Disclosed in the latest SEC filing, a significant insider purchase on June 17, involves Mink Brook Asset Management LLC, 10% Owner at DLH Holdings DLHC.
What Happened: LLC demonstrated confidence in DLH Holdings by purchasing 38,937 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the transaction is $211,763.
The latest market snapshot at Wednesday morning reveals DLH Holdings shares down by 0.0%, trading at $5.46.
Get to Know DLH Holdings Better
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.
Financial Insights: DLH Holdings
Negative Revenue Trend: Examining DLH Holdings’s financials over 3 months reveals challenges. As of 31 March, 2025, the company experienced a decline of approximately -11.68% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Profitability Metrics:
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Gross Margin: The company shows a low gross margin of 20.18%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): DLH Holdings’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.06.
Debt Management: DLH Holdings’s debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.44.
Assessing Valuation Metrics:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 14.37 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.21 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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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 exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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The Importance of Insider Transactions
Insider transactions shouldn’t be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In the context of legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Essential Transaction Codes Unveiled
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.
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