Morgan Stanley Cuts Houlihan Lokey (NYSE:HLI) Price Target to $177.00

Houlihan Lokey (NYSE:HLI) had its price target cut by Morgan Stanley from $187.00 to $177.00 in a report published on Thursday, MarketBeat.com reports. They currently have an overweight rating on the financial services provider’s stock.

A number of other research analysts have also issued reports on the stock. Keefe, Bruyette & Woods dropped their price objective on shares of Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating for the company in a report on Thursday. Weiss Ratings reissued a “hold (c)” rating on shares of Houlihan Lokey in a research note on Friday, July 17th. Wolfe Research upgraded Houlihan Lokey from an “underperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Bank of America assumed coverage on Houlihan Lokey in a research report on Friday, July 10th. They set a “buy” rating and a $164.00 target price for the company. Finally, Zacks Research raised Houlihan Lokey from a “strong sell” rating to a “hold” rating in a research note on Thursday, June 11th. Five research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $174.62.

Houlihan Lokey Trading Down 2.4%

HLI stock opened at $125.21 on Thursday. The stock has a market capitalization of $8.65 billion, a P/E ratio of 21.04, a price-to-earnings-growth ratio of 1.06 and a beta of 0.95. The firm has a 50-day moving average price of $139.40 and a 200-day moving average price of $152.13. Houlihan Lokey has a 12 month low of $112.83 and a 12 month high of $211.78.

Houlihan Lokey (NYSE:HLI) last issued its earnings results on Wednesday, July 29th. The financial services provider reported $1.35 earnings per share for the quarter, missing analysts’ consensus estimates of $1.64 by ($0.29). The company had revenue of $511.00 million during the quarter, compared to analyst estimates of $602.38 million. Houlihan Lokey had a net margin of 16.10% and a return on equity of 20.20%. The business’s quarterly revenue was down 15.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $2.14 EPS. As a group, equities analysts predict that Houlihan Lokey will post 7.55 EPS for the current fiscal year.

Houlihan Lokey Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.70 dividend. This represents a $2.80 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date is Tuesday, September 1st. Houlihan Lokey’s dividend payout ratio (DPR) is presently 47.06%.

Insiders Place Their Bets

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

Hedge Funds Weigh In On Houlihan Lokey

A number of large investors have recently modified their holdings of HLI. Resources Management Corp CT ADV increased its stake in Houlihan Lokey by 0.9% during the 2nd quarter. Resources Management Corp CT ADV now owns 5,845 shares of the financial services provider’s stock valued at $1,052,000 after purchasing an additional 55 shares in the last quarter. Huntington National Bank boosted its position in shares of Houlihan Lokey by 5.5% during the fourth quarter. Huntington National Bank now owns 1,156 shares of the financial services provider’s stock valued at $201,000 after buying an additional 60 shares during the last quarter. Moneta Group Investment Advisors LLC raised its position in Houlihan Lokey by 1.2% in the 4th quarter. Moneta Group Investment Advisors LLC now owns 5,267 shares of the financial services provider’s stock valued at $917,000 after buying an additional 61 shares during the last quarter. Northwestern Mutual Wealth Management Co. lifted its stake in Houlihan Lokey by 7.9% during the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider’s stock valued at $196,000 after acquiring an additional 70 shares in the last quarter. Finally, IFP Advisors Inc lifted its stake in Houlihan Lokey by 4.4% during the 4th quarter. IFP Advisors Inc now owns 1,694 shares of the financial services provider’s stock valued at $295,000 after acquiring an additional 72 shares in the last quarter. 78.07% of the stock is currently owned by institutional investors.

Trending Headlines about Houlihan Lokey

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 September 1. The dividend implies an annualized yield of approximately 2.2%, providing shareholder income.
• Positive Sentiment: Morgan Stanley maintained an “overweight” rating despite lowering its price target to $177 from $187, while Keefe, Bruyette & Woods retained an “outperform” rating and reduced its target to $153 from $160. Both targets remain substantially above the recent trading level, suggesting analysts expect a recovery.
• Neutral Sentiment: UBS lowered its price target to $147 from $161 and maintained a “neutral” rating. The revised target still indicates upside, but the cut reflects more cautious expectations for the company’s valuation or near-term performance. Houlihan Lokey Given New $147 Price Target at UBS Group
• Negative Sentiment: Fiscal Q1 earnings were well below expectations: adjusted EPS was $1.35 versus the $1.64 consensus, and revenue was $511 million versus $602.38 million expected. EPS also fell from $2.14 a year earlier, while revenue declined 15.6% year over year. The sizable earnings and revenue misses are the primary catalyst weighing on HLI. Houlihan Lokey Misses Q1 Earnings and Revenue Estimates

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.