Hamilton Lane (NASDAQ:HLNE) Shares Gap Down – Should You Sell?

Hamilton Lane Inc. (NASDAQ:HLNE)’s stock price gapped down prior to trading on Wednesday . The stock had previously closed at $84.86, but opened at $80.41. Hamilton Lane shares last traded at $78.72, with a volume of 276,298 shares.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the company. BMO Capital Markets cut their price objective on Hamilton Lane from $108.00 to $102.00 and set an “outperform” rating for the company in a research report on Friday, May 22nd. Oppenheimer increased their price objective on Hamilton Lane from $171.00 to $179.00 and gave the stock an “outperform” rating in a research report on Friday, May 22nd. UBS Group cut their price objective on Hamilton Lane from $184.00 to $150.00 and set a “buy” rating for the company in a research report on Friday, February 20th. Morgan Stanley cut their price objective on Hamilton Lane from $159.00 to $141.00 and set an “equal weight” rating for the company in a research report on Tuesday, April 21st. Finally, Zacks Research cut Hamilton Lane from a “strong-buy” rating to a “hold” rating in a research report on Monday, April 6th. Six research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $150.00.

Hamilton Lane Stock Up 2.3%

The company has a market cap of $4.59 billion, a price-to-earnings ratio of 13.99 and a beta of 1.14. The company has a fifty day simple moving average of $93.14 and a two-hundred day simple moving average of $114.97.

Hamilton Lane (NASDAQ:HLNE) last posted its earnings results on Thursday, May 21st. The company reported $1.49 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.06. The company had revenue of $193.57 million for the quarter, compared to analyst estimates of $203.05 million. Hamilton Lane had a return on equity of 25.98% and a net margin of 32.83%.Hamilton Lane’s revenue was down 2.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.21 earnings per share. On average, research analysts predict that Hamilton Lane Inc. will post 6.33 EPS for the current year.

Hamilton Lane Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, July 7th. Shareholders of record on Thursday, June 18th will be issued a $0.60 dividend. This represents a $2.40 annualized dividend and a yield of 2.9%. This is a positive change from Hamilton Lane’s previous quarterly dividend of $0.54. The ex-dividend date of this dividend is Thursday, June 18th. Hamilton Lane’s dividend payout ratio is currently 40.61%.

Hamilton Lane announced that its board has approved a share repurchase plan on Thursday, May 21st that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to buy up to 2% of its shares through open market purchases. Shares buyback plans are typically an indication that the company’s leadership believes its shares are undervalued.

Insider Activity at Hamilton Lane

In related news, Chairman Hartley R. Rogers acquired 466 shares of the firm’s stock in a transaction that occurred on Wednesday, May 27th. The shares were acquired at an average price of $92.76 per share, with a total value of $43,226.16. Following the completion of the purchase, the chairman directly owned 55,466 shares in the company, valued at approximately $5,145,026.16. The trade was a 0.85% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 22.21% of the stock is currently owned by insiders.

Institutional Trading of Hamilton Lane

Hedge funds have recently bought and sold shares of the company. Quarry LP boosted its stake in Hamilton Lane by 2,557.1% in the 3rd quarter. Quarry LP now owns 186 shares of the company’s stock worth $25,000 after buying an additional 179 shares during the last quarter. Advisory Services Network LLC acquired a new position in shares of Hamilton Lane in the 3rd quarter valued at about $26,000. Cornerstone Planning Group LLC lifted its stake in shares of Hamilton Lane by 347.7% in the 3rd quarter. Cornerstone Planning Group LLC now owns 197 shares of the company’s stock valued at $27,000 after purchasing an additional 153 shares in the last quarter. Hantz Financial Services Inc. lifted its stake in shares of Hamilton Lane by 80.5% in the 3rd quarter. Hantz Financial Services Inc. now owns 213 shares of the company’s stock valued at $29,000 after purchasing an additional 95 shares in the last quarter. Finally, Parallel Advisors LLC boosted its holdings in Hamilton Lane by 81.2% in the 4th quarter. Parallel Advisors LLC now owns 241 shares of the company’s stock worth $32,000 after acquiring an additional 108 shares during the period. Institutional investors and hedge funds own 97.40% of the company’s stock.

About Hamilton Lane

Hamilton Lane is a global private markets investment management firm specializing in the full spectrum of private equity and credit strategies. The company partners with institutional investors and wealth managers to design, implement and manage customized portfolios in primary fund investing, secondary market transactions and direct co-investment opportunities. By combining investment selection, portfolio construction and ongoing monitoring, Hamilton Lane seeks to optimize risk-adjusted returns across diverse private markets exposures.

Founded in 1991, Hamilton Lane has developed a track record of investment and advisory services in private markets.