In a recent transaction, Co-Chairman Irwin Gold of Houlihan Lokey, Inc. (NYSE:HLI), a global investment banking firm, sold 9,902 shares of the company's Class A common stock, resulting in a total sale value of approximately $1.34 million.
The transaction took place on June 28, 2024, with the shares being sold at a weighted average price ranging from $135.00 to $135.89 per share. The specific average price for the shares sold was $135.25. Following the sale, Gold's direct holdings in Class A common stock dropped to zero.
This sale comes in conjunction with a derivative transaction involving Class B common stock, where the same amount of shares, 9,902, were converted into Class A common stock at no cost. Class B shares are convertible into Class A on a one-for-one basis at the holder's discretion, upon any transfer, and will automatically convert on the Final Conversion Date as defined by the company's initial public offering documentation.
Furthermore, Gold is associated with the HL Voting Trust as a trustee, which retains shared voting control over the shares deposited into the trust. Gold possesses a pecuniary interest in and investment control over the shares reported in this transaction.
Investors and followers of Houlihan Lokey may find this transaction noteworthy as it reflects a significant change in one of the company's top executive's holdings. The details of the transaction, including the number of shares sold at various prices within the specified range, are available upon request from the company or the Securities and Exchange Commission.
This financial activity was disclosed in a Form 4 document filed with the SEC, which provides transparency into the trading activities of the company's insiders.
In other recent news, Houlihan Lokey, a global investment bank, reported a robust fourth quarter and fiscal year 2024. The company's revenues increased by 17% to $520 million, and adjusted earnings per share rose by 14% to $1.27 compared to the same period last year. The firm's corporate finance and financial and valuation advisory segments showed stability, while its financial restructuring business experienced growth.
Houlihan Lokey also expanded its team by hiring 11 new managing directors and promoting 14 directors to managing director positions. The company successfully completed the Triago acquisition, enhancing its capital markets business. Despite market uncertainties, Houlihan Lokey expects its financial restructuring business to maintain elevated levels through fiscal 2025.
These are recent developments that also include the company's adjusted compensation expense ratio for the quarter and fiscal year at 61.5%, and an increase in adjusted non-compensation expenses due to investments in technology, real estate, and travel post-pandemic. The company's unrestricted cash and equivalents, and investment securities totaled approximately $759 million. Lastly, the quarterly dividend increased by 3.5%.
InvestingPro Insights
Amidst the recent insider trading activity by Co-Chairman Irwin Gold of Houlihan Lokey, Inc. (NYSE:HLI), investors might be curious about the company's financial health and market performance. According to InvestingPro data, Houlihan Lokey boasts a robust market capitalization of $9.35 billion. The company's P/E ratio currently stands at 31.2, which is considered high, suggesting that the market has high expectations of future earnings growth.
Despite the high earnings multiple, it's worth noting that Houlihan Lokey has been a consistent performer when it comes to dividends. An InvestingPro Tip highlights that the company has not only maintained its dividend payments for 10 consecutive years but has also raised its dividend for 9 consecutive years. This could be a signal of the company's commitment to returning value to shareholders and its confidence in sustained profitability, which is further supported by analysts predicting the company will remain profitable this year.
Additionally, Houlihan Lokey is trading near its 52-week high, with the price at 98.78% of the peak. This could be indicative of strong market confidence in the firm's performance and future prospects. For investors looking for more in-depth analysis and additional InvestingPro Tips on Houlihan Lokey, they can explore the insights available on InvestingPro, which currently lists 10 more tips for the company. Enhance your investment strategy by using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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