DLH (NASDAQ:DLHC) Shares Pass Below 200 Day Moving Average - What's Next?

Key Points

• DLH shares fell below their 200-day moving average, trading as low as $3.82 versus the $5.40 average, while the stock’s market capitalization stood at approximately $55.35 million.
• Analyst sentiment is largely negative: Zacks Research downgraded the stock to “strong sell,” Weiss Ratings maintained a “sell” rating, and MarketBeat lists a consensus rating of “Reduce.”
• DLH reported a significant quarterly loss of $1.16 per share, missing expectations by $0.99, while revenue of $44.23 million also fell short of estimates; insiders nevertheless purchased 101,680 shares over the past three months.

DLH Holdings Corp. (NASDAQ:DLHC - Get Free Report)'s stock price passed below its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $5.40 and traded as low as $3.82. DLH shares last traded at $3.82, with a volume of 10,678 shares trading hands.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Weiss Ratings reaffirmed a "sell (d)" rating on shares of DLH in a report on Friday, July 17th. Noble Financial restated an "outperform" rating on shares of DLH in a research note on Friday, July 31st. Finally, Zacks Research downgraded DLH from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 18th. One equities research analyst has rated the stock with a Buy rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Reduce".

DLH Trading Down 3.3%

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 company's 50 day simple moving average is $4.82 and its two-hundred day simple moving average is $5.40. The stock has a market cap of $55.35 million, a price-to-earnings ratio of -2.58 and a beta of 1.44.

DLH (NASDAQ:DLHC - Get Free Report) last posted its earnings results on Wednesday, July 29th. The business services provider reported ($1.16) EPS for the quarter, missing the consensus estimate 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 analyst estimates of $50.00 million. Research analysts expect that DLH Holdings Corp. will post -0.76 EPS for the current fiscal year.

Insider Buying and Selling at DLH

In other news, major shareholder Mink Brook Asset Management Ll acquired 7,944 shares of the firm's stock in a transaction on Thursday, July 30th. The shares were purchased at an average cost of $4.96 per share, for a total transaction of $39,402.24. Following the transaction, the insider owned 2,166,724 shares of the company's stock, valued at approximately $10,746,951.04. This represents a 0.37% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders acquired 101,680 shares of company stock valued at $527,950 in the last three months. Company insiders own 12.80% of the company's stock.

Institutional Trading of DLH

Hedge funds and other institutional investors have recently modified their holdings of the company. Bank of New York Mellon Corp acquired a new position in shares of DLH during the 2nd quarter worth approximately $62,000. North Star Investment Management Corp. bought 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 during the fourth quarter worth $197,000. Rothschild Wealth LLC bought a new stake in shares of DLH during the 4th quarter valued at about $928,000. Finally, Mink Brook Asset Management LLC grew its position 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 worth $14,836,000 after buying an additional 59,498 shares during the period. Institutional investors and hedge funds own 67.25% of the company's stock.

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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