Houlihan Lokey (NYSE:HLI) Sees Unusually-High Trading Volume Following Analyst Upgrade

Houlihan Lokey, Inc. (NYSE:HLI) shares saw unusually-strong trading volume on Thursday after Wolfe Research upgraded the stock from an underperform rating to a peer perform rating. 2,446,027 shares were traded during mid-day trading, an increase of 279% from the previous session’s volume of 644,945 shares.The stock last traded at $137.8940 and had previously closed at $134.31.

A number of other analysts have also recently commented on HLI. Zacks Research upgraded Houlihan Lokey from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 11th. Keefe, Bruyette & Woods dropped their price target on Houlihan Lokey from $177.00 to $172.00 and set an “outperform” rating on the stock in a research note on Thursday, May 7th. Morgan Stanley cut their price target on Houlihan Lokey from $205.00 to $193.00 and set an “overweight” rating on the stock in a research report on Thursday, April 9th. The Goldman Sachs Group reduced their price objective on Houlihan Lokey from $210.00 to $184.00 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Finally, Weiss Ratings downgraded Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, April 21st. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $190.88.

Insider Activity

In related news, Chairman Scott L. Beiser sold 6,265 shares of the firm’s stock in a transaction dated Thursday, May 21st. The stock was sold at an average price of $150.26, for a total transaction of $941,378.90. Following the transaction, the chairman owned 6,265 shares of the company’s stock, valued at $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 SEC, which is available through this link. 22.83% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of HLI. Resources Management Corp CT ADV raised its stake in shares of Houlihan Lokey by 0.9% during the second quarter. Resources Management Corp CT ADV now owns 5,845 shares of the financial services provider’s stock worth $1,052,000 after purchasing an additional 55 shares during the last quarter. Huntington National Bank lifted its holdings in shares of Houlihan Lokey by 5.5% during the fourth quarter. Huntington National Bank now owns 1,156 shares of the financial services provider’s stock worth $201,000 after purchasing an additional 60 shares during the period. Moneta Group Investment Advisors LLC grew its position in Houlihan Lokey by 1.2% in the 4th quarter. Moneta Group Investment Advisors LLC now owns 5,267 shares of the financial services provider’s stock valued at $917,000 after buying an additional 61 shares during the last quarter. Northwestern Mutual Wealth Management Co. grew its position in Houlihan Lokey by 7.9% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider’s stock valued at $196,000 after buying an additional 70 shares during the last quarter. Finally, IFP Advisors Inc increased its stake in Houlihan Lokey by 4.4% in the 4th quarter. IFP Advisors Inc now owns 1,694 shares of the financial services provider’s stock valued at $295,000 after buying an additional 72 shares during the period. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Houlihan Lokey Trading Up 2.8%

The company has a market capitalization of $9.53 billion, a price-to-earnings ratio of 22.17, a PEG ratio of 1.08 and a beta of 0.95. The firm’s 50 day simple moving average is $144.05 and its 200-day simple moving average is $156.83.

Houlihan Lokey (NYSE:HLI) last released its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 EPS for the quarter, missing the consensus estimate of $1.79 by ($0.16). The firm had revenue of $635.64 million during the quarter, compared to analyst estimates of $679.22 million. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.The firm’s revenue was down 4.6% on a year-over-year basis. During the same quarter last year, the business posted $1.96 EPS. As a group, sell-side analysts forecast that Houlihan Lokey, Inc. will post 8.54 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Investors of record on Monday, June 1st were given a $0.70 dividend. The ex-dividend date was Monday, June 1st. This is an increase from Houlihan Lokey’s previous quarterly dividend of $0.60. This represents a $2.80 dividend on an annualized basis and a yield of 2.0%. Houlihan Lokey’s payout ratio is 45.02%.

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.