Zacks Research Downgrades Houlihan Lokey (NYSE:HLI) to Strong Sell

Houlihan Lokey (NYSE:HLI) was downgraded by Zacks Research from a “hold” rating to a “strong sell” rating in a report issued on Wednesday,Zacks.com reports.

A number of other research analysts have also commented on the stock. Weiss Ratings lowered shares of Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, April 21st. Morgan Stanley cut their target price on Houlihan Lokey from $205.00 to $193.00 and set an “overweight” rating for the company in a research note on Thursday, April 9th. UBS Group set a $160.00 target price on Houlihan Lokey in a research note on Thursday, May 7th. The Goldman Sachs Group cut their target price on Houlihan Lokey from $210.00 to $184.00 and set a “buy” rating for the company in a research note on Wednesday, April 1st. Finally, Keefe, Bruyette & Woods cut their target price on Houlihan Lokey from $177.00 to $172.00 and set an “outperform” rating for the company in a research note on Thursday, May 7th. Five analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $191.29.

Houlihan Lokey Stock Performance

Shares of HLI opened at $150.89 on Wednesday. The company has a 50-day simple moving average of $149.13 and a 200-day simple moving average of $167.28. The firm has a market capitalization of $10.53 billion, a P/E ratio of 24.26, a P/E/G ratio of 1.17 and a beta of 0.99. Houlihan Lokey has a 52 week low of $134.41 and a 52 week high of $211.78.

Houlihan Lokey (NYSE:HLI) last announced its quarterly earnings data on Wednesday, May 6th. The financial services provider reported $1.63 EPS for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.16). The company had revenue of $635.64 million for the quarter, compared to analyst estimates of $679.22 million. Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The firm’s quarterly revenue was down 4.6% on a year-over-year basis. During the same period in the prior year, the company posted $1.96 EPS. As a group, equities analysts forecast that Houlihan Lokey will post 8.54 earnings per share for the current year.

Insider Transactions at Houlihan Lokey

In other Houlihan Lokey news, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction on Wednesday, April 1st. The stock was 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 directly owned 500 shares in the company, valued at $71,700. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 22.83% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the company. Westside Investment Management Inc. raised its position in Houlihan Lokey by 64.4% in the 3rd quarter. Westside Investment Management Inc. now owns 148 shares of the financial services provider’s stock valued at $30,000 after purchasing an additional 58 shares during the last quarter. Root Financial Partners LLC bought a new position in Houlihan Lokey in the 3rd quarter valued at $31,000. Flagship Harbor Advisors LLC acquired a new stake in shares of Houlihan Lokey in the fourth quarter valued at $26,000. Oakworth Capital Inc. acquired a new stake in shares of Houlihan Lokey in the fourth quarter valued at $29,000. Finally, Core Wealth Advisors LLC acquired a new stake in shares of Houlihan Lokey in the fourth quarter valued at $32,000. Institutional investors own 78.07% of the company’s stock.

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.