DLH (NASDAQ:DLHC) Cut to Strong Sell at Zacks Research

Zacks Research cut shares of DLH (NASDAQ:DLHC) from a hold rating to a strong sell rating in a research report released on Wednesday morning,Zacks.com reports.

Separately, Weiss Ratings reissued a “sell (d)” rating on shares of DLH in a research report on Wednesday, October 8th. Two research analysts have rated the stock with a Sell rating, According to data from MarketBeat.com, the stock currently has an average rating of “Sell”.

DLH Stock Performance

Shares of DLHC stock opened at $5.64 on Wednesday. The business has a fifty day moving average of $5.89 and a 200 day moving average of $5.70. DLH has a 1 year low of $2.72 and a 1 year high of $8.45. The company has a debt-to-equity ratio of 1.06, a current ratio of 1.00 and a quick ratio of 1.00. The firm has a market capitalization of $81.72 million, a price-to-earnings ratio of 56.41 and a beta of 1.56.

DLH (NASDAQ:DLHC) last announced its quarterly earnings data on Wednesday, December 10th. The business services provider reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.02 by ($0.08). DLH had a return on equity of 1.21% and a net margin of 0.40%.The firm had revenue of $81.16 million during the quarter, compared to analysts’ expectations of $83.50 million. During the same quarter in the previous year, the business earned $0.16 earnings per share. As a group, research analysts expect that DLH will post -0.13 earnings per share for the current year.

Insiders Place Their Bets

In related news, major shareholder Mink Brook Asset Management Ll purchased 44,208 shares of the firm’s stock in a transaction on Wednesday, December 17th. The stock was bought at an average cost of $5.50 per share, with a total value of $243,144.00. Following the completion of the acquisition, the insider owned 1,931,447 shares of the company’s stock, valued at $10,622,958.50. The trade was a 2.34% increase in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders purchased 59,498 shares of company stock worth $327,239 in the last three months. 15.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DLH

Institutional investors have recently bought and sold shares of the company. Bank of America Corp DE raised its position in DLH by 31.9% in the fourth quarter. Bank of America Corp DE now owns 7,679 shares of the business services provider’s stock valued at $62,000 after purchasing an additional 1,855 shares during the period. Vanguard Group Inc. grew its stake in shares of DLH by 1.2% in the third quarter. Vanguard Group Inc. now owns 494,618 shares of the business services provider’s stock worth $2,795,000 after acquiring an additional 5,735 shares in the last quarter. Minerva Advisors LLC raised its stake in shares of DLH by 0.5% in the third quarter. Minerva Advisors LLC now owns 1,116,802 shares of the business services provider’s stock valued at $6,310,000 after acquiring an additional 6,059 shares in the last quarter. Russell Investments Group Ltd. boosted its holdings in DLH by 19.5% in the first quarter. Russell Investments Group Ltd. now owns 60,329 shares of the business services provider’s stock valued at $244,000 after purchasing an additional 9,828 shares during the period. Finally, Nuveen LLC acquired a new position in DLH during the 1st quarter worth $44,000. 67.25% of the stock is currently owned by institutional investors and hedge funds.

Key Stores Impacting DLH

Here are the key news stories impacting DLH this week:

• Positive Sentiment: Mink Brook Asset Management, a major shareholder, bought 44,208 shares at an average $5.50 (≈$243K) and has made several recent buys — increasing its stake to ~1.93M shares. Large insider accumulation signals confidence from a top holder and can support the share price. Insider Buying: DLH
• Neutral Sentiment: Institutional ownership is high (~67%); Mink Brook is a sizable long-term holder. High institutional stakes can reduce float volatility but also concentrate selling risk if sentiment shifts. MarketBeat Institutional Snapshot
• Negative Sentiment: Zacks Research downgraded DLH from “hold” to “strong sell,” a development that can pressure retail/institutional sentiment and weigh on the share price. Zacks Downgrade
• Negative Sentiment: Noble Financial cut FY2026 earnings estimates and projects weaker EPS for the coming year; lower analyst forecasts increase downside risk and lower expectations for near-term profitability. Noble Financial Forecast
• Negative Sentiment: Recent quarterly results missed consensus (Q3/Q4 EPS and revenue shortfalls were reported), leaving the company more vulnerable to negative analyst revisions and investor selling. Earnings miss contributes to the current sell-side caution. Earnings & Analysts

About DLH

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.