Houlihan Lokey carries a high-quality franchise with strong operating margins and a favorable long-term earnings record, but a confirmed technical downtrend, a recent earnings miss, declining revenue, and a risk/reward just below the asymmetry threshold argue for holding existing positions and waiting for momentum to stabilize before committing new capital.
Thesis pillars
- Quality Franchise Reasonable Valuation→Stable
- Revenue Decline Growth Headwind→Stable
- Confirmed Technical Downtrend↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026, based on the 10-K filed May 22, 2026
Houlihan Lokey, Inc. (HLI) Stock Analysis
Recovery setup
Financial Services · Capital Markets
Sell if holding. Analyst target reached at $137.38 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2).
Houlihan Lokey is an independent investment bank established in 1972, operating across three segments — Corporate Finance (M&A and capital solutions), Financial Restructuring, and Financial and Valuation Advisory — from more than 30 offices worldwide with over 1,900 financial... Read more
Sell if holding. Analyst target reached at $137.38 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2). Chart setup: Death cross but MACD improving, RSI 66. Score 5.8/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, positive momentum, no SEC red flags, earnings proximity no date, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated 2026-10-29Recent Developments — Houlihan Lokey, Inc.
Latest news
- NEWS HOULIHAN LOKEY ($HLI) Releases Q1 2027 Earnings - Quiver Quantitative — Quiver Quantitative neutral
- NEWS HOULIHAN LOKEY ($HLI) Releases Q1 2027 Earnings - quiverquant.com — quiverquant.com positive
- NEWS Houlihan Lokey (NYSE:HLI) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings, Stock Drops - StockStory — StockStory negative
- NEWS Houlihan Lokey (NYSE:HLI) Reports Sales Below Analyst Estimates In Q2 CY2026 Earnings, Stock Drops - FinancialContent — FinancialContent negative
- NEWS Earnings Flash (HLI) Houlihan Lokey, Inc. Posts Q1 Adjusted EPS $1.35 per Share, vs. FactSet Est of $1.64 - marketscreen — marketscreener.com negative
Generated 2026-10-29T12:43:34Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMGeographicinternational operations32%10-K Item 1A: 'In fiscal 2026, we earned approximately 32.2% of our revenue from our international operations.'
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
Show full disclosure ▾Hide full disclosure ▴
About TrendMatrix. TrendMatrix is a publisher of general securities research and market commentary. We publish on a regular schedule. All content is the same for every subscriber in a tier — we do not provide personalized investment advice and we do not take into account any individual subscriber's financial situation, investment objectives, risk tolerance, tax situation, or holdings.
Not investment advice. TrendMatrix is not a registered investment adviser. Our content is for informational and educational purposes only. Consult your own licensed investment adviser, broker, or tax professional before making any investment decision.
Conflicts and positions. People who build TrendMatrix, or entities they control, may hold positions, long or short, in securities it covers, and may trade them at any time. Positions are not disclosed individually. Verdicts are generated by an automated model applied by the same rules to every covered stock, and are not adjusted for any position held by the people who build TrendMatrix. We do not accept payment from issuers for coverage.
No paid promotion. TrendMatrix does not accept payment from any issuer, broker, or third party in exchange for coverage of any security.
No fiduciary duty. No fiduciary, advisory, or agency relationship is created between you and TrendMatrix by reading our content or subscribing to our service.
Performance. Past performance is not indicative of future results. Performance figures reflect the published model only and do not reflect any individual subscriber's actual results.
Rating Breakdown
1 floor-breaker
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Analyst target reached at $137.38 — A.R:R is negative (-0.1) — price has exceeded the analyst target. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Consecutive earnings misses (2). Chart setup: Death cross but MACD improving, RSI 66. Prior stop was $128.88. Score 5.8/10, moderate confidence.
Analyst target $135.24 reached (−1.6% from $137.38); no take-profit level is published. Prior stop was $128.88. Stop-loss: $128.88.
Analyst target reached - limited upside remaining; Consecutive earnings misses (2); Below 200-MA, MA slope -4.6%/30d (confirmed downtrend).
Houlihan Lokey, Inc. trades at a P/E of 23.1 (forward 16.0). TrendMatrix value score: 7.0/10. Verdict: Sell.
14 analysts cover HLI with a consensus score of 3.6/5. Average price target: $155.
What does Houlihan Lokey, Inc. do?Houlihan Lokey is an independent investment bank established in 1972, operating across three segments — Corporate...
Houlihan Lokey is an independent investment bank established in 1972, operating across three segments — Corporate Finance (M&A and capital solutions), Financial Restructuring, and Financial and Valuation Advisory — from more than 30 offices worldwide with over 1,900 financial professionals. Revenue is driven primarily by advisory fees, a substantial portion contingent on transaction completion, with approximately 32% derived from international operations in fiscal 2026. The firm employed approximately 2,800 people as of March 31, 2026.