Keefe, Bruyette & Woods Has Lowered Expectations for Houlihan Lokey (NYSE:HLI) Stock Price

Houlihan Lokey (NYSE:HLI) had its price objective decreased by investment analysts at Keefe, Bruyette & Woods from $160.00 to $153.00 in a report issued on Thursday,Benzinga reports. The firm currently has an “outperform” rating on the financial services provider’s stock. Keefe, Bruyette & Woods’ target price would suggest a potential upside of 22.20% from the stock’s current price.

A number of other equities analysts also recently weighed in on the stock. Bank of America started coverage on shares of Houlihan Lokey in a report on Friday, July 10th. They issued a “buy” rating and a $164.00 price target on the stock. Weiss Ratings reiterated a “hold (c)” rating on shares of Houlihan Lokey in a research note on Friday, July 17th. Morgan Stanley reduced their target price on shares of Houlihan Lokey from $193.00 to $187.00 and set an “overweight” rating for the company in a research report on Thursday, July 9th. US Capital Advisors set a $187.00 price target on shares of Houlihan Lokey in a report on Thursday, July 9th. Finally, Wolfe Research upgraded Houlihan Lokey from an “underperform” rating to a “peer perform” rating in a research note on Thursday, July 9th. Five research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $174.62.

Houlihan Lokey Price Performance

Shares of HLI opened at $125.21 on Thursday. Houlihan Lokey has a one year low of $112.83 and a one year high of $211.78. The company has a market cap of $8.65 billion, a PE ratio of 21.04, a P/E/G ratio of 1.09 and a beta of 0.95. The stock has a 50-day moving average of $139.40 and a 200-day moving average of $152.13.

Houlihan Lokey (NYSE:HLI) last posted its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing analysts’ consensus estimates of $1.64 by ($0.29). Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.The firm had revenue of $511.00 million for the quarter, compared to analyst estimates of $602.38 million. During the same period last year, the company posted $2.14 earnings per share. The firm’s quarterly revenue was down 15.6% compared to the same quarter last year. Analysts expect that Houlihan Lokey will post 7.91 EPS for the current fiscal year.

Insider Transactions at Houlihan Lokey

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of the stock in a transaction 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 sale, the chairman owned 6,265 shares in the company, valued at $941,378.90. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 22.83% of the stock is owned by insiders.

Institutional Trading of Houlihan Lokey

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada boosted its position in shares of Houlihan Lokey by 2.8% in the first quarter. Royal Bank of Canada now owns 1,751,495 shares of the financial services provider’s stock valued at $251,551,000 after acquiring an additional 48,126 shares during the period. Geode Capital Management LLC increased its holdings in Houlihan Lokey by 6.4% during 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 acquiring an additional 84,757 shares during the period. Bank of Montreal Can lifted its stake in Houlihan Lokey by 2,723.2% in the 4th quarter. Bank of Montreal Can now owns 1,199,459 shares of the financial services provider’s stock worth $208,934,000 after purchasing an additional 1,156,973 shares in the last quarter. Bank of America Corp DE lifted its stake in Houlihan Lokey by 4.1% in the 2nd quarter. Bank of America Corp DE now owns 1,041,990 shares of the financial services provider’s stock worth $187,506,000 after purchasing an additional 41,470 shares in the last quarter. Finally, Capital Research Global Investors boosted its holdings in Houlihan Lokey by 0.6% in the 4th quarter. Capital Research Global Investors now owns 962,263 shares of the financial services provider’s stock valued at $167,617,000 after purchasing an additional 5,822 shares during the period. 78.07% of the stock is currently owned by institutional investors.

Houlihan Lokey News Roundup

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable September 15 to shareholders of record September 1. The dividend implies an annualized yield of approximately 2.2%, providing shareholder income.
• Positive Sentiment: Morgan Stanley maintained an “overweight” rating despite lowering its price target to $177 from $187, while Keefe, Bruyette & Woods retained an “outperform” rating and reduced its target to $153 from $160. Both targets remain substantially above the recent trading level, suggesting analysts expect a recovery.
• Neutral Sentiment: UBS lowered its price target to $147 from $161 and maintained a “neutral” rating. The revised target still indicates upside, but the cut reflects more cautious expectations for the company’s valuation or near-term performance. Houlihan Lokey Given New $147 Price Target at UBS Group
• Negative Sentiment: Fiscal Q1 earnings were well below expectations: adjusted EPS was $1.35 versus the $1.64 consensus, and revenue was $511 million versus $602.38 million expected. EPS also fell from $2.14 a year earlier, while revenue declined 15.6% year over year. The sizable earnings and revenue misses are the primary catalyst weighing on HLI. Houlihan Lokey Misses Q1 Earnings and Revenue Estimates

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.