Houlihan Lokey, Inc. $HLI Stake Cut by Capital International Investors

Capital International Investors cut its position in shares of Houlihan Lokey, Inc. (NYSE:HLI) by 45.1% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 313,232 shares of the financial services provider’s stock after selling 257,672 shares during the period. Capital International Investors’ holdings in Houlihan Lokey were worth $54,562,000 as of its most recent SEC filing.

Several other large investors have also made changes to their positions in HLI. Norges Bank bought a new stake in shares of Houlihan Lokey in the 4th quarter valued at approximately $115,478,000. Qube Research & Technologies Ltd grew its stake in shares of Houlihan Lokey by 153.8% in the 2nd quarter. Qube Research & Technologies Ltd now owns 274,387 shares of the financial services provider’s stock valued at $49,376,000 after buying an additional 166,285 shares in the last quarter. Capital Research Global Investors grew its stake in shares of Houlihan Lokey by 19.7% in the 3rd quarter. Capital Research Global Investors now owns 956,441 shares of the financial services provider’s stock valued at $196,376,000 after buying an additional 157,605 shares in the last quarter. Caisse de depot et placement du Quebec grew its stake in shares of Houlihan Lokey by 411.1% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 170,617 shares of the financial services provider’s stock valued at $35,031,000 after buying an additional 137,237 shares in the last quarter. Finally, Millennium Management LLC bought a new stake in shares of Houlihan Lokey in the 1st quarter valued at approximately $18,964,000. Institutional investors own 78.07% of the company’s stock.

Houlihan Lokey Stock Down 1.7%

Shares of NYSE:HLI opened at $136.86 on Tuesday. The business has a 50 day moving average price of $149.66 and a 200 day moving average price of $162.62. Houlihan Lokey, Inc. has a twelve month low of $134.41 and a twelve month high of $211.78. The company has a market cap of $9.45 billion, a price-to-earnings ratio of 22.00, a PEG ratio of 1.08 and a beta of 0.95.

Houlihan Lokey (NYSE:HLI) last announced its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share for the quarter, missing the consensus estimate of $1.79 by ($0.16). Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The business had revenue of $635.64 million for the quarter, compared to the consensus estimate of $679.22 million. During the same quarter in the previous year, the company earned $1.96 EPS. Houlihan Lokey’s revenue for the quarter was down 4.6% compared to the same quarter last year. Analysts anticipate that Houlihan Lokey, Inc. will post 8.54 EPS for the current year.

Houlihan Lokey Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Investors of record on Monday, June 1st will be paid a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 2.0%. The ex-dividend date is Monday, June 1st. This is a positive change from Houlihan Lokey’s previous quarterly dividend of $0.60. Houlihan Lokey’s dividend payout ratio is currently 45.02%.

Analysts Set New Price Targets

Several research firms have recently issued reports on HLI. The Goldman Sachs Group decreased their price target 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. UBS Group set a $160.00 target price on Houlihan Lokey in a report on Thursday, May 7th. Keefe, Bruyette & Woods reduced their target price on Houlihan Lokey from $177.00 to $172.00 and set an “outperform” rating for the company in a report on Thursday, May 7th. Morgan Stanley reduced their target price on Houlihan Lokey from $205.00 to $193.00 and set an “overweight” rating for the company in a report on Thursday, April 9th. Finally, Weiss Ratings lowered 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, three have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $191.29.

Insider Activity at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the stock in a transaction that occurred 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 sale, the chairman owned 6,265 shares in the company, valued at $941,378.90. This represents a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total value of $71,700.00. Following the sale, the general counsel owned 500 shares of the company’s stock, valued at approximately $71,700. The trade was a 50.00% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.83% of the stock is owned by corporate insiders.

Houlihan Lokey Profile

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.