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↑Improving
- Revenue Decline Growth Headwind↑Improving
- 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· older than 90 days
Houlihan Lokey, Inc. (HLI) Stock Analysis
Recovery setup
Financial Services · Capital Markets
Sell if holding. Analyst target reached at $146.74 — A.R:R is negative (-0.3) — 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 $146.74 — A.R:R is negative (-0.3) — 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 79. Score 6.2/10, moderate confidence.
Passes 7/9 gates (positive momentum, clean insider activity, positive momentum, no SEC red flags, earnings proximity 84d clear, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio. Suitability: moderate.
Recent developments
updated Oct 28, 2026Recent Developments — Houlihan Lokey, Inc.
Latest news
- NEWS Houlihan Lokey Fiscal Q2 Earnings, Revenue Rise; Shares Fall After Hours - marketscreener.com — marketscreener.com Oct 28, 2026 neutral
- NEWS Houlihan Lokey (NYSE:HLI) reports bullish Q3 CY2026 but stock drops - StockStory — StockStory Oct 28, 2026 neutral
- NEWS Houlihan Lokey (NYSE:HLI) reports bullish Q3 CY2026 but stock drops - FinancialContent — FinancialContent Oct 28, 2026 neutral
- NEWS Houlihan Lokey (HLI) Could Be 14% Below Fair Value After Derek Herbert Hire - Simply Wall Street — Simply Wall Street Oct 27, 2026 positive
- NEWS Houlihan Lokey (HLI) reports Q3: everything you need to know ahead of earnings - Yahoo Finance — Yahoo Finance Oct 27, 2026 neutral
Latest item Oct 28, 2026 · Generated 2026-11-04T11:34:31Z.
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
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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
Sell if holding. Analyst target reached at $146.74 — A.R:R is negative (-0.3) — 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 79. Prior stop was $137.44. Score 6.2/10, moderate confidence.
Analyst target $140.46 reached (−4.3% from $146.74); no take-profit level is published. Prior stop was $137.44. Stop-loss: $137.44.
Analyst target reached - limited upside remaining; Consecutive earnings misses (2); Overbought (RSI 79).
Houlihan Lokey, Inc. trades at a P/E of 24.6 (forward 16.9). TrendMatrix value score: 6.8/10. Verdict: Sell.
14 analysts rate HLI, with a consensus score of 3.6/5. 9 analysts publish price targets averaging $161.
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.