Morgan Stanley Has Lowered Expectations for Houlihan Lokey (NYSE:HLI) Stock Price

Houlihan Lokey (NYSE:HLI) had its price objective dropped by analysts at Morgan Stanley from $187.00 to $177.00 in a report issued on Thursday,Benzinga reports. The firm presently has an “overweight” rating on the financial services provider’s stock. Morgan Stanley’s target price suggests a potential upside of 40.74% from the stock’s previous close.

Other research analysts also recently issued research reports about the stock. UBS Group boosted their target price on shares of Houlihan Lokey from $160.00 to $161.00 and gave the company a “neutral” rating in a research report on Wednesday, July 8th. Wolfe Research upgraded Houlihan Lokey from an “underperform” rating to a “peer perform” rating in a research note on Thursday, July 9th. Zacks Research raised shares of Houlihan Lokey from a “strong sell” rating to a “hold” rating in a report on Thursday, June 11th. Weiss Ratings reiterated a “hold (c)” rating on shares of Houlihan Lokey in a research report on Friday, July 17th. Finally, Keefe, Bruyette & Woods dropped their price target on Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating for the company in a research note on Thursday. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat.com, Houlihan Lokey currently has a consensus rating of “Moderate Buy” and an average price target of $176.38.

Houlihan Lokey Price Performance

NYSE HLI traded down $13.31 on Thursday, reaching $125.77. The stock had a trading volume of 2,060,691 shares, compared to its average volume of 685,877. The firm has a fifty day moving average of $140.38 and a two-hundred day moving average of $152.70. The company has a market cap of $8.69 billion, a P/E ratio of 20.22, a price-to-earnings-growth ratio of 1.23 and a beta of 0.95. Houlihan Lokey has a 1-year low of $112.83 and a 1-year high of $211.78.

Houlihan Lokey (NYSE:HLI) last posted its quarterly 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 firm 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 22.88% and a net margin of 16.26%.The business’s revenue was down 15.6% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.14 EPS. Research analysts predict that Houlihan Lokey will post 7.91 EPS for the current fiscal year.

Insider Buying and Selling

In other Houlihan Lokey news, Chairman Scott L. Beiser sold 6,265 shares of the firm’s stock in a transaction on Thursday, May 21st. The stock was sold at an average price of $150.26, for a total transaction of $941,378.90. Following the completion of the transaction, 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 sale was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 22.83% of the company’s stock.

Institutional Trading of Houlihan Lokey

Institutional investors have recently bought and sold shares of the company. Flagship Harbor Advisors LLC bought a new stake in shares of Houlihan Lokey during the fourth quarter valued at approximately $26,000. Oakworth Capital Inc. bought a new stake in shares of Houlihan Lokey in the fourth quarter worth $29,000. Core Wealth Advisors LLC bought a new stake in Houlihan Lokey during the fourth quarter valued at approximately $32,000. Eurizon Capital SGR S.p.A. purchased a new stake in Houlihan Lokey in the 4th quarter worth approximately $33,000. Finally, Annis Gardner Whiting Capital Advisors LLC increased its stake in Houlihan Lokey by 103.4% in the 1st quarter. Annis Gardner Whiting Capital Advisors LLC now owns 236 shares of the financial services provider’s stock worth $34,000 after buying an additional 120 shares in the last quarter. 78.07% of the stock is owned by hedge funds and other institutional investors.

More Houlihan Lokey News

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Keefe, Bruyette & Woods maintained an “outperform” rating on HLI and sees potential upside from current levels, although it lowered its price target to $153 from $160. Benzinga analyst price-target update
• Positive Sentiment: Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable September 15 to shareholders of record as of September 1. The dividend implies an annualized yield of approximately 2.3%, providing ongoing income support for investors.
• Neutral Sentiment: Management’s first-quarter fiscal 2027 earnings call and results release provide additional detail on the quarter’s performance and outlook. Houlihan Lokey Reports First Quarter Fiscal 2027 Financial Results Houlihan Lokey Q1 2027 Earnings Call Transcript
• Negative Sentiment: HLI reported quarterly EPS of $1.35, well below the $1.64 analyst consensus and down from $2.14 a year earlier. Houlihan Lokey misses first-quarter earnings and revenue estimates
• Negative Sentiment: Revenue was $511 million, versus the $602.38 million consensus estimate, and declined 15.6% year over year. The substantial top-line shortfall and earnings deterioration are the primary reasons investors are selling the stock.

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.