Hsbc Holdings PLC Lowers Stake in Houlihan Lokey, Inc. $HLI

Hsbc Holdings PLC cut its stake in Houlihan Lokey, Inc. (NYSE:HLI) by 28.1% during the fourth quarter, HoldingsChannel reports. The firm owned 25,676 shares of the financial services provider’s stock after selling 10,042 shares during the period. Hsbc Holdings PLC’s holdings in Houlihan Lokey were worth $4,481,000 at the end of the most recent quarter.

Several other institutional investors also recently added to or reduced their stakes in HLI. Caitong International Asset Management Co. Ltd purchased a new position in shares of Houlihan Lokey during the fourth quarter worth approximately $171,000. Sankala Group LLC bought a new stake in shares of Houlihan Lokey during the fourth quarter valued at approximately $169,000. Pacer Advisors Inc. boosted its holdings in shares of Houlihan Lokey by 11.5% in the fourth quarter. Pacer Advisors Inc. now owns 8,065 shares of the financial services provider’s stock valued at $1,405,000 after purchasing an additional 830 shares during the period. Virtu Financial LLC purchased a new stake in shares of Houlihan Lokey in the fourth quarter valued at approximately $863,000. Finally, Dorsey Wright & Associates boosted its holdings in shares of Houlihan Lokey by 4.7% in the fourth quarter. Dorsey Wright & Associates now owns 28,123 shares of the financial services provider’s stock valued at $4,901,000 after purchasing an additional 1,254 shares during the period. Hedge funds and other institutional investors own 78.07% of the company’s stock.

Houlihan Lokey Stock Up 1.8%

Shares of NYSE:HLI opened at $138.73 on Friday. The firm has a 50 day moving average of $147.62 and a 200 day moving average of $159.22. The company has a market capitalization of $9.58 billion, a price-to-earnings ratio of 22.30, a price-to-earnings-growth ratio of 1.08 and a beta of 0.95. Houlihan Lokey, Inc. has a 52 week low of $133.83 and a 52 week high of $211.78.

Houlihan Lokey (NYSE:HLI) last announced its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share (EPS) 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 company had revenue of $635.64 million for the quarter, compared to the consensus estimate of $679.22 million. During the same period last year, the business posted $1.96 EPS. The firm’s revenue was down 4.6% compared to the same quarter last year. On average, sell-side analysts expect that Houlihan Lokey, Inc. will post 8.54 EPS for the current year.

Houlihan Lokey Increases Dividend

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

Insider Activity

In related news, General Counsel Christopher M. Crain sold 500 shares of the business’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total transaction of $71,700.00. Following the completion of the transaction, the general counsel owned 500 shares in the company, valued at $71,700. The trade was a 50.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Chairman Scott L. Beiser sold 6,265 shares of the business’s 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 transaction, the chairman owned 6,265 shares of the company’s stock, valued at approximately $941,378.90. This trade represents a 50.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 22.83% of the company’s stock.

Wall Street Analyst Weigh In

Several research analysts have commented on HLI shares. Zacks Research upgraded Houlihan Lokey from a “strong sell” rating to a “hold” rating in a report on Thursday, June 11th. Weiss Ratings cut Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, April 21st. The Goldman Sachs Group dropped their price target on Houlihan Lokey from $210.00 to $184.00 and set a “buy” rating on the stock in a research report on Wednesday, April 1st. Morgan Stanley decreased their price objective 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, UBS Group set a $160.00 price objective on shares of Houlihan Lokey in a research note on Thursday, May 7th. Five analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $191.29.

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.