Houlihan Lokey (NYSE:HLI) Hits New 12-Month Low Following Weak Earnings

Houlihan Lokey, Inc. (NYSE:HLI)’s share price hit a new 52-week low on Thursday following a weaker than expected earnings announcement. The stock traded as low as $112.83 and last traded at $118.0130, with a volume of 164851 shares changing hands. The stock had previously closed at $139.08.

The financial services provider reported $1.35 EPS for the quarter, missing the consensus estimate of $1.64 by ($0.29). The business had revenue of $511.00 million during the quarter, compared to analysts’ expectations of $602.38 million. Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The firm’s revenue for the quarter was down 15.6% compared to the same quarter last year. During the same quarter last year, the company earned $2.14 EPS.

Houlihan Lokey Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be paid a $0.70 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $2.80 dividend on an annualized basis and a yield of 2.4%. Houlihan Lokey’s payout ratio is currently 45.02%.

More Houlihan Lokey News

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

• Positive Sentiment: Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable September 15 to shareholders of record on September 1. The payment implies an annualized dividend of approximately $2.80 and a yield of about 2.3%, which may appeal to income-focused investors.
• Positive Sentiment: Keefe, Bruyette & Woods maintained an “outperform” rating, indicating confidence in the company’s longer-term prospects. Although the firm reduced its price target from $160 to $153, the revised target still implies substantial upside from recent trading levels. Benzinga
• Neutral Sentiment: Management’s earnings call and related reports provide additional details on fiscal first-quarter performance and the outlook for Houlihan Lokey’s advisory businesses. Houlihan Lokey Reports First Quarter Fiscal 2027 Financial Results Q1 2027 Earnings Call Transcript
• Negative Sentiment: Houlihan Lokey reported adjusted earnings of $1.35 per share, missing the $1.64 consensus estimate and declining from $2.14 a year earlier. Revenue was $511 million, well below the $602.38 million analyst estimate and down 15.6% year over year. The sizable earnings and sales misses are the primary reasons the stock has weakened, raising concerns about near-term deal activity and profitability. Houlihan Lokey Misses Q1 Earnings and Revenue Estimates

Analyst Ratings Changes

HLI has been the topic of a number of research reports. Keefe, Bruyette & Woods lowered their price target on Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating on the stock in a report on Thursday. UBS Group upped their price objective on Houlihan Lokey from $160.00 to $161.00 and gave the company a “neutral” rating in a research note on Wednesday, July 8th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Houlihan Lokey in a research report on Friday, July 17th. Morgan Stanley lowered their target price on Houlihan Lokey from $193.00 to $187.00 and set an “overweight” rating on the stock in a research note on Thursday, July 9th. Finally, Zacks Research raised Houlihan Lokey from a “strong sell” rating to a “hold” rating in a report on Thursday, June 11th. Five investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $177.62.

Insider Activity at Houlihan Lokey

In other news, Chairman Scott L. Beiser sold 6,265 shares of the firm’s stock in a transaction on Thursday, May 21st. The shares were sold at an average price of $150.26, for a total value of $941,378.90. Following the completion of the sale, the chairman owned 6,265 shares in the company, valued at approximately $941,378.90. This trade represents a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 22.83% of the company’s stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Fulton Bank N.A. increased its position in Houlihan Lokey by 5.0% during the 2nd quarter. Fulton Bank N.A. now owns 5,696 shares of the financial services provider’s stock worth $764,000 after purchasing an additional 271 shares during the period. Franklin Parlapiano Turner & Welch LLC lifted its holdings in shares of Houlihan Lokey by 1.0% in the 2nd quarter. Franklin Parlapiano Turner & Welch LLC now owns 53,484 shares of the financial services provider’s stock valued at $7,174,000 after buying an additional 520 shares during the period. Assenagon Asset Management S.A. boosted its stake in shares of Houlihan Lokey by 7.5% in the second quarter. Assenagon Asset Management S.A. now owns 126,476 shares of the financial services provider’s stock valued at $16,964,000 after buying an additional 8,871 shares in the last quarter. GAMMA Investing LLC boosted its stake in shares of Houlihan Lokey by 24.1% in the second quarter. GAMMA Investing LLC now owns 8,140 shares of the financial services provider’s stock valued at $1,092,000 after buying an additional 1,581 shares in the last quarter. Finally, Harbor Investment Advisory LLC acquired a new position in Houlihan Lokey during the second quarter worth $55,000. 78.07% of the stock is owned by hedge funds and other institutional investors.

Houlihan Lokey Stock Down 15.2%

The stock has a fifty day moving average of $140.38 and a two-hundred day moving average of $152.70. The stock has a market cap of $8.15 billion, a price-to-earnings ratio of 18.96, a price-to-earnings-growth ratio of 1.23 and a beta of 0.95.

Houlihan Lokey Company 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.