Key Drivers
- Strong margins
- Robust FCF
- High intangibles
AIAI Summary
Houlihan Lokey should be viewed less as a growth‑story boutique and more as a high‑margin, cash‑flow‑dependent professional‑services franchise whose valuation premium now hinges on sustaining deal flow, disciplined buybacks/dividends, and clean governance — any sustained M&A slowdown or prolonged legal/institutional selling will materially compress the thesis. Actionable signals: track FCF conversion, quarterly deal volumes/backlog, resolution of shareholder inquiries, and the technical breakpoints (support ~139–140 = de‑rating; reclaiming 157–163 = confidence resumption).
Price Chart
Financial Metrics
Deep Analysis
Research tool. Not personalized advice.
Fundamental Analysis
Key Financial Insights:
- •Strong margins
- •Robust FCF
- •High intangibles
HLI is a highly profitable, cash-generative business with strong margins and moderate leverage, but elevated valuation multiples, large intangibles, and concentrated operating costs increase reliance on continued high-margin performance.
Price Behavior
Key Price Behavior Insights:
- •Short-term downtrend
- •Defined support band
- •Overbought momentum
HLI is in a short-term downtrend—trading about 9% below its last month SMA (~$152.50) with a nearby support band at $138.90–$139.90, layered resistance at $157–$163 and $167–$172, and an overbought RSI (~mid-80s) raising the odds of mean reversion.
RSI in the mid-80s after a sharp rally while price sits ~9% below last month
Sentiment & News
Key News Insights:
- •Large institutional selling
- •Selective accumulation
- •Stockholder investigation
Institutional investors have materially cut stakes in Houlihan Lokey while one increased exposure and a stockholder investigation was opened, signaling mixed selling pressure and legal overhang.
Expect near‑term share pressure and elevated volatility as outsized selling and legal scrutiny create downside risk
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