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↓Deteriorating
- +1 more pillar — see the Why tab for full reasoning
Houlihan Lokey, Inc. (HLI) Stock Analysis
Recovery setup
Financial Services · Capital Markets
Wait for pullback to $133.22. At $140.23 the A.R:R is 0.8:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $133.22 (5% below current) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Thin upside margin: 5.3%.
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
Wait for pullback to $133.22. At $140.23 the A.R:R is 0.8:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $133.22 (5% below current) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Thin upside margin: 5.3%. Chart setup: Death cross but MACD improving, RSI 47. Earnings in 3 days. Wait until post-earnings. Score 6.2/10, moderate confidence.
Passes 5/9 gates (clean insider activity, no SEC red flags, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA) and earnings proximity 3d<=7d. Suitability: moderate.
Recent developments
updated 2026-07-26Recent Developments — Houlihan Lokey, Inc.
Latest news
- NEWS Houlihan Lokey (HLI) to Release Earnings on Wednesday - MarketBeat — MarketBeat neutral
- NEWS HLI stock holds steady after latest report metrics - Ad-hoc-news.de — Ad-hoc-news.de positive
- NEWS HLI stock holds steady after latest report metrics - AD HOC NEWS — AD HOC NEWS neutral
- NEWS Analysts Estimate Houlihan Lokey (HLI) to Report a Decline in Earnings: What to Look Out for - Yahoo Finance — Yahoo Finance negative
- NEWS HLI Maintained by UBS -- Price Target Raised to $161.00 - GuruFocus — GuruFocus positive
Generated 2026-07-27T16:03:00Z.
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.
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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
Wait for pullback to $133.22. At $140.23 the A.R:R is 0.8:1 — below the 1.5:1 minimum for BUY_NOW. Engine's entry $133.22 (5% below current) is the shallowest technical level that clears the 2:1 A.R:R minimum. Key risk: Thin upside margin: 5.3%. Chart setup: Death cross but MACD improving, RSI 47. Earnings in 3 days. Wait until post-earnings. Target $147.68 (+5.3%), stop $126.80 (−10.6%), A.R:R 0.8:1. Score 6.2/10, moderate confidence.
Take-profit target: $147.68 (+5.3% upside). Target $147.68 (+5.3%), stop $126.80 (−10.6%), A.R:R 0.8:1. Stop-loss: $126.80.
Thin upside margin: 5.3%.
Houlihan Lokey, Inc. trades at a P/E of 22.5 (forward 14.9). TrendMatrix value score: 7.5/10. Verdict: Buy (Wait for Entry).
14 analysts cover HLI with a consensus score of 3.4/5. Average price target: $170.
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.