Zacks Investment Research Downgrades Houlihan Lokey (HLI) to Hold

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Zacks Investment Research lowered shares of Houlihan Lokey (NYSE:HLI) from a buy rating to a hold rating in a research report sent to investors on Tuesday morning, 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 upgraded Houlihan Lokey from a neutral rating to a buy rating and boosted their price objective for the company from $44.00 to $52.00 in a report 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 price target of $51.86.

NYSE:HLI opened at $46.89 on Tuesday. Houlihan Lokey has a 52 week low of $34.31 and a 52 week high of $53.20. The company has a current ratio of 0.95, a quick ratio of 0.95 and a debt-to-equity ratio of 0.01. The firm has a market capitalization of $3.11 billion, a price-to-earnings ratio of 16.34, a price-to-earnings-growth ratio of 1.26 and a beta of 1.03.

Houlihan Lokey (NYSE:HLI) last posted its earnings results on Wednesday, May 8th. The financial services provider reported $0.86 EPS for the quarter, beating 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 for the quarter, compared to the consensus estimate of $266.26 million. During the same quarter in the previous year, the business earned $0.65 earnings per share. The company’s revenue for the quarter was up 19.0% on a year-over-year basis. On average, research analysts predict that Houlihan Lokey will post 2.99 EPS for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 14th. Investors of record on Monday, June 3rd will be issued a $0.31 dividend. This represents a $1.24 annualized dividend and a dividend yield of 2.64%. The ex-dividend date is Friday, May 31st. This is an increase from Houlihan Lokey’s previous quarterly dividend of $0.27. Houlihan Lokey’s payout ratio is currently 37.63%.

Several hedge funds have recently bought and sold shares of the stock. ORIX Corp USA raised its holdings 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 buying an additional 3,500,000 shares during the period. Vanguard Group Inc. increased its holdings in Houlihan Lokey by 1.7% during the 3rd quarter. Vanguard Group Inc. now owns 3,086,510 shares of the financial services provider’s stock worth $138,677,000 after purchasing an additional 53,062 shares during the period. BlackRock Inc. increased its holdings in Houlihan Lokey by 1.5% during the 4th quarter. BlackRock Inc. now owns 2,398,424 shares of the financial services provider’s stock worth $88,262,000 after purchasing an additional 34,926 shares during the period. Kayne Anderson Rudnick Investment Management LLC increased its holdings in Houlihan Lokey by 20.4% during the 1st quarter. Kayne Anderson Rudnick Investment Management LLC now owns 2,231,085 shares of the financial services provider’s stock worth $102,296,000 after purchasing an additional 377,933 shares during the period. Finally, Goldman Sachs Group Inc. increased its holdings in Houlihan Lokey by 11.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,021,514 shares of the financial services provider’s stock worth $46,836,000 after purchasing an additional 107,063 shares during the period. Hedge funds and other institutional investors own 53.08% of the company’s stock.

Houlihan Lokey Company Profile

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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