Form 4: Houlihan Lokey Co-Chairman Sells $8M in Class A Stock

Houlihan Lokey's Co-Chairman, Paul Eric Siegert, converted and sold 40,000 shares of Class A Common Stock for approximately $8 million.

Summary

• Paul Eric Siegert, Co-Chairman of Houlihan Lokey, Inc., reported transactions on August 27, 2025.
• He converted 40,000 shares of Class B Common Stock into 40,000 shares of Class A Common Stock.
• Immediately following the conversion, he sold all 40,000 shares of Class A Common Stock in open market sales.
• The shares were sold at a weighted average price of $199.95 per share, resulting in total proceeds of approximately $7,998,000.
• These transactions were made pursuant to a Rule 10b5-1(c) contract, instruction, or written plan.
• Following these transactions, Mr. Siegert's direct beneficial ownership of Class A Common Stock is 0 shares.
• He retains indirect beneficial ownership of 384,657 shares of Class B Common Stock held by the HL Voting Trust, over which he retains investment control and dispositive power.

Sentiment

Score: 4

Explanation: The sale of a significant number of shares by a Co-Chairman, even under a pre-planned Rule 10b5-1 arrangement, can be perceived negatively by the market, suggesting a potential lack of confidence or a move to diversify personal holdings.

Positives

• The sale was executed under a Rule 10b5-1 plan, indicating a pre-planned transaction rather than an immediate reaction to new, undisclosed information.

Negatives

• A significant sale of 40,000 shares by a high-ranking officer (Co-Chairman) could be interpreted as a lack of confidence by some investors, despite being pre-planned.
• The transaction reduced the reporting person's direct beneficial ownership of Class A Common Stock to zero.

Risks

• Potential negative market perception due to a high-ranking executive selling a substantial portion of their direct holdings, which could put downward pressure on the stock price.

Future Outlook

NA

Industry Context

NA

Stakeholder Impact

• Shareholders: May view the sale as a negative signal, potentially impacting the stock price due to perceived lack of insider confidence.
• Employees: No direct impact mentioned in the filing.

Key Dates

Recommendation

While a significant insider sale by a Co-Chairman could be a cause for concern, the transaction was executed under a pre-planned Rule 10b5-1 arrangement, which often indicates personal financial planning rather than a reaction to new, undisclosed negative information. Investors should monitor future insider activity and company fundamentals, but this single event does not fundamentally alter the investment thesis for Houlihan Lokey at this time.

Keywords

HLI, Houlihan Lokey, Paul Eric Siegert, Insider Trading, Form 4, Stock Sale, Executive Compensation, Investment Banking