DLH (NASDAQ:DLHC) Shares Cross Below 200-Day Moving Average - Should You Sell?

Key Points

• DLH shares fell below their 200-day moving average, trading as low as $4.63 versus the $5.60 average, and last changed hands at $4.68.
• The company reported a significant quarterly miss, posting an adjusted loss of $1.16 per share versus expectations for a $0.17 loss, while revenue of $44.23 million also came in below the $50 million consensus.
• Analyst sentiment is mixed, with ratings split among Buy, Hold, and Sell and an overall “Hold” consensus. Insiders have recently purchased shares, while institutional investors own approximately 67.25% of the company.

DLH Holdings Corp. (NASDAQ:DLHC - Get Free Report) passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $5.60 and traded as low as $4.63. DLH shares last traded at $4.68, with a volume of 16,250 shares changing hands.

Analyst Ratings Changes

DLHC has been the topic of a number of research reports. Weiss Ratings restated a "sell (d)" rating on shares of DLH in a research report on Friday, July 17th. Noble Financial reiterated an "outperform" rating on shares of DLH in a research report on Friday, July 31st. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold".

DLH Stock Down 1.7%

The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.67 and a current ratio of 0.67. The stock's fifty day simple moving average is $5.26 and its two-hundred day simple moving average is $5.60. The stock has a market capitalization of $67.81 million, a P/E ratio of -3.16 and a beta of 1.47.

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

Insider Transactions at DLH

In related news, major shareholder Mink Brook Asset Management Ll bought 15,280 shares of the business's stock in a transaction on Friday, June 26th. The shares were purchased at an average cost of $5.28 per share, with a total value of $80,678.40. Following the acquisition, the insider owned 2,116,553 shares of the company's stock, valued at $11,175,399.84. This represents a 0.73% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Over the last three months, insiders acquired 116,277 shares of company stock worth $614,362. 12.80% of the stock is owned by company insiders.

Institutional Trading of DLH

Several institutional investors have recently added to or reduced their stakes in the stock. Bank of New York Mellon Corp acquired a new stake in DLH during the 2nd quarter valued at approximately $62,000. North Star Investment Management Corp. acquired a new stake in shares of DLH during the first quarter worth $786,000. Sandia Investment Management LP acquired a new stake in shares of DLH during the fourth quarter worth $197,000. Rothschild Wealth LLC bought a new position in DLH during the fourth quarter worth $928,000. Finally, Mink Brook Asset Management LLC lifted its holdings in DLH by 2.3% in the fourth 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. 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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