DHI Group (NYSE:DHX) Upgraded to Strong-Buy at Wall Street Zen

Key Points

• DHI Group was upgraded by Wall Street Zen from hold to strong-buy, though the broader analyst consensus remains Hold with an average target price of $6.50.
• The company recently reported better-than-expected quarterly results, posting EPS of $0.08 versus estimates of $0.04 and revenue of $29.69 million versus expectations of $29.05 million.
• DHI Group’s board approved a $10 million share repurchase program, which would allow it to buy back up to 12.6% of its outstanding shares and signals management may view the stock as undervalued.

DHI Group (NYSE:DHX - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "strong-buy" rating in a note issued to investors on Saturday.

Several other brokerages have also commented on DHX. Zacks Research lowered shares of DHI Group from a "strong-buy" rating to a "hold" rating in a report on Monday, April 6th. Weiss Ratings restated a "sell (d)" rating on shares of DHI Group in a report on Monday, April 20th. Barrington Research restated an "outperform" rating and issued a $10.00 price objective on shares of DHI Group in a report on Monday, May 4th. Finally, Lake Street Capital restated a "hold" rating and issued a $3.00 price objective on shares of DHI Group in a report on Wednesday. One investment analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average target price of $6.50.

DHI Group Stock Performance

Shares of DHX stock opened at $3.50 on Friday. The firm's 50 day moving average price is $2.70 and its 200-day moving average price is $2.16. The company has a debt-to-equity ratio of 0.36, a quick ratio of 0.44 and a current ratio of 0.44. DHI Group has a one year low of $1.44 and a one year high of $3.54. The firm has a market cap of $151.33 million, a P/E ratio of -70.05 and a beta of 1.11.

DHI Group (NYSE:DHX - Get Free Report) last issued its quarterly earnings data on Tuesday, May 5th. The technology company reported $0.08 EPS for the quarter, topping the consensus estimate of $0.04 by $0.04. DHI Group had a negative net margin of 1.78% and a positive return on equity of 11.60%. The firm had revenue of $29.69 million for the quarter, compared to analyst estimates of $29.05 million. As a group, equities research analysts predict that DHI Group will post 0.18 EPS for the current year.

DHI Group announced that its Board of Directors has approved a share buyback plan on Wednesday, February 4th that permits the company to repurchase $10.00 million in outstanding shares. This repurchase authorization permits the technology company to repurchase up to 12.6% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Institutional Investors Weigh In On DHI Group

A number of large investors have recently modified their holdings of DHX. Kennedy Capital Management LLC increased its position in shares of DHI Group by 117.5% in the 4th quarter. Kennedy Capital Management LLC now owns 1,828,888 shares of the technology company's stock valued at $2,835,000 after purchasing an additional 988,188 shares during the last quarter. Marshall Wace LLP increased its position in shares of DHI Group by 477.6% in the 4th quarter. Marshall Wace LLP now owns 585,360 shares of the technology company's stock valued at $907,000 after purchasing an additional 484,019 shares during the last quarter. Pacific Ridge Capital Partners LLC increased its position in shares of DHI Group by 10.6% in the 4th quarter. Pacific Ridge Capital Partners LLC now owns 3,438,349 shares of the technology company's stock valued at $5,329,000 after purchasing an additional 329,214 shares during the last quarter. Rothschild Wealth LLC purchased a new stake in shares of DHI Group in the 4th quarter valued at approximately $509,000. Finally, North Star Investment Management Corp. purchased a new stake in shares of DHI Group in the 1st quarter valued at approximately $801,000. 69.26% of the stock is owned by hedge funds and other institutional investors.

DHI Group Company Profile

DHI Group, Inc NYSE: DHX is a specialized professional recruitment and career development company that operates digital platforms connecting technology and security-cleared professionals with employers worldwide. Founded in 1990 as a niche job board for technology talent, the company completed its initial public offering in 2007 and trades on the New York Stock Exchange under the ticker symbol DHX.

The company's primary offerings include Dice.com, a careers platform designed for technology professionals, and ClearanceJobs, a specialized service catering to candidates holding U.S.

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