Houlihan Lokey, Inc. (HLI) Bundle
Who Invests in Houlihan Lokey, Inc. (HLI) and Why?
Who Invests in HLI and Why?
Key Investor Types
Investors in HLI comprise various categories, each with distinct characteristics:
- Retail Investors: Individual investors who buy and sell stocks for personal accounts. As of September 30, 2024, retail ownership accounted for approximately 20% of total shares outstanding.
- Institutional Investors: Large organizations such as pension funds, mutual funds, and insurance companies. Institutional ownership stood at about 75% as of the latest reports.
- Hedge Funds: These are pooled investment funds that employ different strategies to earn active returns. Hedge funds held roughly 5% of the total shares as of the end of Q3 2024.
Investment Motivations
Investors are attracted to HLI for several reasons:
- Growth Prospects: The company reported a revenue increase of 23% year-over-year for Q3 2024, reaching $575 million compared to $467 million in Q3 2023.
- Market Position: HLI has established itself as a leader in financial advisory services, particularly in corporate finance and restructuring, which are projected to grow.
- Dividends: The company paid dividends totaling $89.7 million in the first half of 2024, appealing to income-focused investors.
Investment Strategies
Different investor types employ various strategies when investing in HLI:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, capitalizing on the company’s steady growth and profitability.
- Short-Term Trading: Retail investors often engage in short-term trading, taking advantage of volatility in the stock price, which has seen fluctuations between $90 and $130 per share in 2024.
- Value Investing: Some hedge funds utilize value investing strategies, targeting undervalued stocks based on fundamental analysis.
Investor Profile Data Table
| Investor Type | Ownership Percentage | Investment Strategy | Key Motivations |
|---|---|---|---|
| Retail Investors | 20% | Short-Term Trading | Volatility, Quick Gains |
| Institutional Investors | 75% | Long-Term Holding | Growth, Stability |
| Hedge Funds | 5% | Value Investing | Undervalued Opportunities |
As of September 30, 2024, HLI has demonstrated robust financial performance, with net income reaching $182.5 million for the six months ended September 30, 2024, compared to $128.4 million for the same period in 2023, marking a 42% increase .
Institutional Ownership and Major Shareholders of Houlihan Lokey, Inc. (HLI)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the largest institutional investors in the company included:
| Institution Name | Shares Held | Percentage of Total Shares |
|---|---|---|
| Vanguard Group, Inc. | 6,320,897 | 11.8% |
| BlackRock, Inc. | 5,250,332 | 9.8% |
| SSGA Funds Management, Inc. | 2,850,000 | 5.3% |
| Wellington Management Group LLP | 2,500,000 | 4.7% |
| State Street Corporation | 2,200,000 | 4.1% |
Recent changes in ownership reflect that institutional investors have slightly increased their stakes in the company. For instance, Vanguard Group increased its holdings by approximately 1.2 million shares compared to the previous quarter. BlackRock also raised its position by 500,000 shares.
The role of institutional investors is significant in influencing the company’s stock price and strategic direction. Their collective investment decisions can create substantial buying or selling pressure on the stock. Moreover, these investors often engage in active discussions regarding corporate governance, pushing for strategic changes that can enhance shareholder value.
As of September 30, 2024, the company had a total of 53,403,939 shares outstanding, with institutional investors controlling approximately 46.7% of the total shares. This level of ownership indicates a strong institutional interest, which typically correlates with greater stock price stability and potential for long-term growth.
Key Investors and Their Influence on Houlihan Lokey, Inc. (HLI)
Key Investors and Their Impact on Stock
Notable Investors: As of September 30, 2024, significant institutional investors include The Vanguard Group, which holds approximately 10.5 million shares, representing about 15.7% of total shares outstanding. Another notable investor is BlackRock, Inc., with around 9.8 million shares, equating to 14.5% of shares. Additionally, the HL Voting Trust, comprising key insiders, holds 16.1 million shares of Class B common stock, representing 23.9% of total shares.
Investor Influence: The influence of these major investors is substantial. The Vanguard Group and BlackRock, as large institutional shareholders, have significant voting power in corporate governance matters. Their investment decisions can lead to increased stock volatility, particularly during earnings reports or strategic announcements. For instance, the presence of activist investors can push for changes in management or strategy, affecting operational efficiencies and potential stock price movements.
Recent Moves: Recently, there have been notable transactions involving these key investors. In the last quarter, the HL Voting Trust converted 1.2 million Class B shares into Class A shares, reflecting a shift in strategy to increase liquidity. Moreover, BlackRock has increased its stake by acquiring an additional 500,000 shares in the past six months. This move indicates confidence in the company's growth trajectory, particularly given the reported 23% revenue increase year-over-year, reaching $575 million for the three months ended September 30, 2024.
| Investor | Shares Held | Percentage of Total Shares | Recent Moves |
|---|---|---|---|
| The Vanguard Group | 10,500,000 | 15.7% | No recent changes reported |
| BlackRock, Inc. | 9,800,000 | 14.5% | Increased stake by 500,000 shares |
| HL Voting Trust | 16,100,000 | 23.9% | Converted 1.2 million Class B shares to Class A |
These movements highlight the dynamic nature of the investor landscape surrounding the company, which can significantly impact stock performance and corporate governance.
Market Impact and Investor Sentiment of Houlihan Lokey, Inc. (HLI)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, the sentiment among major shareholders toward the company is predominantly positive. This is reflected in the recent increase in stock prices and strong earnings reports.
Recent Market Reactions: The stock has shown resilience, with a 23% increase in revenues for the three months ended September 30, 2024, compared to the same period in 2023. The market reacted positively to the news of increased ownership by institutional investors, which has historically been a bullish signal for the stock.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Revenues | $574.96 million | $466.99 million | 23% |
| Net Income | $93.55 million | $67.03 million | 40% |
| Earnings per Share (Diluted) | $1.37 | $0.99 | 38% |
Analyst Perspectives: Analysts remain optimistic about future growth, citing the strong performance in the Corporate Finance segment, which reported revenues of $364.0 million for Q3 2024, up from $281.7 million in Q3 2023, a 29% increase. The segment's profit also increased by 21%, indicating operational efficiency and effective cost management.
Furthermore, the Financial Restructuring segment reported a remarkable 87% increase in segment profit for the same period, reflecting the company's ability to capitalize on favorable market conditions.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Segment Profit Change (%) |
|---|---|---|---|
| Corporate Finance | $364.0 million | $281.7 million | 21% |
| Financial Restructuring | $131.6 million | $114.7 million | 87% |
| Financial and Valuation Advisory | $79.4 million | $70.6 million | 12% |
Overall, the sentiment remains strong among institutional investors, with reports indicating that they have increased their holdings significantly in recent months. This trend aligns with the company's strategic initiatives aimed at enhancing shareholder value and driving growth in its advisory services.
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Resources:
- Houlihan Lokey, Inc. (HLI) Financial Statements – Access the full quarterly financial statements for Q2 2025 to get an in-depth view of Houlihan Lokey, Inc. (HLI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Houlihan Lokey, Inc. (HLI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.