Houlihan Lokey (HLI) Downgraded by Zacks Investment Research

Houlihan Lokey (NYSE:HLI) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Tuesday, Zacks.com reports.

According to Zacks, “Houlihan Lokey, Inc. is an investment bank which focuses on mergers and acquisitions, financings, financial restructurings and financial advisory services. The Company’s operating segments consist of Corporate Finance, encompassing M&A and capital markets advisory; Financial Restructuring both out-of-court and in formal bankruptcy or insolvency proceedings; Financial Advisory Services, including financial opinions and a variety of valuation services; and Strategic Consulting, which advises in the areas of strategy development, operations, and performance improvement. It operates primarily in the United States, Europe, Asia and Australia. Houlihan Lokey, Inc. is headquartered in LOS ANGELES, United States. “

Separately, Goldman Sachs Group raised Houlihan Lokey from a “neutral” rating to a “buy” rating and raised their price target for the stock from $44.00 to $52.00 in a research note on Wednesday, April 3rd. Two equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. The company presently has an average rating of “Buy” and an average target price of $51.86.

HLI opened at $47.49 on Tuesday. Houlihan Lokey has a fifty-two week low of $34.31 and a fifty-two week high of $53.20. The company has a debt-to-equity ratio of 0.01, a current ratio of 0.95 and a quick ratio of 0.95. The stock has a market cap of $3.05 billion, a PE ratio of 16.55, a PEG ratio of 1.26 and a beta of 1.03.

Houlihan Lokey (NYSE:HLI) last posted its quarterly earnings results on Wednesday, May 8th. The financial services provider reported $0.86 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.69 by $0.17. Houlihan Lokey had a return on equity of 22.70% and a net margin of 14.67%. The company had revenue of $291.40 million during the quarter, compared to the consensus estimate of $266.26 million. During the same period last year, the business earned $0.65 EPS. The business’s quarterly revenue was up 19.0% on a year-over-year basis. On average, research analysts forecast that Houlihan Lokey will post 2.99 EPS for the current fiscal year.

Several hedge funds have recently modified their holdings of HLI. ORIX Corp USA raised its stake in shares of Houlihan Lokey by 574.0% in the 1st quarter. ORIX Corp USA now owns 4,109,721 shares of the financial services provider’s stock valued at $188,431,000 after acquiring an additional 3,500,000 shares in the last quarter. TimesSquare Capital Management LLC bought a new position in shares of Houlihan Lokey in the 1st quarter valued at approximately $18,187,000. Kayne Anderson Rudnick Investment Management LLC raised its stake in shares of Houlihan Lokey by 20.4% in the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,231,085 shares of the financial services provider’s stock valued at $102,296,000 after acquiring an additional 377,933 shares in the last quarter. H2O AM LLP bought a new position in shares of Houlihan Lokey in the 1st quarter valued at approximately $12,430,000. Finally, Van Berkom & Associates Inc. bought a new position in shares of Houlihan Lokey in the 1st quarter valued at approximately $12,052,000. 53.08% of the stock is currently owned by institutional investors and hedge funds.

About Houlihan Lokey

Houlihan Lokey, Inc, an investment banking company, provides merger and acquisition (M&A), financing, financial restructuring, and financial advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial Advisory Services. The Corporate Finance segment offers general financial advisory services; and advises public and private institutions on buy-side and sell-side transactions, leveraged loans, private mezzanine debt, high-yield debt, initial public offerings, follow-ons, convertibles, equity private placements, private equity, and liability management transactions, as well as financial sponsors on various transactions.

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