DLH Holdings Story

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DLHC -- USA Stock  

USD 10.43  0.11  1.07%

It appears DLH Holdings may not recover as fast as we have hopped for as its price went down 6.69% today. The company's current daily volatility is 3.67 percent, with a beta of -0.5 and an alpha of 0.62 over DOW. As many millenniums are trying to avoid the current volatility, we are going to go over DLH Holdings Corp a little further to understand its historical price patterns. We will analyze why DLH Holdings investors may still consider a stake in the business.
Published over a month ago
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Are DLH Holdings (NASDAQ:DLHC) investors starting to panic?
DLH Holdings Corp currently holds roughly 658 K in cash with 17.59 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.05. Our trade advice tool can cross-verify current analyst consensus on DLH Holdings Corp and to analyze the company potential to grow for few more years.
Investing in DLH Holdings, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding DLH Holdings along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of DLH Holdings' stock 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 DLH Holdings utilizes 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 22.37 Million

DLH Holdings Correlation with Peers

Investors in DLH Holdings can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in DLH Holdings Corp. Diversification will allow for the same portfolio return with reduced risk. The correlation table of DLH Holdings and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities DLH Holdings is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage. Please check volatility of DLH Holdings for more details

Exercise or conversion by Kathryn Johnbull of 12000 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 exercise of employee stock options by Kathryn Johnbull, Chief Financial Officer, on 4th of January 2021. This event was filed by Dlh Holdings Corp with SEC on 2021-01-04. 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.

What is the case for DLH Holdings Investors

DLH Holdings appears to be somewhat reliable, given 1 month investment horizon. DLH Holdings Corp secures Sharpe Ratio (or Efficiency) of 0.16, which denotes the company had 0.16% of return per unit of return volatility over the last month. Our approach to predicting the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. By examining DLH Holdings Corp technical indicators you can today evaluate if the expected return of 0.59% is justified by implied risk. Please utilize DLH Holdings Corp mean deviation of 2.62, and Downside Deviation of 3.36 to check if our risk estimates are consistent with your expectations.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Will DLH Holdings investors go out of control after another slip?

Risk adjusted performance is down to 0.18. It may suggest a possible volatility slip. 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.

Our Final Takeaway

Whereas some other entities in the specialty business services industry are either recovering or due for a correction, DLH Holdings may not be performing as strong as the other in terms of long-term growth potentials. To conclude, as of the 6th of December 2020, we believe DLH Holdings is currently overvalued. It almost neglects market trends and projects low odds of distress in the next two years. Our concluding 30 days buy-sell recommendation on the company is Hold.

About Contributor

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 Vlad Skutelnik 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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