DLH (NASDAQ:DLHC) Stock Crosses Below 200 Day Moving Average - Here's What Happened

Key Points

• DLH shares fell below their 200-day moving average, trading as low as $3.99 versus the $5.05 average, and last changed hands at $4.00.
• The company reported a significant quarterly miss, posting an EPS loss of $1.16 compared with the $0.17 loss analysts expected, while revenue of $44.23 million fell short of the $50 million estimate.
• Analyst sentiment remains mixed, resulting in a consensus “Hold” rating. Meanwhile, insiders purchased shares recently, including a 199,099-share acquisition by Mink Brook Asset Management.

DLH Holdings Corp. (NASDAQ:DLHC - Get Free Report) passed below its two hundred day moving average during trading on Thursday. The stock has a two hundred day moving average of $5.05 and traded as low as $3.99. DLH shares last traded at $4.00, with a volume of 2,449 shares changing hands.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on DLHC. Noble Financial reissued an "outperform" rating on shares of DLH in a report on Friday, July 31st. Weiss Ratings restated a "sell (d)" rating on shares of DLH in a research note on Friday, July 17th. Finally, Zacks Research upgraded shares of DLH from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 29th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Hold".

DLH Trading Down 0.7%

The stock has a market capitalization of $57.96 million, a P/E ratio of -2.70 and a beta of 1.52. The company has a current ratio of 0.67, a quick ratio of 0.67 and a debt-to-equity ratio of 1.13. The business has a 50-day moving average price of $4.17 and a two-hundred day moving average price of $5.05.

DLH (NASDAQ:DLHC - Get Free Report) last released its 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 company had revenue of $44.23 million for the quarter, compared to analyst estimates of $50.00 million. DLH had a negative return on equity of 10.42% and a negative net margin of 8.51%. On average, analysts expect that DLH Holdings Corp. will post -0.76 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, major shareholder Mink Brook Asset Management Ll acquired 199,099 shares of DLH stock in a transaction on Thursday, October 1st. The shares were purchased 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 represents a 28.68% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Insiders have bought a total of 226,981 shares of company stock worth $865,355 over the last three months. Corporate insiders own 12.80% of the company's stock.

Institutional Trading of DLH

A hedge fund recently bought a new stake in DLH stock. North Star Investment Management Corp. acquired a new stake in DLH Holdings Corp. (NASDAQ:DLHC - Free Report) during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 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 at the end of the most recent reporting period. 67.25% of the stock is currently owned by institutional investors and hedge funds.

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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