Analysts Set Target Price for Hamilton Lane Inc. at $159.29

Hamilton Lane Inc. (NASDAQ:HLNE) has received an average rating of “Moderate Buy” from nine research firms currently covering the company. According to MarketBeat.com, five analysts have assigned a hold rating, three have given a buy rating, and one has issued a strong buy rating. The average twelve-month price target among these brokerages is set at approximately $159.29.

Recent reports from several research firms indicate a shift in sentiment regarding Hamilton Lane. The Goldman Sachs Group upgraded the stock from a “neutral” to a “buy” rating, with a target price of $165.00 in a report dated November 6, 2023. Additionally, Wall Street Zen elevated the stock from a “sell” to a “hold” rating on November 9, 2023. Zacks Research, on the other hand, downgraded Hamilton Lane from a “strong-buy” to a “hold” rating on October 22, 2023.

BMO Capital Markets initiated coverage on Hamilton Lane on October 3, 2023, assigning it an “outperform” rating with a price objective of $150.00. Following this, Keefe, Bruyette & Woods raised their target price from $150.00 to $158.00 while maintaining an “outperform” rating in their report on November 6, 2023.

Institutional Investors Take Positions

Large investors have recently adjusted their stakes in Hamilton Lane. IFP Advisors Inc. increased its holdings by 8.6% in the second quarter, now owning 1,011 shares valued at $144,000. Meanwhile, Hantz Financial Services Inc. raised its stake by an impressive 80.5% in the third quarter, bringing its total to 213 shares valued at $29,000 after acquiring an additional 95 shares.

The Louisiana State Employees Retirement System also lifted its position by 0.8% during the second quarter, now owning 12,200 shares worth $1.73 million. Similarly, KLP Kapitalforvaltning AS grew its stake by 1.2%, owning 8,400 shares valued at $1.2 million, while Vista Finance LLC increased its holdings by 4.1%, owning 2,568 shares worth $365,000. Notably, institutional investors and hedge funds collectively own 97.40% of the company’s stock.

Hamilton Lane’s Financial Performance

As of Friday, the stock opened at $126.95, with a market capitalization of $7.08 billion. The company has a P/E ratio of 23.00 and a beta of 1.33. Over the past year, Hamilton Lane has seen a low of $111.98 and a high of $183.57. The firm’s fifty-day moving average price is $123.17, while the two-hundred-day moving average stands at $140.76.

On November 4, 2023, Hamilton Lane reported earnings that exceeded expectations, posting an EPS of $1.54 for the quarter, surpassing the consensus estimate of $1.08 by $0.46. The firm achieved a net margin of 31.12% and a return on equity of 29.43%, with revenue of $190.88 million, also above the consensus estimate of $171.86 million. Analysts project that Hamilton Lane will post earnings per share of $4.97 for the current fiscal year.

The company has also announced a quarterly dividend of $0.54 per share, which will be paid on January 7, 2024. Shareholders on record as of December 19, 2023 will receive this dividend, representing an annualized total of $2.16 and a dividend yield of 1.7%. The ex-dividend date is also set for December 19, 2023, and Hamilton Lane’s current dividend payout ratio stands at 39.13%.

Founded as a private equity firm, Hamilton Lane specializes in various investment strategies, including early venture, emerging growth, and buyouts, focusing on sectors such as energy, healthcare, and information technology. As it continues to navigate market conditions, analysts and investors remain watchful of its performance and strategic decisions in the coming months.