Hamilton Lane (HLNE) AI Stock Analysis

• Market Cap: $5.99B
• Dividend Yield: 1.52%
• Average Volume (3M): 691.18K
• Price to Earnings (P/E): 19.3
• Beta (1Y): 1.09
• 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: 1,073,916
• 30 Day Avg. Volume: 691,185
• 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: 7.88
• Enterprise Value/Gross Profit: 11.38
• Enterprise Value/Ebitda: 13.48
• 1Y Price Target: $178.40
• Price Target Upside: 66.15% 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: $126.00 ▲(17.35% 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

High margins and cash conversion

Sustained high operating margins and near‑one‑for‑one free cash flow conversion indicate durable profitability and internal funding capacity. That supports dividends, reinvestment in products/tech, and flexible capital allocation over the next several quarters to years.

Fundraising momentum and fee‑earning AUM growth

Consistent net inflows across specialized funds and a fast‑growing Evergreen platform expand recurring fee base and reduce revenue cyclicality. A rising fee-earning AUM mix with higher fee rates supports sustainable fee-related revenue and fee-related earnings growth.

Strategic long‑term Guardian partnership

A multi-year mandate from Guardian provides predictable, durable capital commitments and product placement that should translate into steady management fees, scaled distribution economics, and cross‑selling opportunities over a decade horizon.

Negative Factors

Expense growth pressures

Rising compensation and G&A increases can erode fee-related earnings margins if not offset by proportional fee growth. Persistent expense expansion risks reducing free cash flow growth and constraining capital available for buybacks or product investments.

Uneven revenue and cash‑flow volatility

Historic swings in revenue and cash flow complicate forecasting and make earnings less predictable. For an asset manager reliant on fee stability, such volatility can impair consistent dividend or reinvestment planning and increases cyclicality risk over coming quarters.

Balance‑sheet reporting inconsistency on debt

Inconsistent debt reporting undermines clarity around leverage and liquidity. Hidden or mis‑timed liabilities can affect risk assessment, borrowing capacity, and capital allocation decisions, increasing governance and refinancing risks over a multi‑quarter horizon.

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 generates revenue primarily through management fees and performance fees from its investment products. The management fees are typically calculated as a percentage of assets under management (AUM), providing a steady income stream as the firm manages capital on behalf of its clients. Performance fees, on the other hand, are contingent on the successful performance of the funds, allowing the company to earn additional revenue when investments exceed certain return thresholds. Additionally, Hamilton Lane has established strategic partnerships with various financial institutions and investors, which can enhance its ability to attract capital and expand its investment offerings, further contributing to its earnings.

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: 107.37
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 107.37 is below the 20-day moving average (MA) of 119.04, below the 50-day MA of 134.06, and below the 200-day MA of 138.72, indicating a bearish trend. The MACD of -9.12 indicates Positive momentum. The RSI at 33.19 is Neutral, neither overbought nor oversold. The STOCH value of 32.15 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	$5.99B	19.26	30.59%	1.52%	13.01%	21.96%
SEIC	73 Outperform	$10.11B	14.69	29.38%	1.18%	9.33%	33.17%
AMG	72 Outperform	$8.28B	13.65	21.77%	0.01%	1.08%	8.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
MAIN	65 Neutral	$5.15B	10.36	17.04%	7.17%	11.60%	9.38%
FSK	56 Neutral	$3.07B	278.63	0.18%	18.52%	-13.67%	-48.49%
STEP	51 Neutral	$5.33B	-6.44	―	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.