Houlihan Lokey (NYSE:HLI) Stock Rating Raised to Hold at Zacks Research

Zacks Research upgraded shares of Houlihan Lokey (NYSE:HLI) from a strong sell rating to a hold rating in a report published on Tuesday morning,Zacks reports.

Other equities research analysts also recently issued research reports about the stock. Wall Street Zen downgraded shares of Houlihan Lokey from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Citigroup raised Houlihan Lokey to an “outperform” rating in a report on Friday, October 9th. UBS Group lifted their target price on Houlihan Lokey from $147.00 to $154.00 and gave the company a “neutral” rating in a research report on Wednesday, October 7th. The Goldman Sachs Group cut their price target on Houlihan Lokey from $171.00 to $148.00 and set a “buy” rating for the company in a report on Thursday, July 30th. Finally, Keefe, Bruyette & Woods reduced their price target on Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating for the company in a research report on Thursday, July 30th. Seven analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Houlihan Lokey currently has a consensus rating of “Moderate Buy” and a consensus price target of $161.38.

Houlihan Lokey Stock Down 3.5%

NYSE:HLI opened at $124.93 on Tuesday. The stock has a market cap of $8.63 billion, a price-to-earnings ratio of 21.00, a PEG ratio of 1.69 and a beta of 1.00. The company’s 50 day moving average price is $130.23 and its 200-day moving average price is $139.26. Houlihan Lokey has a 52 week low of $112.83 and a 52 week high of $204.18.

Houlihan Lokey (NYSE:HLI) last posted its earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share (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 the consensus estimate of $602.38 million. Houlihan Lokey had a net margin of 16.10% and a return on equity of 20.20%. Houlihan Lokey’s revenue was down 15.6% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.14 EPS. As a group, sell-side analysts anticipate that Houlihan Lokey will post 6.91 earnings per share for the current year.

Houlihan Lokey Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Investors of record on Tuesday, September 1st were 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 was Tuesday, September 1st. Houlihan Lokey’s payout ratio is currently 47.06%.

Insider Activity

In related news, General Counsel Christopher M. Crain sold 1,000 shares of the stock in a transaction dated Thursday, September 10th. The shares were sold at an average price of $140.15, for a total value of $140,150.00. Following the completion of the transaction, the general counsel owned 1,000 shares of the company’s stock, valued at approximately $140,150. This trade represents a 50.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 22.53% of the stock is owned by company insiders.

Institutional Trading of Houlihan Lokey

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HLI. Krilogy Financial LLC grew its stake in shares of Houlihan Lokey by 15.3% during the 3rd quarter. Krilogy Financial LLC now owns 4,233 shares of the financial services provider’s stock worth $552,000 after purchasing an additional 563 shares during the period. Salvus Wealth Management LLC acquired a new position in shares of Houlihan Lokey in the 3rd quarter valued at $2,334,000. Wedmont Private Capital acquired a new position in shares of Houlihan Lokey in the 3rd quarter valued at $252,000. Diversified Management Inc. acquired a new position in shares of Houlihan Lokey in the 3rd quarter valued at $2,294,000. Finally, GAMMA Investing LLC boosted its holdings in Houlihan Lokey by 53.1% during the third quarter. GAMMA Investing LLC now owns 12,464 shares of the financial services provider’s stock worth $1,575,000 after buying an additional 4,324 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 is a global investment bank that provides financial advisory services to corporations, institutions, governments and other organizations. The firm focuses on complex strategic, financial and restructuring matters and is known for its independent advisory model.

Its principal businesses include corporate finance, financial restructuring, and financial and valuation advisory. Services include mergers and acquisitions advice, capital-raising and other strategic transactions, restructuring and liability management, fairness opinions, solvency analysis, financial reporting valuations, and transaction opinions.

Founded in 1972, Houlihan Lokey serves clients through offices across North America, Europe, the Asia-Pacific region and the Middle East.