10% Owner Of DLH Holdings Makes $121K Buy

Mink Brook Asset Management LLC, 10% Owner at DLH Holdings DLHC, reported an insider buy on June 9, according to a new SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Monday unveiled that LLC made a notable purchase of 22,303 shares of DLH Holdings, valuing at $121,996.

During Tuesday's morning session, DLH Holdings shares down by 0.0%, currently priced at $5.47.

About DLH Holdings

DLH Holdings Corp is a provider of technology-enabled business process outsourcing and program management solutions in the United States. The company offers services to several government agencies which include the Department of Veteran Affairs. The company is engaged in public health, performance evaluation, and health operations to solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, analytics, cloud-based applications, telehealth systems, and others.

Unraveling the Financial Story of DLH Holdings

Decline in Revenue: Over the 3 months period, DLH Holdings faced challenges, resulting in a decline of approximately -11.68% in revenue growth as of 31 March, 2025. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 20.18%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): DLH Holdings's EPS reflects a decline, falling below the industry average with a current EPS of 0.06.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.44.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 14.39 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.21, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 6.28, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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The Impact of Insider Transactions on Investments

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Exploring Key Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of DLH Holdings's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.