DLH Holdings Corp. (NASDAQ:DLHC) Sees Significant Increase in Short Interest

Key Points

• Short interest in DLH Holdings surged in June, rising 97.4% to 76,028 shares as of June 30 from 38,519 shares on June 15. That still represents only 0.6% of the float, with a low days-to-cover ratio of 0.3.
• Insider buying continued as major shareholder Mink Brook Asset Management bought 5,000 shares at $5.13 each on July 9. Insiders have purchased 168,376 shares worth about $910,954 over the past 90 days.
• DLH remains under pressure on fundamentals and analyst sentiment after missing EPS estimates in its latest quarterly report, while analysts currently hold a consensus rating of “Reduce.” The stock was recently trading near $5.38, close to its 52-week low of $5.03.

DLH Holdings Corp. (NASDAQ:DLHC - Get Free Report) saw a large increase in short interest in the month of June. As of June 30th, there was short interest totaling 76,028 shares, an increase of 97.4% from the June 15th total of 38,519 shares. Based on an average daily volume of 254,487 shares, the days-to-cover ratio is presently 0.3 days. Currently, 0.6% of the company's shares are sold short.

Insider Activity

In other DLH news, major shareholder Mink Brook Asset Management Ll bought 5,000 shares of the company's stock in a transaction that occurred on Thursday, July 9th. The stock was purchased at an average cost of $5.13 per share, for a total transaction of $25,650.00. Following the completion of the purchase, the insider owned 2,149,073 shares of the company's stock, valued at $11,024,744.49. This trade represents a 0.23% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Insiders acquired a total of 168,376 shares of company stock worth $910,954 in the last 90 days. 12.80% of the stock is owned by company insiders.

Institutional Trading of DLH

Several large investors have recently added to or reduced their stakes in the stock. North Star Investment Management Corp. acquired a new position in shares of DLH during the first quarter worth about $786,000. Sandia Investment Management LP acquired a new stake in shares of DLH in the fourth quarter valued at about $197,000. Rothschild Wealth LLC acquired a new stake in shares of DLH in the fourth quarter valued at about $928,000. Mink Brook Asset Management LLC raised its holdings in shares of DLH by 2.3% during the 4th quarter. Mink Brook Asset Management LLC now owns 2,625,847 shares of the business services provider's stock valued at $14,836,000 after buying an additional 59,498 shares during the period. Finally, State Street Corp raised its holdings in shares of DLH by 28.7% during the 4th quarter. State Street Corp now owns 59,609 shares of the business services provider's stock valued at $337,000 after buying an additional 13,300 shares during the period. 67.25% of the stock is currently owned by institutional investors and hedge funds.

DLH Stock Up 2.5%

Shares of NASDAQ:DLHC opened at $5.38 on Thursday. The stock has a 50-day simple moving average of $5.46 and a 200-day simple moving average of $5.68. The stock has a market capitalization of $77.96 million, a P/E ratio of -17.93 and a beta of 1.45. DLH has a 1 year low of $5.03 and a 1 year high of $8.10. The company has a debt-to-equity ratio of 1.00, a quick ratio of 0.87 and a current ratio of 0.87.

DLH (NASDAQ:DLHC - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The business services provider reported ($0.17) EPS for the quarter, missing the consensus estimate of ($0.16) by ($0.01). DLH had a negative net margin of 1.53% and a negative return on equity of 4.00%. The business had revenue of $59.27 million during the quarter, compared to analysts' expectations of $58.00 million. Equities analysts forecast that DLH will post -0.59 earnings per share for the current year.

Wall Street Analyst Weigh In

DLHC has been the subject of a number of recent analyst reports. Zacks Research upgraded shares of DLH from a "strong sell" rating to a "hold" rating in a report on Monday, April 13th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of DLH in a research report on Monday, April 20th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, DLH presently has a consensus rating of "Reduce".

DLH Company Profile

DLH Holdings Corp. NASDAQ: DLHC is a provider of mission-driven professional services primarily to federal government agencies and select commercial clients. The company designs and delivers tailored solutions across a range of critical mission areas, including program and project management, consulting, technical assistance, and administrative support. Through its Healthcare Solutions offerings, DLH also specializes in supporting clinical and allied health staffing needs for federal health agencies and health systems.

Operating under its Federal Solutions segment, DLH partners with agencies such as the Department of Veterans Affairs, Department of Defense, Department of Homeland Security, and the Department of Health and Human Services.

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