Houlihan Lokey (HLI) Raised to Buy at Zacks Investment Research

Zacks Investment Research upgraded shares of Houlihan Lokey (NYSE:HLI) from a hold rating to a buy rating in a report released on Wednesday morning, Zacks.com reports. They currently have $53.00 target price on the financial services provider’s stock.

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 shares of Houlihan Lokey from a neutral rating to a buy rating and upped their price objective for the company from $44.00 to $52.00 in a report on Wednesday, April 3rd. Two investment analysts have rated the stock with a hold rating and six have given a buy rating to the company. The company currently has an average rating of Buy and a consensus price target of $51.86.

NYSE:HLI opened at $47.41 on Wednesday. Houlihan Lokey has a one year low of $34.31 and a one year high of $53.20. The firm has a market capitalization of $3.05 billion, a price-to-earnings ratio of 16.52, a P/E/G ratio of 1.26 and a beta of 1.03. The company has a debt-to-equity ratio of 0.01, a quick ratio of 0.95 and a current ratio of 0.95.

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

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 14th. Shareholders of record on Monday, June 3rd will be issued a $0.31 dividend. This is an increase from Houlihan Lokey’s previous quarterly dividend of $0.27. This represents a $1.24 annualized dividend and a dividend yield of 2.62%. The ex-dividend date is Friday, May 31st. Houlihan Lokey’s payout ratio is currently 37.63%.

Large investors have recently added to or reduced their stakes in the business. Advisory Services Network LLC boosted its position in shares of Houlihan Lokey by 253.2% in the fourth quarter. Advisory Services Network LLC now owns 1,939 shares of the financial services provider’s stock valued at $71,000 after acquiring an additional 1,390 shares during the period. Meeder Asset Management Inc. boosted its position in shares of Houlihan Lokey by 112.0% in the fourth quarter. Meeder Asset Management Inc. now owns 2,109 shares of the financial services provider’s stock valued at $78,000 after acquiring an additional 1,114 shares during the period. SEI Investments Co bought a new stake in shares of Houlihan Lokey in the first quarter valued at about $89,000. Group One Trading L.P. bought a new stake in shares of Houlihan Lokey in the fourth quarter valued at about $92,000. Finally, Private Capital Group LLC boosted its position in shares of Houlihan Lokey by 259.0% in the first quarter. Private Capital Group LLC now owns 2,014 shares of the financial services provider’s stock valued at $92,000 after acquiring an additional 1,453 shares during the period. Hedge funds and other institutional investors own 53.08% of the company’s stock.

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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