Form 4: Houlihan Lokey GC Sells Shares via 10b5-1 Plan

Houlihan Lokey's General Counsel, Christopher M. Crain, converted and sold 500 shares of Class A Common Stock for $174.17 per share under a pre-arranged trading plan.

Summary

• Christopher M. Crain, General Counsel of Houlihan Lokey, Inc., reported transactions on January 2, 2026.
• Converted 500 shares of Class B Common Stock into 500 shares of Class A Common Stock.
• Subsequently sold 500 shares of Class A Common Stock at a price of $174.17 per share.
• These transactions were executed under a Rule 10b5-1 trading plan adopted on November 18, 2024.
• Following these transactions, Crain directly owns 0 Class A Common Stock but indirectly holds 51,738 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. This is a routine disclosure of an insider stock transaction executed under a pre-planned 10b5-1 plan, which is a common practice 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 transaction rather than an immediate reaction to new information.

Negatives

• An insider (General Counsel) sold shares, which can sometimes be perceived negatively by the market, although this transaction was pre-planned.

Future Outlook

No specific future outlook or guidance is provided in this Form 4 filing, as it primarily reports an insider stock transaction.

Industry Context

Insider sales, especially those executed under Rule 10b5-1 plans, are common in the financial services industry. For an investment bank like Houlihan Lokey, such transactions by executives are part of routine compensation and personal liquidity management, and the use of a 10b5-1 plan demonstrates adherence to compliance best practices.

Comparison to Industry Standards

• The use of a Rule 10b5-1 trading plan is a standard practice for corporate insiders to sell shares in a pre-arranged, compliant manner, mitigating concerns about trading on material non-public information. This aligns with best practices for insider trading compliance in the financial industry.

Related Party Transactions

• Christopher M. Crain indirectly holds 51,738 shares of Class B Common Stock through the HL Voting Trust, over which he retains investment control and dispositive power.

Stakeholder Impact

• Shareholders: Minor impact. A small, pre-planned sale by an executive typically does not significantly alter shareholder perception or company valuation, as it is a routine liquidity event.

Key Dates

Recommendation

This Form 4 filing details a routine, pre-planned sale of a relatively small number of shares by an executive under a Rule 10b5-1 plan. Such transactions are common for liquidity and compensation purposes and do not typically reflect a change in the company's fundamental outlook or performance. Therefore, it provides no new information that would warrant a change from a 'hold' recommendation based solely on this filing.

Keywords

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