DLH (NASDAQ:DLHC) Share Price Crosses Below 200-Day Moving Average - Here's Why

Key Points

• DLH shares fell below their 200-day moving average, trading as low as $3.59 versus the $4.98 average and last changing hands at $3.77.
• Analyst sentiment remains mixed, with ratings split among Buy, Hold and Sell; MarketBeat reports a consensus rating of Hold.
• DLH’s latest quarterly results significantly missed expectations, reporting a $1.16 loss per share versus a projected $0.17 loss and revenue of $44.23 million against a $50 million estimate. Insiders and institutional investors have nevertheless continued buying shares.

DLH Holdings Corp. (NASDAQ:DLHC - Get Free Report) passed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $4.98 and traded as low as $3.59. DLH shares last traded at $3.77, with a volume of 5,127 shares.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on DLHC. Noble Financial reaffirmed an "outperform" rating on shares of DLH in a research note on Friday, July 31st. Weiss Ratings reaffirmed a "sell (d)" rating on shares of DLH in a research note on Thursday, October 15th. Finally, Zacks Research upgraded shares of DLH from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 29th. One equities research analyst has rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of "Hold".

DLH Stock Up 1.3%

The business's fifty day moving average is $4.06 and its two-hundred day moving average is $4.98. The company has a market cap of $54.64 million, a P/E ratio of -2.55 and a beta of 1.52. The company has a debt-to-equity ratio of 1.13, a quick ratio of 0.67 and a current ratio of 0.67.

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

Insiders Place Their Bets

In other DLH news, major shareholder Mink Brook Asset Management Ll purchased 199,099 shares of the business's stock in a transaction on Thursday, October 1st. The shares were bought at an average cost of $3.70 per share, for a total transaction of $736,666.30. Following the completion of the purchase, the insider directly owned 893,421 shares of the company's stock, valued at approximately $3,305,657.70. This trade represents a 28.68% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Insiders have bought a total of 226,511 shares of company stock worth $862,958 over the last ninety days. Company insiders own 12.80% of the company's stock.

Institutional Inflows and Outflows

A hedge fund recently bought a new stake in DLH stock. North Star Investment Management Corp. bought a new stake in DLH Holdings Corp. (NASDAQ:DLHC - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor bought 135,000 shares of the business services provider's stock, valued at approximately $786,000. North Star Investment Management Corp. owned about 0.93% of DLH as of its most recent filing with the Securities & Exchange Commission. Institutional investors and hedge funds own 67.25% of the company's stock.

About DLH

DLH Holdings Corp. NASDAQ: DLHC is a government services contractor that provides healthcare, technology, logistics and human-performance solutions to federal agencies. Through its operating businesses, the company supports mission-critical programs involving healthcare delivery, public health, biomedical research, defense and national security.

DLH's services include clinical and administrative healthcare support, scientific and technical services, data and information technology solutions, logistics management, and research support.

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