Form 4: HLI General Counsel Sells Shares Under 10b5-1 Plan

Houlihan Lokey's General Counsel, Christopher M. Crain, reported the sale of 500 Class A Common Stock shares for $196.22 each, executed under a pre-arranged 10b5-1 trading plan.

Summary

• Christopher M. Crain, General Counsel of Houlihan Lokey, Inc. (HLI), reported transactions on September 2, 2025.
• The transactions were executed pursuant to a Rule 10b5-1 trading plan adopted on November 18, 2024.
• Crain converted 500 shares of Class B Common Stock into 500 shares of Class A Common Stock at a price of $0.
• Concurrently, Crain sold 500 shares of Class A Common Stock at a price of $196.22 per share.
• Following these transactions, Crain directly owns 0 shares of Class A Common Stock and 0 shares of Class B Common Stock.
• Crain indirectly beneficially owns 53,438 shares of Class B Common Stock through the HL Voting Trust, over which he retains investment control and dispositive power.

Sentiment

Score: 5

Explanation: Neutral. The filing reports a routine, pre-planned insider stock sale, which is common for executives and does not inherently signal positive or negative company performance.

Positives

• The sale was conducted under a pre-arranged Rule 10b5-1 trading plan, indicating a planned, non-discretionary transaction rather than an immediate reaction to new information.

Negatives

• An insider sale, even if pre-planned, reduces the insider's direct equity stake in the company.

Future Outlook

NA

Industry Context

This is a routine insider transaction filing for an investment bank executive. Such pre-planned sales are common for executives managing personal finances and diversifying portfolios, and do not inherently reflect on the broader investment banking industry trends.

Related Party Transactions

• The reporting person indirectly holds 53,438 shares of Class B Common Stock through the HL Voting Trust, over which they retain investment control and dispositive power. This arrangement is disclosed as part of their beneficial ownership.

Stakeholder Impact

• Shareholders: A minor reduction in direct insider ownership, but the pre-planned nature mitigates negative sentiment. The indirect ownership through the voting trust remains significant.
• Employees: No direct impact.
• Customers/Suppliers/Creditors: No direct impact.

Key Dates

Recommendation

This Form 4 reports a routine, pre-planned insider sale by the General Counsel. While it reduces direct insider ownership, the transaction was executed under a Rule 10b5-1 plan, suggesting it's for personal financial management rather than a reaction to new material information. It does not provide new fundamental information about Houlihan Lokey's business or prospects to warrant a change in investment thesis. Therefore, a 'hold' recommendation is appropriate, maintaining current positions while monitoring future company developments.

Keywords

Houlihan Lokey, HLI, Christopher M. Crain, Insider Trading, Form 4, Stock Sale, 10b5-1 Plan, General Counsel, Equity Transaction, Class A Common Stock, Class B Common Stock