Houlihan Lokey (NYSE:HLI) Shares Gap Up – Time to Buy?

Houlihan Lokey, Inc. (NYSE:HLI) shares gapped up prior to trading on Thursday . The stock had previously closed at $136.93, but opened at $142.86. Houlihan Lokey shares last traded at $141.2990, with a volume of 21,447 shares changing hands.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Weiss Ratings downgraded Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, April 21st. US Capital Advisors set a $187.00 target price on Houlihan Lokey 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. The Goldman Sachs Group set a $164.00 price target on shares of Houlihan Lokey in a research note on Friday, July 10th. Finally, Morgan Stanley decreased their price target on shares of Houlihan Lokey from $193.00 to $187.00 and set an “overweight” rating on the stock in a report on Thursday, July 9th. Five investment analysts have rated the stock with a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $180.50.

Houlihan Lokey Stock Performance

The company has a market cap of $9.68 billion, a price-to-earnings ratio of 22.53, a P/E/G ratio of 1.22 and a beta of 0.95. The company has a fifty day moving average of $141.92 and a two-hundred day moving average of $155.04.

Houlihan Lokey (NYSE:HLI) last issued its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.16). The firm had revenue of $635.64 million during the quarter, compared to analyst estimates of $679.22 million. Houlihan Lokey had a return on equity of 22.88% and a net margin of 16.26%.Houlihan Lokey’s revenue for the quarter was down 4.6% on a year-over-year basis. During the same period in the previous year, the company earned $1.96 EPS. Equities analysts expect that Houlihan Lokey, Inc. will post 7.91 EPS for the current fiscal year.

Houlihan Lokey Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 1st were paid a $0.70 dividend. This is an increase from Houlihan Lokey’s previous quarterly dividend of $0.60. This represents a $2.80 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, June 1st. Houlihan Lokey’s payout ratio is currently 45.02%.

Insider Transactions at Houlihan Lokey

In related news, Chairman Scott L. Beiser sold 6,265 shares of the firm’s stock in a transaction that occurred 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 transaction, the chairman owned 6,265 shares in the company, valued at $941,378.90. This trade represents a 50.00% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 22.83% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Houlihan Lokey

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Royal Bank of Canada raised its position in shares of Houlihan Lokey by 14.4% during the first quarter. Royal Bank of Canada now owns 49,584 shares of the financial services provider’s stock worth $8,008,000 after acquiring an additional 6,253 shares during the last quarter. AQR Capital Management LLC boosted its holdings in Houlihan Lokey by 50.0% in the first quarter. AQR Capital Management LLC now owns 29,654 shares of the financial services provider’s stock valued at $4,598,000 after acquiring an additional 9,891 shares during the last quarter. Millennium Management LLC acquired a new stake in Houlihan Lokey during the 1st quarter valued at approximately $18,964,000. Goldman Sachs Group Inc. raised its holdings in Houlihan Lokey by 5.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 415,743 shares of the financial services provider’s stock worth $67,143,000 after purchasing an additional 22,553 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership bought a new position in Houlihan Lokey during the 2nd quarter worth approximately $1,033,000. 78.07% of the stock is currently owned by institutional investors and hedge funds.

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.