Christopher M. Crain, General Counsel at Houlihan Lokey, Inc. (NYSE:HLI), recently executed a series of stock transactions, according to a filing with the Securities and Exchange Commission. On November 8, Crain sold 2,500 shares of Class A Common Stock, with the sale price averaging $185.94 per share. This transaction amounted to a total value of $464,850.
The filing also detailed a conversion of 2,500 shares of Class B Common Stock into Class A Common Stock. However, this conversion did not involve a cash transaction. The Class B shares are convertible into Class A shares on a one-for-one basis, with no expiration date, as stated in the company's initial public offering documentation.
After these transactions, Crain holds no shares directly but retains investment control over an additional 51,725 shares held indirectly through the HL Voting Trust.
In other recent news, global investment bank Houlihan Lokey reported significant increases in its recent earnings. The firm's second quarter revenues for fiscal year 2025 reached $575 million, marking a 23% year-over-year increase, and adjusted earnings per share rose by 32% to $1.46. These developments are attributed to a favorable environment for mergers and acquisitions, new business activity in financial restructuring, and increased demand for market-neutral services.
In addition to the robust financial performance, Houlihan Lokey has been active in acquisitions, with three announced over the last twelve months and two already closed. The firm has also appointed Brad Boggess, a former Blackstone (NYSE:BX) executive, as a Managing Director in its Capital Markets Group, further strengthening its operational capabilities.
Seaport Global Securities maintained a Neutral rating on the company, citing an increase in FY2025E/FY2026E EPS to $5.75/$6.60 from $5.50/$6.40. The firm expects continued strength in restructuring activities, and the capital markets business is projected to contribute 15% to 20% of Corporate Finance revenues. Despite these recent developments, it's essential for investors to keep an eye on Houlihan Lokey's future moves.
InvestingPro Insights
As Houlihan Lokey's General Counsel executes significant stock transactions, it's worth noting the company's strong financial performance and market position. According to InvestingPro data, Houlihan Lokey boasts a market capitalization of $12.97 billion, reflecting its substantial presence in the financial services sector.
The company's revenue growth is particularly impressive, with a 23.1% increase in quarterly revenue as of Q2 2025. This robust growth is complemented by a healthy gross profit margin of 93.7% over the last twelve months, indicating efficient operations and strong pricing power in its advisory services.
InvestingPro Tips highlight that Houlihan Lokey has raised its dividend for 10 consecutive years, demonstrating a commitment to shareholder returns that aligns with the executive's stock transactions. The company's current dividend yield stands at 1.2%, with a dividend growth rate of 3.64% over the last twelve months.
Furthermore, HLI's stock has shown remarkable performance, with a 60.31% year-to-date price total return and an 88.28% return over the past year. This strong market performance may provide context for the timing of the General Counsel's stock sale.
For investors seeking a deeper understanding of Houlihan Lokey's financial health and market position, InvestingPro offers 16 additional tips, providing a comprehensive analysis to inform investment decisions.
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