Hamilton Lane (HLNE) AI Stock Analysis

• Market Cap: $5.55B
• Dividend Yield: 1.52%
• Average Volume (3M): 825.45K
• Price to Earnings (P/E): 21.3
• Beta (1Y): 1.08
• Revenue Growth: 13.01%
• EPS Growth: 21.96%
• Country: US
• Employees: 700
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.55
• Shares Outstanding: 43,938,663
• 10 Day Avg. Volume: 852,891
• 30 Day Avg. Volume: 825,447
• PEG Ratio: 0.59
• Price to Book (P/B): 8.32
• Price to Sales (P/S): 8.37
• P/FCF Ratio: 20.68
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 7.31
• Enterprise Value/Gross Profit: 10.55
• Enterprise Value/Ebitda: 12.50
• 1Y Price Target: $178.40
• Price Target Upside: 79.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.94
• Revenue Forecast (FY): $768.00M

• Rating: 73 Outperform
• Price Target: $105.00 ▲(5.43% Upside)
• Action: Reiterated Date: 02/21/26
• Date: Action: Reiterated 02/21/26

The score is driven primarily by strong underlying financial performance (high margins and strong cash conversion) and a positive earnings narrative around fundraising/AUM momentum and fee-related earnings growth. These are partially offset by clearly bearish technical conditions (price below key moving averages with negative MACD) and only moderate valuation support (P/E ~22 with a modest yield), while the new buyback provides a smaller incremental positive.

Positive Factors

Strong Profitability

Sustained high margins indicate durable fee economics and operating leverage in private markets management. Higher EBIT and net margins support reinvestment, dividends and buybacks, making earnings more resilient to moderate AUM swings and helping preserve long-term cash generation.

Fee‑Earning AUM & Fee Rate Expansion

Growing fee-earning AUM and a higher blended fee rate raise recurring management fee revenue and margin sustainability. This structural mix shift toward specialized funds and Evergreen products supports predictable fees and reduces sensitivity to short-term exit timing over multiple years.

Guardian Strategic Partnership

A multi-year mandate with predictable annual commitments materially enlarges the firm's fee base and pipeline for Evergreen and co-investment allocations. Long-duration client commitments improve revenue visibility and deepen client relationships, strengthening fundraising and distribution channels.

Negative Factors

Expense Growth

Rising compensation and G&A costs can erode operating leverage in the asset manager model if not matched by fee growth. Persistent expense inflation would compress FRE margins over time and reduce incremental earnings sensitivity to AUM gains, pressuring long-term profitability.

Revenue & Cash‑Flow Volatility

Private markets revenue depend on timing of realizations and incentive fees, producing uneven multi-year cash flow. This makes earnings lumpy, complicates planning, and can undermine short-to-medium-term dividend and buyback consistency when exits or carry realizations delay.

Balance Sheet Data Inconsistency

Unclear debt reporting introduces uncertainty about true leverage and liquidity buffers. Accurate debt visibility is essential for assessing resilience to market stress; data inconsistencies increase governance and forecast risk for capital allocation decisions and covenant management.

Hamilton Lane Business Overview & Revenue Model

Company Description

Hamilton Lane Incorporated is an investment firm specializing in direct and fund of fund investments. It provides following services: separate accounts (customized to each individual client and structured as single client vehicles); specialized strategies (fund-of-funds, secondaries, co-investments, taft-hartley, distribution management); advisory relationships (including due diligence, strategic portfolio planning, monitoring and reporting services); and reporting and analytics solutions. For direct investments, the firm invests in early, mid and late venture, mature companies, growth equity, emerging growth, distressed debt, later stage, turnarounds, bridge financing, mezzanine financing, and buyouts in middle market companies. For fund of fund investments, it invests in mezzanine, venture capital, private equity, turnaround, secondary investments, real estate, and special situation funds. The firm invests in real estate investments. It also invest in technology, healthcare, education, natural resources, energy and essential consumer goods sectors, cleantech, and environment, community development, and financial empowerment. It invests in private equity markets in North America, Latin America, United States, Western Europe, Middle East, Africa, United Kingdom, Asia, Japan, and Australia. The firm prefer to invest $1 million to $100 million in companies. It prefers to have majority stake in companies. Hamilton Lane Incorporated was founded in 1991 and is based in Conshohocken, Pennsylvania with additional offices across Europe, North America, and Asia.

How the Company Makes Money

Hamilton Lane primarily makes money by earning fees for managing private markets assets on behalf of clients. Its core revenue stream is management fees (asset-based fees) charged on assets under management (AUM) across commingled funds and separately managed accounts; these fees are typically earned periodically and are tied to committed capital and/or invested net asset value depending on the product structure. A second major revenue stream is performance-based compensation, commonly referred to as incentive fees or carried interest, which is earned when investment vehicles exceed contractual return hurdles or profit-sharing thresholds; these amounts are generally more variable and depend on realized and/or eligible investment gains under the applicable fund agreements. The company also generates revenue from advisory and other services (for example, advising institutional programs or providing administrative/structuring-related services), which are generally earned as project-based or retainer-style fees. In addition, Hamilton Lane can earn investment income from its own balance-sheet investments, including co-investments and stakes alongside client vehicles; this income depends on the performance and realization of those investments rather than fee schedules. Key factors influencing earnings include growth and retention of AUM (driving management fees), investment performance and realizations (driving incentive fees and investment income), fundraising activity, and market conditions in private markets that affect valuations, deployment pace, and exits.

Hamilton Lane Financial Statement Overview

Summary

Strong profitability and cash generation: TTM gross margin ~73%, net margin ~33%, EBIT margin ~58%, and free cash flow ~97% of net income. Offsets include uneven multi-year revenue/cash-flow trends and a noted TTM debt data inconsistency that adds some caution to balance-sheet interpretation.

Income Statement

HLNE shows strong profitability for an asset manager, with TTM (Trailing-Twelve-Months) gross margin ~73% and net margin ~33%, alongside very healthy operating profitability (TTM EBIT margin ~58%). Revenue growth is positive in TTM (~4.3%) but has been uneven over the last several years, and margins have also fluctuated (notably an unusually high net margin in 2022), which tempers the score despite the currently strong earnings profile.

Balance Sheet

The balance sheet looks solid with equity building over time (from ~$238M in 2021 to ~$877M in TTM) and strong returns on equity (~31% TTM). Leverage appears moderate based on the debt-to-equity ratio sitting around ~0.5 recently (improving from ~1.0 in 2021). A key watch item is data consistency: TTM shows total debt at 0 while the debt-to-equity ratio remains ~0.53, suggesting debt may not be fully reflected in that specific TTM data point.

Cash Flow

Cash generation is strong and well-converted: TTM operating cash flow (~$367M) and free cash flow (~$364M) are close to net income, with free cash flow running at ~97% of net income. Free cash flow growth is positive in TTM (~4.45%) and cash flow has improved meaningfully versus 2024, though historical volatility (including a sharp free cash flow decline in 2024) and an unusually high TTM operating cash flow coverage figure indicate results can swing period to period.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	763.40M	712.96M	553.84M	528.75M	367.92M	341.63M
Gross Profit	528.54M	504.74M	387.45M	379.44M	259.52M	205.32M
EBITDA	446.22M	384.89M	301.02M	258.67M	323.81M	159.86M
Net Income	233.50M	217.42M	140.86M	109.12M	145.99M	98.02M
Balance Sheet
Total Assets	2.17B	1.69B	1.27B	1.14B	1.29B	1.14B
Cash, Cash Equivalents and Short-Term Investments	340.19M	277.27M	114.63M	111.75M	72.17M	87.34M
Total Debt	359.84M	368.32M	275.19M	292.35M	253.57M	238.46M
Total Liabilities	844.76M	766.46M	595.24M	566.35M	557.46M	546.32M
Stockholders Equity	877.39M	717.28M	525.15M	415.44M	346.88M	238.13M
Cash Flow
Free Cash Flow	355.96M	288.66M	109.78M	221.84M	161.00M	168.52M
Operating Cash Flow	363.50M	300.82M	120.85M	226.59M	169.52M	188.16M
Investing Cash Flow	-315.50M	-117.58M	-122.18M	177.91M	-70.49M	-421.78M
Financing Cash Flow	-28.25M	-19.62M	4.40M	-364.15M	-113.22M	270.66M

Hamilton Lane Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 99.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HLNE, the sentiment is Negative. The current price of 99.59 is below the 20-day moving average (MA) of 102.51, below the 50-day MA of 123.84, and below the 200-day MA of 134.11, indicating a bearish trend. The MACD of -6.38 indicates Negative momentum. The RSI at 37.02 is Neutral, neither overbought nor oversold. The STOCH value of 57.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HLNE.

Hamilton Lane Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HLNE	73 Outperform	$5.55B	21.34	29.38%	1.52%	13.01%	21.96%
SEIC	73 Outperform	$9.51B	14.01	30.29%	1.18%	9.33%	33.17%
AMG	72 Outperform	$7.42B	11.47	22.04%	0.01%	1.08%	8.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MAIN	65 Neutral	$4.96B	10.94	16.94%	7.17%	11.60%	9.38%
FSK	56 Neutral	$2.79B	-9.10	0.18%	18.52%	-13.67%	-48.49%
STEP	51 Neutral	$5.57B	-10.33	783.65%	2.17%	92.02%	-1386.34%

Hamilton Lane Corporate Events

Hamilton Lane Initiates New $50 Million Share Repurchase

Hamilton Lane Incorporated, a private markets-focused investment manager with publicly traded Class A common stock, has an authorized stock repurchase framework that allows it to buy back up to 6% of its outstanding Class A shares, capped at $50 million. The program, originally approved in November 2018 and most recently re-approved in December 2024, supports the firm’s broader capital management strategy and can influence share liquidity and valuation.

On February 20, 2026, Hamilton Lane began repurchasing shares under this Stock Repurchase Program, having not executed any buybacks under it before that date, leaving the full authorization available at commencement. The repurchases may occur via open market purchases or privately negotiated transactions, with the total number of shares ultimately repurchased dependent on market conditions and other factors, potentially affecting existing shareholders and the company’s capital structure.

The most recent analyst rating on (HLNE) stock is a Buy with a $150.00 price target. To see the full list of analyst forecasts on Hamilton Lane stock, see the HLNE Stock Forecast page.