General Counsel Of Houlihan Lokey Makes $464K Sale

Christopher M Crain, General Counsel at Houlihan Lokey HLI, reported an insider sell on November 12, according to a new SEC filing.

What Happened: Crain's decision to sell 2,500 shares of Houlihan Lokey was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $464,850.

During Wednesday's morning session, Houlihan Lokey shares down by 0.0%, currently priced at $186.53.

Unveiling the Story Behind Houlihan Lokey

Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments worldwide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.

Houlihan Lokey's Economic Impact: An Analysis

Revenue Growth: Houlihan Lokey's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 23.12%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 38.5%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Houlihan Lokey's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 1.42.

Debt Management: With a below-average debt-to-equity ratio of 0.22, Houlihan Lokey adopts a prudent financial strategy, indicating a balanced approach to debt management.

Exploring Valuation Metrics Landscape:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 38.15 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: A higher-than-average P/S ratio of 6.02 suggests overvaluation in the eyes of investors, considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Boasting an EV/EBITDA ratio of 27.5, Houlihan Lokey demonstrates a robust market valuation, outperforming industry benchmarks.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Uncovering the Importance of Insider Activity

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Houlihan Lokey's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.