DLH (NASDAQ:DLHC) Lowered to Strong Sell Rating by Zacks Research

Key Points

• Zacks Research downgraded DLH from “hold” to “strong sell,” while the broader analyst consensus remains “Reduce,” with one Buy rating and two Sell ratings.
• DLH reported a substantial quarterly loss of $1.16 per share, missing the expected loss of $0.17, while revenue of $44.23 million fell short of the $50 million consensus estimate.
• The stock opened at $4.56, near its 52-week low of $4.45, with a market capitalization of approximately $66.1 million; insiders have recently increased their holdings, and institutional investors own 67.25% of shares.

DLH (NASDAQ:DLHC - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday,Zacks.com reports.

DLHC has been the topic of a number of other research reports. Weiss Ratings reissued a "sell (d)" rating on shares of DLH in a research note on Friday, July 17th. Noble Financial reissued an "outperform" rating on shares of DLH in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Buy rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of "Reduce".

DLH Stock Performance

DLH stock opened at $4.56 on Tuesday. The company has a market cap of $66.07 million, a PE ratio of -3.08 and a beta of 1.47. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 1.13. DLH has a 1 year low of $4.45 and a 1 year high of $8.10. The company's 50-day moving average is $5.16 and its two-hundred day moving average is $5.55.

DLH (NASDAQ:DLHC - Get Free Report) last posted its quarterly earnings results on Wednesday, July 29th. The business services provider reported ($1.16) earnings per share for the quarter, missing analysts' consensus estimates of ($0.17) by ($0.99). DLH had a negative return on equity of 10.42% and a negative net margin of 8.51%.The business had revenue of $44.23 million for the quarter, compared to the consensus estimate of $50.00 million. Equities analysts anticipate that DLH will post -0.76 earnings per share for the current year.

Insider Activity

In other news, major shareholder Mink Brook Asset Management Ll acquired 15,280 shares of the stock in a transaction that occurred on Friday, June 26th. The stock was acquired at an average price of $5.28 per share, for a total transaction of $80,678.40. Following the transaction, the insider directly owned 2,116,553 shares in the company, valued at approximately $11,175,399.84. This represents a 0.73% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Over the last three months, insiders have acquired 108,343 shares of company stock valued at $569,431. 12.80% of the stock is owned by insiders.

Institutional Investors Weigh In On DLH

Several large investors have recently modified their holdings of the business. Jane Street Group LLC bought a new position in shares of DLH during the 4th quarter valued at about $58,000. Bank of New York Mellon Corp acquired a new stake in DLH during the 2nd quarter worth approximately $62,000. Bank of America Corp DE lifted its stake in DLH by 31.9% in the fourth quarter. Bank of America Corp DE now owns 7,679 shares of the business services provider's stock valued at $62,000 after buying an additional 1,855 shares in the last quarter. Qube Research & Technologies Ltd acquired a new position in shares of DLH in the second quarter valued at approximately $73,000. Finally, Strs Ohio bought a new stake in shares of DLH during the first quarter worth $185,000. 67.25% of the stock is currently owned by institutional investors.

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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