Houlihan Lokey Inc (HLI) is not a strong buy at this time for a beginner investor with a long-term strategy. The technical indicators suggest the stock is overbought, and hedge funds are selling heavily. While the company has demonstrated strong financial growth in its latest quarter, the lack of recent positive news, declining analyst price targets, and no significant trading signals make it prudent to hold off on purchasing the stock currently.
The MACD is positive but contracting, indicating weakening momentum. RSI at 82 suggests the stock is overbought. Moving averages are converging, and the stock is trading near its resistance level (R1: 159.496). The next support level is significantly lower at S1: 139.678.

The company reported strong financial performance in Q3 2026, with revenue up 13.03% YoY, net income up 22.29% YoY, and EPS up 22.30% YoY.
Hedge funds are selling heavily, with a 102.34% increase in selling activity over the last quarter. Analysts have recently lowered price targets, reflecting cautious sentiment. No recent news or congress trading data to support positive momentum.
In Q3 2026, Houlihan Lokey reported revenue of $717.07M (+13.03% YoY), net income of $116.55M (+22.29% YoY), and EPS of $1.70 (+22.30% YoY). Gross margin remained unchanged.
Analysts have lowered price targets recently, with Morgan Stanley reducing to $193 from $205, Keefe Bruyette to $177 from $214, and UBS to $163 from $196. Sentiment remains mixed, with some maintaining Overweight or Outperform ratings, but cautious optimism prevails amid market volatility.