UBS Group Cuts Houlihan Lokey (NYSE:HLI) Price Target to $147.00

Houlihan Lokey (NYSE:HLI) had its target price trimmed by UBS Group from $161.00 to $147.00 in a research note released on Thursday,Benzinga reports. The brokerage currently has a neutral rating on the financial services provider’s stock.

A number of other research firms have also issued reports on HLI. Morgan Stanley dropped their price objective on shares of Houlihan Lokey from $187.00 to $177.00 and set an “overweight” rating on the stock in a research note on Thursday. US Capital Advisors set a $187.00 target price on shares of Houlihan Lokey in a research note on Thursday, July 9th. Bank of America began coverage on shares of Houlihan Lokey in a report on Friday, July 10th. They set a “buy” rating and a $164.00 price target for the company. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Houlihan Lokey in a research note on Friday, July 17th. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating on the stock in a report on Thursday. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $174.62.

Houlihan Lokey Price Performance

Shares of NYSE HLI opened at $125.21 on Thursday. The company has a market capitalization of $8.65 billion, a price-to-earnings ratio of 21.04, a PEG ratio of 1.06 and a beta of 0.95. Houlihan Lokey has a 1-year low of $112.83 and a 1-year high of $211.78. The business has a 50-day moving average of $139.40 and a 200-day moving average of $152.13.

Houlihan Lokey (NYSE:HLI) last released its quarterly earnings results on Wednesday, July 29th. The financial services provider reported $1.35 EPS for the quarter, missing the consensus estimate of $1.64 by ($0.29). The company had revenue of $511.00 million for the quarter, compared to analyst estimates of $602.38 million. Houlihan Lokey had a return on equity of 20.20% and a net margin of 16.10%.The business’s revenue was down 15.6% on a year-over-year basis. During the same period last year, the firm posted $2.14 earnings per share. Research analysts expect that Houlihan Lokey will post 7.55 EPS for the current fiscal year.

Houlihan Lokey Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be given a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, September 1st. Houlihan Lokey’s dividend payout ratio is presently 47.06%.

Insider Buying and Selling at Houlihan Lokey

In other news, Chairman Scott L. Beiser sold 6,265 shares of the firm’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $150.26, for a total transaction of $941,378.90. Following the completion of 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 ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 22.83% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Fulton Bank N.A. increased its position in shares of Houlihan Lokey by 5.0% in the 2nd quarter. Fulton Bank N.A. now owns 5,696 shares of the financial services provider’s stock worth $764,000 after purchasing an additional 271 shares during the last quarter. Franklin Parlapiano Turner & Welch LLC lifted its position in shares of Houlihan Lokey by 1.0% during the second quarter. Franklin Parlapiano Turner & Welch LLC now owns 53,484 shares of the financial services provider’s stock worth $7,174,000 after purchasing an additional 520 shares during the last quarter. Assenagon Asset Management S.A. lifted its position in shares of Houlihan Lokey by 7.5% during the second quarter. Assenagon Asset Management S.A. now owns 126,476 shares of the financial services provider’s stock worth $16,964,000 after purchasing an additional 8,871 shares during the last quarter. GAMMA Investing LLC grew its stake in Houlihan Lokey by 24.1% in the second quarter. GAMMA Investing LLC now owns 8,140 shares of the financial services provider’s stock worth $1,092,000 after purchasing an additional 1,581 shares in the last quarter. Finally, Harbor Investment Advisory LLC acquired a new position in Houlihan Lokey in the second quarter worth about $55,000. 78.07% of the stock is currently owned by institutional investors.

Houlihan Lokey News Summary

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

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.