It was revealed in a recent SEC filing that Mink Brook Asset Management LLC, 10% Owner at DLH Holdings DLHC made a noteworthy insider purchase on May 13,.
What Happened: LLC made a significant move by purchasing 22,569 shares of DLH Holdings as reported in a Form 4 filing with the U.S. Securities and Exchange Commission. The transaction’s total worth stands at $98,334.
DLH Holdings‘s shares are actively trading at $4.96, experiencing a up of 2.69% during Wednesday’s morning session.
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 Milestones: DLH Holdings’s Journey
Revenue Challenges: DLH Holdings’s revenue growth over 3 months faced difficulties. As of 31 March, 2025, the company experienced a decline of approximately -11.68%. This indicates 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.
Holistic Profitability Examination:
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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.
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Earnings per Share (EPS): DLH Holdings’s EPS is below the industry average. The company faced challenges with a current EPS of 0.06. This suggests a potential decline in earnings.
Debt Management: DLH Holdings’s debt-to-equity ratio is below the industry average. With a ratio of 1.44, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Insights into Valuation Metrics:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 12.71 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.18, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 6.04, DLH Holdings could be considered undervalued.
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
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The Importance of Insider Transactions
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Essential Transaction Codes Unveiled
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.
