Houlihan Lokey (NYSE:HLI) Hits New 1-Year Low Following Weak Earnings

Houlihan Lokey, Inc. (NYSE:HLI) shares hit a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $112.83 and last traded at $118.0130, with a volume of 164851 shares changing hands. The stock had previously closed at $139.08.

The financial services provider reported $1.35 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.64 by ($0.29). The company had revenue of $511.00 million during the quarter, compared to analysts’ expectations of $602.38 million. Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The business’s revenue for the quarter was down 15.6% compared to the same quarter last year. During the same quarter in the prior year, the business earned $2.14 EPS.

Houlihan Lokey Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 1st will be issued a $0.70 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $2.80 dividend on an annualized basis and a yield of 2.4%. Houlihan Lokey’s dividend payout ratio (DPR) is 45.02%.

Houlihan Lokey News Roundup

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable September 15 to shareholders of record on September 1. The payment implies an annualized dividend of approximately $2.80 and a yield of about 2.3%, which may appeal to income-focused investors.
• Positive Sentiment: Keefe, Bruyette & Woods maintained an “outperform” rating, indicating confidence in the company’s longer-term prospects. Although the firm reduced its price target from $160 to $153, the revised target still implies substantial upside from recent trading levels. Benzinga
• Neutral Sentiment: Management’s earnings call and related reports provide additional details on fiscal first-quarter performance and the outlook for Houlihan Lokey’s advisory businesses. Houlihan Lokey Reports First Quarter Fiscal 2027 Financial Results Q1 2027 Earnings Call Transcript
• Negative Sentiment: Houlihan Lokey reported adjusted earnings of $1.35 per share, missing the $1.64 consensus estimate and declining from $2.14 a year earlier. Revenue was $511 million, well below the $602.38 million analyst estimate and down 15.6% year over year. The sizable earnings and sales misses are the primary reasons the stock has weakened, raising concerns about near-term deal activity and profitability. Houlihan Lokey Misses Q1 Earnings and Revenue Estimates

Analyst Ratings Changes

Several brokerages have recently commented on HLI. The Goldman Sachs Group set a $148.00 price target on Houlihan Lokey in a research note on Thursday. Bank of America began coverage on Houlihan Lokey in a research report on Friday, July 10th. They set a “buy” rating and a $164.00 target price on the stock. Wolfe Research raised Houlihan Lokey from an “underperform” rating to a “peer perform” rating in a report on Thursday, July 9th. Weiss Ratings reissued a “hold (c)” rating on shares of Houlihan Lokey in a research note on Friday, July 17th. Finally, Keefe, Bruyette & Woods reduced their price target on shares of Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating on the stock in a report on Thursday. Five investment analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $177.62.

Insider Activity at Houlihan Lokey

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

Institutional Investors Weigh In On Houlihan Lokey

Several hedge funds have recently modified their holdings of HLI. Flagship Harbor Advisors LLC acquired a new position in shares of Houlihan Lokey in the fourth quarter valued at approximately $26,000. Oakworth Capital Inc. purchased a new stake in Houlihan Lokey in the 4th quarter worth approximately $29,000. Core Wealth Advisors LLC acquired a new position in Houlihan Lokey in the 4th quarter valued at $32,000. Eurizon Capital SGR S.p.A. acquired a new position in Houlihan Lokey in the 4th quarter valued at $33,000. Finally, Strategic Wealth Investment Group LLC purchased a new position in shares of Houlihan Lokey during the 2nd quarter worth $39,000. 78.07% of the stock is owned by institutional investors and hedge funds.

Houlihan Lokey Trading Down 15.2%

The business has a 50 day simple moving average of $140.38 and a two-hundred day simple moving average of $152.70. The company has a market cap of $8.15 billion, a PE ratio of 18.96, a price-to-earnings-growth ratio of 1.23 and a beta of 0.95.

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.