Hamilton Lane (NASDAQ:HLNE) Issues Quarterly Earnings Results

by · The Markets Daily

Hamilton Lane (NASDAQ:HLNE – Get Free Report) posted its earnings results on Tuesday. The company reported $1.94 EPS for the quarter, topping the consensus estimate of $1.53 by $0.41, Zacks reports. The firm had revenue of $275.33 million for the quarter, compared to analysts’ expectations of $221.94 million. Hamilton Lane had a net margin of 32.14% and a return on equity of 25.10%. The company’s quarterly revenue was up 56.5% compared to the same quarter last year. During the same quarter last year, the firm earned $1.47 EPS.

Here are the key takeaways from Hamilton Lane’s conference call:

  • Strong quarterly growth continued, with management and advisory fees up 21%, fee-related revenue up 44%, fee-related earnings up 49%, and non-GAAP EPS of $1.94. The company maintained its targeted 11% annual dividend increase to $2.40 per share for fiscal 2027.
  • The Evergreen platform generated nearly $640 million of net inflows and reached more than $19 billion in AUM, with positive inflows in 10 of 12 funds. However, certain non-U.S. products saw elevated redemptions, and management acknowledged broader investor hesitation and slower flows amid negative private-markets headlines.
  • Closed-end fundraising momentum was strong: the latest direct equity fund raised $3.8 billion including co-investments, up more than 57% from its predecessor, while the seventh secondary fund held a first close of nearly $1.3 billion and the second venture fund secured over $370 million.
  • Customized separate accounts added more than $3.6 billion of mandate value from existing and new clients, but fee-earning AUM grew only 2% year over year because primary-focused mandates can take years to deploy and generate fees.
  • The company expects additional balance-sheet gains from strategic investments, including an estimated $18 million gain when the Russell transaction closes and more than $15 million from the proposed Canoe sale; Securitize shares will begin being marked to market next quarter.

Hamilton Lane Stock Performance

NASDAQ HLNE traded down $1.94 during trading on Thursday, hitting $98.88. The stock had a trading volume of 60,669 shares, compared to its average volume of 830,294. Hamilton Lane has a one year low of $71.88 and a one year high of $161.13. The stock has a 50 day simple moving average of $83.15 and a 200 day simple moving average of $99.38. The stock has a market capitalization of $5.49 billion, a price-to-earnings ratio of 15.10 and a beta of 1.14.

Hamilton Lane Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, October 6th. Stockholders of record on Monday, September 21st will be issued a $0.60 dividend. The ex-dividend date is Monday, September 21st. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.4%. Hamilton Lane’s payout ratio is 40.61%.

Hamilton Lane declared that its Board of Directors has approved a share buyback program on Thursday, May 21st that authorizes the company to repurchase $100.00 million in shares. This repurchase authorization authorizes the company to reacquire up to 2% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

Analysts Set New Price Targets

HLNE has been the subject of a number of analyst reports. The Goldman Sachs Group cut their price objective on shares of Hamilton Lane from $148.00 to $128.00 and set a “buy” rating for the company in a research report on Tuesday, June 30th. Weiss Ratings cut Hamilton Lane from a “hold (c)” rating to a “hold (c-)” rating in a report on Monday, July 20th. UBS Group raised their price objective on Hamilton Lane from $114.00 to $131.00 and gave the company a “buy” rating in a research note on Wednesday. Oppenheimer upped their price target on shares of Hamilton Lane from $174.00 to $182.00 and gave the company an “outperform” rating in a report on Wednesday. Finally, Morgan Stanley cut their price objective on Hamilton Lane from $141.00 to $123.00 and set an “equal weight” rating on the stock in a research report on Tuesday, July 21st. Six equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $131.71.

Read Our Latest Report on HLNE

Insider Buying and Selling at Hamilton Lane

In other news, Chairman Hartley R. Rogers purchased 55,000 shares of the business’s stock in a transaction dated Tuesday, May 26th. The shares were purchased at an average price of $90.05 per share, for a total transaction of $4,952,750.00. Following the completion of the purchase, the chairman owned 55,000 shares in the company, valued at approximately $4,952,750. This represents a ∞ increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, COO Andrea Anigati Kramer bought 1,283 shares of the stock in a transaction on Thursday, June 11th. The shares were bought at an average price of $77.46 per share, with a total value of $99,381.18. Following the acquisition, the chief operating officer owned 87,350 shares of the company’s stock, valued at $6,766,131. This trade represents a 1.49% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. Insiders acquired a total of 95,039 shares of company stock worth $8,100,739 in the last ninety days. 23.99% of the stock is currently owned by corporate insiders.

Institutional Trading of Hamilton Lane

Several large investors have recently bought and sold shares of the stock. Royal Bank of Canada lifted its stake in Hamilton Lane by 6.0% during the 1st quarter. Royal Bank of Canada now owns 52,466 shares of the company’s stock valued at $7,800,000 after acquiring an additional 2,948 shares during the period. Jones Financial Companies Lllp increased its holdings in Hamilton Lane by 4,806.7% in the 1st quarter. Jones Financial Companies Lllp now owns 5,103 shares of the company’s stock valued at $759,000 after purchasing an additional 4,999 shares during the last quarter. Geneos Wealth Management Inc. boosted its holdings in Hamilton Lane by 196.9% in the first quarter. Geneos Wealth Management Inc. now owns 383 shares of the company’s stock valued at $57,000 after purchasing an additional 254 shares during the period. First Trust Advisors LP lifted its holdings in Hamilton Lane by 26.7% during the 2nd quarter. First Trust Advisors LP now owns 31,483 shares of the company’s stock worth $4,474,000 after buying an additional 6,636 shares during the last quarter. Finally, Amundi increased its position in Hamilton Lane by 39,766.7% during the second quarter. Amundi now owns 2,392 shares of the company’s stock worth $347,000 after buying an additional 2,386 shares during the period. Hedge funds and other institutional investors own 97.40% of the company’s stock.

About Hamilton Lane

(Get Free Report)

Hamilton Lane is a global private markets investment management firm specializing in the full spectrum of private equity and credit strategies. The company partners with institutional investors and wealth managers to design, implement and manage customized portfolios in primary fund investing, secondary market transactions and direct co-investment opportunities. By combining investment selection, portfolio construction and ongoing monitoring, Hamilton Lane seeks to optimize risk-adjusted returns across diverse private markets exposures.

Founded in 1991, Hamilton Lane has developed a track record of investment and advisory services in private markets.

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