Exploring Houlihan Lokey, Inc. (HLI) Investor Profile: Who’s Buying and Why?

You're looking at Houlihan Lokey, Inc. (HLI) and wondering who's driving the stock's momentum, especially after a record fiscal year 2025 where revenues hit a massive $2.39 billion. The short answer is: institutions are firmly in control, but a key internal group is quietly stepping back. Right now, a commanding 78.07% of the stock is held by institutional investors-the BlackRock, Inc.s and Vanguard Group Incs of the world-who are clearly betting on the firm's dominance in complex advisory work like financial restructuring and M&A. But here's the critical detail you can't ignore: while the big funds are accumulating, insiders have been net sellers, offloading approximately 47,311 shares, valued around $9.48 million, over the past 90 days. This divergence between institutional conviction and insider selling is a classic signal that demands a closer look. Are the institutions buying a continued upswing in deal flow, or are insiders taking profits because they see a near-term ceiling for a stock trading around $180.33 per share? Let's defintely dig into the 13F filings to see exactly who is moving the needle and why you should care.

Who Invests in Houlihan Lokey, Inc. (HLI) and Why?

If you're looking at Houlihan Lokey, Inc. (HLI), the direct takeaway is this: the investment bank is overwhelmingly owned by large, long-term institutional money, not speculative hedge funds or day traders. These major players are attracted by HLI's unique counter-cyclical strength in Financial Restructuring and its explosive Corporate Finance growth, a powerful combination that delivered record fiscal year 2025 results.

Key Investor Types: The Institutional Dominance

The investor profile for Houlihan Lokey, Inc. is defintely top-heavy, leaning heavily on institutional investors-think massive mutual funds, pension funds, and asset managers. These institutions hold the vast majority, controlling about 78% of the company's stock. This high concentration means the stock price is highly sensitive to the trading actions of a relatively small number of large firms.

The general public, or retail investors, hold a smaller but still considerable stake, typically around 16% of the outstanding shares. Interestingly, hedge funds-the groups known for aggressive, short-term bets-do not hold a particularly meaningful investment in HLI compared to the index and mutual funds. Insiders, including executives and directors, also maintain a significant position, owning roughly 22.83% of the shares, which is a strong sign of management's alignment with shareholder interests.

The largest shareholders are exactly who you'd expect to see in a well-regarded mid-cap company:

BlackRock, Inc. is currently the largest single shareholder.

Investment Motivations: Growth, Restructuring, and Income

Investors are buying Houlihan Lokey, Inc. for a few clear reasons, all tied to the company's strong performance across its three core advisory segments. The firm's ability to thrive in both boom and bust cycles is its main draw.

• Explosive Growth Prospects: Fiscal Year 2025 was a record year, with revenues hitting $2.39 billion, a massive 25% jump from the prior year. Corporate Finance (CF) revenue, driven by Mergers & Acquisitions (M&A), saw a 38% increase, showing investors are betting on the M&A rebound.
• Market Position and Resilience: HLI is the No. 1 global restructuring advisor for the past 11 years, based on the number of transactions. This Financial Restructuring (FR) segment provides a crucial hedge against economic downturns, as its revenue is counter-cyclical.
• Reliable Dividend Income: The company offers a steady, growing dividend. The board approved a 5% increase in the quarterly dividend to $0.60 per share, which translates to an annualized payout of $2.40 and a yield of about 1.4%. They have increased dividends for nine successive years.

The firm is a top-tier investment bank, but it's also a defensive play. For more on how its structure drives this, you can look at Houlihan Lokey, Inc. (HLI): History, Ownership, Mission, How It Works & Makes Money.

Investment Strategies: Long-Term Growth at a Premium

The overwhelming institutional ownership dictates the primary investment strategies seen in Houlihan Lokey, Inc. The stock is a core holding for many large-scale, long-horizon investors.

• Long-Term Holding/Passive Investing: The presence of index fund behemoths like BlackRock, Inc. and Vanguard Group Inc. means a significant portion of the stock is held passively. These funds buy and hold for the long haul, tracking market indices. They are not short-term traders.
• Growth Investing: Investors are clearly paying a premium for HLI's growth story. The stock trades at roughly 29.4 times earnings, which is higher than the US Capital Markets industry average of 24x. Here's the quick math: investors are willing to pay more for each dollar of HLI's earnings because they expect those earnings to grow faster than its peers.
• Value Investing with a Growth Tilt (GARP): While the P/E ratio is high, the company's strong fundamentals-like a 101% total return over the last three years and a return on equity of 23.75%-appeal to investors seeking growth-at-a-reasonable-price (GARP). They see a high-quality, high-margin business (net margin of 16.46%) that justifies the premium valuation.

The strategy is simple: buy into a high-quality financial services firm with a proven, recession-resistant business model and a history of shareholder returns.

Institutional Ownership and Major Shareholders of Houlihan Lokey, Inc. (HLI)

You're looking at Houlihan Lokey, Inc. (HLI) and trying to figure out who the big players are and what their moves mean for your investment. The direct takeaway is this: institutional investors own the vast majority of the company, giving them significant sway, and their collective actions show a belief in HLI's long-term advisory strength, even with some recent profit-taking.

As of the 2025 fiscal year data, institutions-like mutual funds, pension funds, and major asset managers-hold a commanding stake of roughly 78% of Houlihan Lokey, Inc.'s stock. That's a massive concentration of power, meaning the stock price is defintely sensitive to their trading actions, and their long-term view is what really matters here.

Top Institutional Investors: Who Holds the Keys?

The investor profile for Houlihan Lokey, Inc. is dominated by the giants of passive and active management. These aren't speculative hedge funds playing short-term games; these are the core, long-term asset managers who anchor a stock. The two largest holders are names you know well, and their positions are substantial, reflecting HLI's credibility in the investment community.

Here's the quick math on the largest institutional shareholders, based on the latest 2025 filings:

BlackRock, Inc. and Vanguard Group Inc. alone control over 15% of the company. When firms this large commit capital, it signals a strong conviction in the business model-in this case, HLI's diversified and counter-cyclical advisory services, especially in financial restructuring, which is their bread and butter.

Recent Shifts: Are Institutions Buying or Selling?

The narrative in 2025 has been a bit mixed, which is normal for a high-quality financial services stock after a period of strong performance. We've seen a healthy churn of buying and selling, but the overall institutional ownership percentage remains high at around 78%. The selling is often a sign of profit-taking, not a flight from the stock.

To be fair, some institutions have trimmed their positions. For example, PNC Financial Services Group Inc. cut its stake by 9.5% in the second quarter of 2025, selling 1,607 shares with a value of about $2.76 million at the time. Similarly, Bank Julius Baer & Co. Ltd Zurich reduced its holdings by 17.6% in Q2 2025, selling 7,493 shares.

• PNC Financial Services trimmed its stake by 9.5% in Q2 2025.
• Bank Julius Baer & Co. Ltd Zurich lowered its position by 17.6% in Q2 2025.

But still, the buying activity shows new money coming in. Smaller, more active managers are increasing their bets. TCTC Holdings LLC, for instance, grew its stake by a substantial 103.5% in the first quarter of 2025. This suggests that while large, passive funds might be rebalancing, other investors see HLI's strong Q3 Fiscal 2025 results-which included a 24% revenue increase and a 34% rise in adjusted earnings per share (EPS)-as a clear buying signal. You can read more about the underlying Breaking Down Houlihan Lokey, Inc. (HLI) Financial Health: Key Insights for Investors.

Impact on Stock Price and Corporate Strategy

The high institutional ownership is a double-edged sword for Houlihan Lokey, Inc. On one hand, it provides stability and validation; these firms have done their due diligence. On the other hand, the stock price is highly sensitive to their collective trading actions. If two or three major institutional investors were to liquidate their positions simultaneously, you'd see a sharp drop in price.

More importantly, these large shareholders influence corporate strategy. HLI's management is currently focused on three key areas that align with institutional growth expectations:

• Global Expansion: Deepening international operations to diversify revenue beyond U.S. M&A cycles.
• Talent Acquisition: Hiring senior experts to boost sector expertise and advisory capabilities.
• Product Innovation: Launching new platforms, like the proprietary Private Credit DataBank, to stay ahead of market trends.

The investors are essentially betting that these strategic moves will drive top-line growth, especially given the robust performance in Q3 Fiscal 2025, where revenue hit $659.45 million, beating consensus estimates. Your action item here is to monitor the 13F filings (quarterly reports of institutional holdings) for any sudden, large-scale selling from the top five holders. That's your early warning signal.

Key Investors and Their Impact on Houlihan Lokey, Inc. (HLI)

You want to know who is buying Houlihan Lokey, Inc. (HLI) and why, and the short answer is that the world's largest asset managers are the core owners, driving stability but also dictating the stock's passive movements. Institutional investors hold a dominant position, owning approximately 78.07% of the company's stock as of late 2025, meaning their capital allocation decisions are the primary force behind stock price shifts.

The investor profile for Houlihan Lokey, Inc. is classic for a stable, high-quality financial services firm: it's dominated by passive and quasi-passive index giants. The top two investors alone control a significant portion of the float, which is a powerful, if quiet, form of influence. They aren't activist investors pushing for a breakup, but their sheer size means management defintely pays attention to their concerns.

• BlackRock, Inc.: Holds the largest stake with approximately 5,675,918 shares, representing 8.07% of the company as of June 29, 2025.
• The Vanguard Group, Inc.: The second-largest holder with about 5,291,432 shares, or 7.53% ownership, reported on the same date.

Investor Influence: The Passive Power of Giants

These large institutional holders exert influence through what I call 'passive power.' They are essentially permanent shareholders, often holding the stock across numerous index funds (like the iShares Core S&P Mid-Cap ETF or Vanguard Total Stock Market Index Fund). Their influence is less about public activism and more about setting the floor for liquidity and stability. When BlackRock or Vanguard rebalance their massive funds, even a small percentage change in their HLI position translates into millions of shares moving, which can significantly impact the stock price.

For a firm like Houlihan Lokey, Inc. that reported strong fiscal year 2025 results-with full-year revenue hitting $2.39 billion and adjusted pre-tax income at $619 million-this institutional backing signals long-term confidence in its diversified business model. If you want a deeper look at the fundamentals driving this confidence, you should check out Breaking Down Houlihan Lokey, Inc. (HLI) Financial Health: Key Insights for Investors.

Recent Capital Moves: Institutional Buying vs. Insider Selling

The near-term activity shows a clear trend of institutional accumulation against a backdrop of insider profit-taking. This is a common pattern in a strong market run: institutions are buying for long-term exposure, but insiders are monetizing their gains. Here's the quick math on recent reported moves:

You can see the clear momentum: active managers like Jennison Associates LLC and Handelsbanken Fonder AB are making substantial, double-digit percentage increases in their positions. This suggests they see continued upside in Houlihan Lokey, Inc.'s core business, especially given its leadership in M&A deal volume across sectors like construction and TMT (Technology, Media, and Telecom).

Still, you need to note the insider activity. Over the 90 days leading up to November 2025, company insiders were net sellers, offloading approximately 47,311 shares with a total value of around $9.48 million. This is not a red flag for me, but it is a data point: it simply means that while the institutions are adding to their long-term position, company executives are taking some chips off the table after a period of strong performance. Your action should be to follow the institutional money, but be mindful that the smart money inside the company isn't buying right now.

Market Impact and Investor Sentiment

You're looking at Houlihan Lokey, Inc. (HLI) and wondering what the smart money is thinking right now, and the answer is a cautious but clear 'Moderate Buy.' Institutional investors hold the reins, owning about 78.07% of the stock, which is a strong vote of confidence in the firm's advisory model, especially in a volatile market. This high level of institutional ownership signals stability, but you still need to watch the mixed signals coming from insiders and the market's reaction to earnings.

The overall investor sentiment is positive because Houlihan Lokey delivered a record fiscal year 2025, with revenues hitting $2.39 billion, a 25% jump from the prior year. That's a massive top-line win, driven by a 38% increase in Corporate Finance (M&A) revenue. The firm is clearly capitalizing on its market position, but the market is defintely scrutinizing its valuation.

Who's Buying and Why: The Institutional Footprint

The investor profile for Houlihan Lokey is dominated by the giants of asset management. The largest individual shareholder is BlackRock, Inc., which holds approximately 5.51 million shares, representing 7.86% of the company. Vanguard Group Inc is right behind them. These are not activist investors; they are passive, long-term holders who buy into the core business model-a diversified investment bank that thrives in both M&A and restructuring cycles.

Here's the quick math on the top institutional owners-their presence anchors the stock and provides a buffer against short-term noise:

What this estimate hides is the recent institutional accumulation. For example, Jacobs Levy Equity Management Inc. increased its position by a staggering 1,168.0% in the first quarter of 2025, buying an additional 220,632 shares. This aggressive buying by specialized funds shows conviction in the firm's ability to maintain its leadership in Financial Restructuring and its growing Corporate Finance practice. You can read more about the firm's long-term strategy in its Mission Statement, Vision, & Core Values of Houlihan Lokey, Inc. (HLI).

Recent Market Reactions and Insider Moves

The stock market's reaction to Houlihan Lokey's performance has been a classic example of 'buy the rumor, sell the news.' Despite the firm beating expectations for its Q3 2025 earnings-reporting diluted earnings per share (EPS) of $1.84 against a consensus of $1.69, and revenue of $659.45 million-the stock dropped 8.8% following the announcement. The market was already pricing in a strong performance, so the focus immediately shifted to the forward-looking guidance, which included an expected full-year EPS growth of only 5.4%. That's a letdown for a premium-valued stock.

Another factor to consider is insider activity. While institutions are net buyers, insiders-the people who know the business best-have been net sellers, offloading 47,311 shares worth about $9.48 million over the last 90 days. This isn't a panic sale, as insiders still own 22.83% of the company, but it's a signal that management sees the current stock price as an attractive exit point for some of their holdings. You can't ignore that.

Analyst Perspectives: Valuation vs. Growth

The analyst community is generally bullish on the business but wary of the valuation. The consensus price target is $212.43, suggesting a decent upside from the current price, with the high target at $230.00. Their optimism is grounded in the firm's market dominance, especially its M&A deal volume leadership across key sectors like construction, TMT, and financial services through the first three quarters of 2025.

However, the premium valuation is a sticking point. The stock's price-to-earnings (P/E) ratio sits at about 28.5x, which is notably higher than the industry average of 23.4x. Analysts are essentially saying: 'This is a high-quality company, but you are paying a high price for that quality.'

• Buy: Betting on sustained M&A strength and counter-cyclical Financial Restructuring.
• Hold: Acknowledging quality but citing the expensive 28.5x P/E multiple.
• Action: Monitor the M&A pipeline for signs of a slowdown; a dip in Corporate Finance revenue would be a major risk.

The core message is this: Houlihan Lokey is a top-tier investment bank with a record-breaking 2025, but its stock is priced for perfection, so any future earnings miss will be met with a sharp market reaction, as we saw with the Q3 drop. Your next step should be to look closely at the pipeline for the Corporate Finance and Financial Restructuring segments to gauge if the next fiscal year can justify the current premium.