Renaissance Group Acquires $34 Million Stake in Houlihan Lokey
Renaissance Group LLC has acquired a significant stake in Houlihan Lokey, Inc., purchasing 189,583 shares valued at approximately $34,115,000. This transaction was disclosed in the firm’s recent 13F filing with the Securities and Exchange Commission (SEC), highlighting the growing interest from institutional investors in the financial services sector.
The acquisition reflects a broader trend, as several hedge funds have adjusted their positions in Houlihan Lokey. For instance, Motco entered a new position worth $29,000 in the first quarter of the year. Additionally, Trust Co. of Toledo NA in Ohio and Brooklyn Investment Group also acquired new stakes valued at around $34,000 and $33,000, respectively. TCTC Holdings LLC increased its holdings by 103.5%, now owning 232 shares worth $37,000. Notably, Caitong International Asset Management Co. Ltd significantly boosted its stake by 3,714.3%, owning 267 shares valued at $43,000.
Institutional investors now hold 78.07% of Houlihan Lokey’s stock, indicating strong confidence in the firm’s market position.
Stock Performance and Dividends
As of Wednesday, Houlihan Lokey’s stock opened at $173.39. The firm has experienced a 1-year low of $137.99 and a high of $211.78. The fifty-day moving average stands at $194.39, while the two-hundred-day moving average is $188.32. Currently, the company has a market capitalization of $12.15 billion, a price-to-earnings ratio of 29.19, and a beta of 0.88.
Moreover, Houlihan Lokey has announced a quarterly dividend of $0.60 per share, set to be paid on December 15, 2023. Shareholders on record as of December 1, 2023 will be eligible for this payout, reflecting an annualized dividend of $2.40 and a dividend yield of 1.4%. The ex-dividend date is also December 1, 2023, and the company’s payout ratio is currently 38.71%.
Insider Transactions and Analyst Ratings
Recent insider trading has seen General Counsel Christopher M. Crain sell 500 shares in a transaction on September 2, 2023, at an average price of $196.22, totaling $98,110. Additionally, Chairman Paul Eric Siegert sold 40,000 shares at an average price of $199.95 on August 27, 2023, amounting to $7,998,000. In the last quarter, insiders have sold a total of 47,311 shares valued at $9,477,040, representing 22.83% ownership by corporate insiders.
Wall Street analysts have recently provided mixed assessments of Houlihan Lokey. Morgan Stanley raised its target price from $192.00 to $213.00, recommending an “overweight” rating. In contrast, Deutsche Bank Aktiengesellschaft initiated coverage with a “hold” rating and a target price of $210.00. Meanwhile, other firms like Keefe, Bruyette & Woods and BMO Capital Markets have provided target prices of $226.00 and $230.00, respectively.
Overall, Houlihan Lokey enjoys a consensus rating of “Moderate Buy” with a target price averaging $212.43, according to data from MarketBeat.com.
As Houlihan Lokey continues to attract attention from institutional investors and analysts, its performance will be closely monitored as it navigates the complexities of the financial services market.
