Despite Houlihan Lokey Inc. [HLI]’s great opportunity, the stock is a bit overvalued

In yesterday’s Wall Street session, Houlihan Lokey Inc. (NYSE:HLI) shares traded at $85.36, down -2.76% from the previous session.

8 analysts cover Houlihan Lokey Inc. (NYSE:HLI), according to research data. The consensus rating among analysts is ‘Hold’. As we calculate the median target price by taking the range between a high of $115.00 and a low of $78.00, we find $96.50. Given the previous closing price of $87.78, this indicates a potential upside of 9.93 percent. HLI stock price is now -10.10% away from the 50-day moving average and -2.20% away from the 200-day moving average. The market capitalization of the company currently stands at $6.01B.

The stock has received a hold rating from 5 analysts and a buy rating from 2. Brokers who have rated the stock have averaged $96.50 as their price target over the next twelve months.

With the price target reduced from $95 to $82, Morgan Stanley Upgraded its rating from Underweight to Equal-Weight for Houlihan Lokey Inc. (NYSE: HLI). On April 07, 2022, Piper Sandler Downgraded its previous ‘Neutral’ rating to ‘Underweight’ on the stock reducing its target price from $92 to quote $76, while ‘Goldman’ rates the stock as ‘Buy’.

In other news, GOLD IRWIN, EXECUTIVE CHAIRMAN sold 5,000 shares of the company’s stock on Nov 25. The stock was sold for $497,650 at an average price of $99.53. Upon completion of the transaction, the EXECUTIVE CHAIRMAN now directly owns 0 shares in the company, valued at $0.0. An SEC document containing details of the transaction can be found on the SEC’s website. On Nov 23, EXECUTIVE CHAIRMAN GOLD IRWIN sold 9,185 shares of the business’s stock. A total of $905,457 was realized by selling the stock at an average price of $98.58. Insiders disposed of 39,256 shares of company stock worth roughly $3.35 million over the past 1 year. A total of 0.12% of the company’s stock is owned by insiders.

There have been several recent changes in the stakes of large investors in HLI stock. A new stake in Houlihan Lokey Inc. shares was purchased by WELLINGTON MANAGEMENT GROUP LLP during the first quarter worth $25,794,000. BROOKFIELD CORP /ON/ invested $2,148,000 in shares of HLI during the first quarter. In the first quarter, JANE STREET GROUP, LLC acquired a new stake in Houlihan Lokey Inc. valued at approximately $1,152,000. EFG ASSET MANAGEMENT (NORTH AMERICA) CORP. acquired a new stake in HLI for approximately $1,085,000. BANK OF NOVA SCOTIA purchased a new stake in HLI valued at around $1,038,000 in the second quarter.

On Monday morning Houlihan Lokey Inc. (NYSE: HLI) stock kicked off with the opening price of $85.79. During the past 12 months, Houlihan Lokey Inc. has had a low of $74.18 and a high of $102.36. The fifty day moving average price for HLI is $94.95 and a two-hundred day moving average price translates $87.28 for the stock.

The latest earnings results from Houlihan Lokey Inc. (NYSE: HLI) was released for Dec, 2022. According to the Capital Markets Company, earnings per share came in at $1.14, missing analysts’ expectations of $1.15 by -0.01. This compares to $2.55 EPS in the same period last year. The net profit margin was 14.10% and return on equity was 17.80% for HLI. The company reported revenue of $456.5 million for the quarter, compared to $888.8 million a year earlier. Comparatively to last year’s same quarter, the company’s quarterly revenue fell -48.64 percent. For the current quarter, analysts expect HLI to generate $480.96M in revenue.

Moreover, the firm recently paid out its quarterly dividend on 03/15/2023. Investors who held shares on 03/02/2023 were paid a $0.53 dividend. On an annualized basis, this represents a $2.12 dividend and a 2.48% percent yield. There was an ex-dividend date of 03/01/2023 for this dividend. In terms of dividend payout ratio, HLI is presently at 49.40%.

Houlihan Lokey Inc.(HLI) Company Profile

Houlihan Lokey, Inc., an investment banking company, provides merger and acquisition (M&A), capital market, financial restructuring, and financial and valuation advisory services worldwide. It operates in three segments: Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory. 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 advise financial sponsors on various transactions. The Financial Restructuring segment advises debtors, creditors, and other parties-in-interest related to recapitalization/deleveraging transactions. It also provides a range of advisory services, including structuring, negotiation, and confirmation of plans of reorganization; structuring and analysis of exchange offers; corporate viability assessment; dispute resolution and expert testimony; and procuring debtor-in-possession financing. The Financial and Valuation Advisory segment offers valuations of various assets, such as companies, illiquid debt and equity securities, and intellectual property. It also provides fairness opinions in connection with M&A and other transactions, and solvency opinions in connection with corporate spin-offs and dividend recapitalizations; and other types of financial opinions. In addition, this segment offers dispute resolution services. It serves corporations, institutions, and governments. The company was incorporated in 1972 and is headquartered in Los Angeles, California with offices in the United States, Europe, the Middle East, and the Asia-Pacific region.