Houlihan Lokey (NYSE:HLI) Stock Breaks Below 200-Day Moving Average – Should You Sell?

Houlihan Lokey, Inc. (NYSE:HLI)’s share price crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $142.95 and traded as low as $142.09. Houlihan Lokey shares last traded at $142.8820, with a volume of 401,233 shares.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on HLI. BMO Capital Markets reduced their price objective on shares of Houlihan Lokey from $160.00 to $145.00 and set an “outperform” rating for the company in a research note on Monday, August 3rd. The Goldman Sachs Group lowered their target price on shares of Houlihan Lokey from $171.00 to $148.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. JPMorgan Chase & Co. lifted their target price on shares of Houlihan Lokey from $147.00 to $153.00 and gave the stock a “neutral” rating in a report on Thursday, October 29th. Keefe, Bruyette & Woods cut their target price on shares of Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. Finally, Zacks Research upgraded shares of Houlihan Lokey from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 13th. Seven equities research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $160.44.

Houlihan Lokey Stock Down 0.4%

The firm has a 50-day moving average price of $134.22 and a two-hundred day moving average price of $142.95. The company has a market capitalization of $9.92 billion, a P/E ratio of 23.97, a PEG ratio of 1.69 and a beta of 0.90.

Houlihan Lokey (NYSE:HLI) last announced its earnings results on Wednesday, October 28th. The financial services provider reported $1.85 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.63 by $0.22. The business had revenue of $692.00 million for the quarter, compared to analyst estimates of $625.88 million. Houlihan Lokey had a net margin of 15.78% and a return on equity of 19.94%. Houlihan Lokey’s revenue was up 4.9% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.84 earnings per share. On average, analysts predict that Houlihan Lokey, Inc. will post 7.24 EPS for the current fiscal year.

Houlihan Lokey Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be given a $0.70 dividend. This represents a $2.80 annualized dividend and a yield of 2.0%. The ex-dividend date is Tuesday, December 1st. Houlihan Lokey’s dividend payout ratio (DPR) is currently 46.98%.

Insider Transactions at Houlihan Lokey

In other news, General Counsel Christopher M. Crain sold 1,000 shares of the business’s stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $140.15, for a total transaction of $140,150.00. Following the transaction, the general counsel owned 1,000 shares in the company, valued at approximately $140,150. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 22.53% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Houlihan Lokey

Hedge funds have recently made changes to their positions in the stock. Marshall Wace LLP bought a new position in Houlihan Lokey during the third quarter valued at about $260,000. Empowered Funds LLC lifted its position in shares of Houlihan Lokey by 0.7% in the 3rd quarter. Empowered Funds LLC now owns 25,367 shares of the financial services provider’s stock worth $3,205,000 after acquiring an additional 165 shares during the period. Steward Partners Investment Advisory LLC lifted its position in shares of Houlihan Lokey by 5.1% in the 3rd quarter. Steward Partners Investment Advisory LLC now owns 13,166 shares of the financial services provider’s stock worth $1,663,000 after acquiring an additional 635 shares during the period. State Board of Administration of Florida Retirement System grew its holdings in shares of Houlihan Lokey by 1.2% during the 3rd quarter. State Board of Administration of Florida Retirement System now owns 18,137 shares of the financial services provider’s stock worth $2,291,000 after purchasing an additional 208 shares in the last quarter. Finally, Mosaic Family Wealth Partners LLC grew its holdings in shares of Houlihan Lokey by 4.7% during the 3rd quarter. Mosaic Family Wealth Partners LLC now owns 1,612 shares of the financial services provider’s stock worth $204,000 after purchasing an additional 72 shares in the last quarter. Institutional investors own 78.07% of the company’s stock.

About Houlihan Lokey

Houlihan Lokey, Inc. is a global investment bank headquartered in Los Angeles. Founded in 1972, the firm provides financial advice and related services to corporations, financial sponsors, governments and other organizations. The company’s main businesses include corporate finance, financial restructuring and financial and valuation advisory. Its services include advising on mergers and acquisitions, debt and equity financing, restructuring transactions, and business and asset valuations. Houlihan Lokey serves clients across the Americas, Europe, the Middle East and Asia-Pacific through an international office network.