Houlihan Lokey (HLI) | News Based Sentiment Analysis

• On July 29, 2025, Houlihan Lokey reported a strong fiscal Q1 2026, exceeding expectations with EPS of $2.14, a $0.45 beat, and revenue of $605.35 million, surpassing estimates by $32.09 million. This positive surprise signaled robust performance and potential for continued growth, setting a positive tone for the rest of the year.
• Following the impressive Q1 results on July 29, 2025, Morgan Stanley reaffirmed a positive outlook, maintaining an "Overweight" rating for HLI on September 8, 2025, and increasing the price target by 10.94% to $213.00. This demonstrates continued confidence in the company's future prospects.
• Houlihan Lokey is strategically expanding its presence in Europe, making key hires throughout September 2025 to bolster its Capital Solutions Group and Financial Sponsors coverage in the DACH region. On September 1st, Sandro Galfetti joined, and on September 8th, Martin Rezaie came on board, indicating a commitment to growth in the EMEA market.
• Institutional investor activity has been varied. On September 2nd, 2025, the General Counsel engaged in both selling and acquiring shares at $196.22, while NewEdge Advisors LLC increased their holdings by 9.7% between September 10-11, 2025, owning $4.66 million worth of shares. This mixed activity suggests ongoing evaluation of the stock by different investment strategies.
• A quarterly dividend of $0.60 per share was announced on September 2, 2025, payable on September 15, 2025, representing an annualized yield of 1.2-1.3%. This demonstrates a commitment to returning value to shareholders and provides a steady income stream for investors.
• On September 11, 2025, ten analysts maintained a "Buy" consensus rating for HLI, with 40% recommending a "Strong Buy" and 40% a "Buy", and an average 1-year price target of $138.70, which was unchanged from the current stock price. This indicates a generally positive, though cautious, outlook from the analyst community.
• Houlihan Lokey’s stock hit a new 1-year high on September 13, 2025, and its Relative Strength Rating jumped to 82 on September 11, 2025. This positive momentum suggests strong investor demand and outperformance relative to the broader market.
• Several firms increased their positions in Houlihan Lokey during September 2025: Geneos Wealth Management Inc. increased its position on September 13, 2025, United Services Automobile Association bought 3,438 shares on September 12, 2025, and Amundi acquired 50,847 shares on September 12, 2025, signaling growing institutional confidence.

The Investment Story: Houlihan Lokey continued to demonstrate strong financial performance and strategic growth throughout September 2025, particularly through its expansion in the European market and positive institutional investor activity. The combination of robust earnings, positive analyst ratings, and shareholder returns paints a positive picture for the company's trajectory.

What It Means for Investors: The strong earnings and positive analyst ratings suggest potential for continued stock appreciation. The strategic expansion into Europe could unlock new revenue streams, and the increased institutional investment indicates growing confidence in the company's long-term prospects. The dividend provides a steady income stream.

Looking Ahead: Investors should closely monitor the company's performance in the European market and track any further shifts in institutional ownership. Continued earnings growth and successful European expansion will be key indicators.

The Bottom Line: Houlihan Lokey presents a compelling investment opportunity, driven by strong financial results, strategic expansion, and a commitment to shareholder value. While some investor uncertainty exists, the company's proactive approach positions it favorably for the future.