DLH Holdings Stock Story

DLHC -  USA Stock  

USD 17.83  0.02  0.11%

With so much uncertainty about the industrials space, it is fair to go over DLH Holdings Corp against current market trends. As we have suggested previously, DLH Holdings is beginning its slip as investors shift to be more bearish due to the increased sector volatility. The returns on the market and returns on DLH Holdings appear slightly correlated for the last few months. Strong technical indicators of the company may also suggest signals of long term gains for DLH Holdings investors. DLH Holdings Corp is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 6th of December 2021.
Published over a month ago
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Our current technical analysis of DLH Holdings Corp (NASDAQ:DLHC)
The company's average rating is Strong Buy from 2 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on DLH Holdings market sentiment investors' perception of the future value of DLH Holdings. Let us look at a few aspects of DLH Holdings technical analysis.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of DLH Holdings Corp. In general, we focus on analyzing DLH Holdings stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build DLH Holdings's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of DLH Holdings's intrinsic value. In addition to deriving basic predictive indicators for DLH Holdings, we also check how macroeconomic factors affect DLH Holdings price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of DLH Holdings' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of DLH Holdings in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as DLH Holdings. Your research has to be compared to or analyzed against DLH Holdings' peers to derive any actionable benefits. When done correctly, DLH Holdings' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in DLH Holdings Corp.

How important is DLH Holdings's Liquidity

DLH Holdings financial leverage refers to using borrowed capital as a funding source to finance DLH Holdings Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. DLH Holdings financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between DLH Holdings's total debt and its cash.

How does DLH Holdings utilize its cash?

To perform a cash flow analysis of DLH Holdings, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash DLH Holdings is receiving and how much cash it distributes out in a given period. The DLH Holdings cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
DLH Holdings Net Cash Flow from Operations is projected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at 52.51 Million

Acquisition by Ferebee Galeel Maliek of 250000 shares of DLH Holdings subject to Rule 16b-3

Legal trades by DLH Holdings insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
DLH Holdings insider trading alert for grant of employee stock options by Ferebee Galeel Maliek, Chief Human Resources Officer, on 10th of November 2021. This event was filed by Dlh Holdings Corp with SEC on 2021-11-10. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Closer look at DLH Holdings Variance

DLH Holdings Corp has current Variance of 14.03. Variance is another measure of security risk that shows the amount of dispersion of equity returns around their mean value. Variance is calculated as the average squared deviations from the mean. Evaluating a set of investment alternatives one can use variance to help determine the volatility when purchasing a specific security. Similar to Standard Deviation, the variance is a measure of how far a set of numbers is spread out around its mean.

Variance is also a measure of stock volatility and can help determine the risk an investor might take on when purchasing a specific security. A relatively big variance indicates that the daily prices or returns are far from the mean and a small variance indicates that they are located around the mean.

Variance 
 = 
SUM(RET DEV)2 
 = 
14.03
SUM = Summation notation
RET DEV = Actual returns deviation over selected period
N = Number of points for the period
Let's now compare DLH Holdings Variance to its closest peers:
DLHC
BV
DSS
KODK
ACTG
DLHC14.02800048016059
BV5.4
DSS13.44
KODK5.89
ACTG11.41

Over 3 percent slip for DLH Holdings. What does it mean for investors?

The expected short fall is down to -2.9 as of today. DLH Holdings Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect DLH Holdings Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of DLH Holdings future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure DLH Holdings' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact DLH Holdings' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

DLH Holdings Implied Volatility

DLH Holdings' implied volatility exposes the market's sentiment of DLH Holdings Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if DLH Holdings' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that DLH Holdings stock will not fluctuate a lot when DLH Holdings' options are near their expiration.

Our Conclusion on DLH Holdings

Whereas few other entities in the specialty business services industry are either recovering or due for a correction, DLH Holdings may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 5th of December 2021, our analysis shows that DLH Holdings follows the market closely. The company is undervalued and projects low odds of distress for the next 2 years. Our up-to-date 90 days buy-hold-sell recommendation on the company is Strong Buy.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of DLH Holdings Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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