Edwards & Company Inc. boosted its holdings in Houlihan Lokey by 69.1% during the second quarter. Benjamin F. Edwards & Company Inc. now owns 678 shares of the financial services provider’s stock worth $91,000 after buying an additional 277 shares in the last quarter. 78.07% of the stock is owned by hedge funds and other institutional investors.

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.