J. Lindsey Alley, the Chief Financial Officer of Houlihan Lokey, Inc. (NYSE:HLI), recently executed a significant stock sale. On November 7, 2024, Alley sold 12,500 shares of Class A common stock at an average price of $185.49 per share. This transaction amounted to a total value of approximately $2.32 million.
In addition to the sale, Alley also converted 12,500 shares of Class B common stock into Class A common stock, although this conversion did not involve any financial exchange. Following these transactions, Alley holds no direct shares of Class A common stock.
The shares sold were part of a series of open market transactions, with prices ranging from $184.40 to $186.38 per share. The CFO's actions were reported in a recent SEC filing, highlighting the ongoing management of equity holdings by company executives.
In other recent news, Houlihan Lokey reported a significant year-over-year increase in revenue and adjusted earnings per share in its Q2 earnings call for fiscal year 2025. The firm's revenues rose to $575 million, marking a 23% increase, while adjusted earnings per share grew by 32% to $1.46. The robust performance was attributed to a favorable M&A environment, new business activity in financial restructuring, and increased demand for market-neutral services.
Houlihan Lokey has been active in acquisitions, with three bolt-on acquisitions announced over the last twelve months, two of which have closed. These strategic acquisitions are expected to enhance the company's valuation and financial services offerings. Seaport Global Securities maintained a Neutral rating on Houlihan Lokey, citing an increase in FY2025E/FY2026E EPS and revenue growth across all businesses.
Despite a lack of visibility in the fee pipeline data for Houlihan Lokey, the current pipeline is reportedly the highest it has been since 2022, showing an increase of over 50% year-over-year. The firm is expected to compensate for any potential slowdown in restructuring through growth in refinancing activities, particularly in its debt advisory business. These are the recent developments that suggest Houlihan Lokey is well-positioned for continued growth in the coming quarters.
InvestingPro Insights
The recent stock sale by Houlihan Lokey's CFO J. Lindsey Alley comes at a time when the company's stock is performing exceptionally well. According to InvestingPro data, Houlihan Lokey has seen a remarkable 81.74% price total return over the past year, and is currently trading near its 52-week high, with the price at 98.19% of its highest point.
This strong performance is reflected in the company's financials. Houlihan Lokey boasts a market capitalization of $12.94 billion and has demonstrated solid revenue growth, with a 23.1% increase in quarterly revenue as of the most recent quarter. The company's profitability is also noteworthy, with a gross profit margin of 93.7% in the last twelve months.
InvestingPro Tips highlight that Houlihan Lokey has raised its dividend for 10 consecutive years, indicating a commitment to shareholder returns. Additionally, the company is trading at a high P/E ratio of 36.11, which suggests investors are willing to pay a premium for its shares, possibly due to growth expectations or the company's strong market position.
It's worth noting that InvestingPro offers 13 additional tips for Houlihan Lokey, providing investors with a more comprehensive analysis of the company's financial health and market position.
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