Cove Street Capital Cuts DLH Holdings Stake Below 5%

TL;DR

**Cove Street Capital just dumped a chunk of DLH Holdings, now owns less than 5%.**

AI Summary

Cove Street Capital, LLC, a Delaware-based investment firm, filed an SC 13G/A on January 18, 2024, announcing that they are no longer a beneficial owner of more than 5% of DLH Holdings Corp.'s common stock. This amendment, dated January 18, 2024, signifies a reduction in their stake in DLH Holdings Corp. (CUSIP 23335Q100). This matters to investors because a significant institutional investor has reduced its position, which could signal a change in their outlook on the company's future performance or valuation.

Why It Matters

When a major institutional investor like Cove Street Capital significantly reduces its holdings, it can indicate a loss of confidence or a strategic shift, potentially influencing other investors' perceptions of DLH Holdings Corp.

Risk Assessment

Risk Level: medium — A large institutional investor reducing its stake can create selling pressure or signal underlying concerns about the company's future.

Analyst Insight

An investor might consider researching the reasons behind Cove Street Capital's reduced stake in DLH Holdings Corp. and re-evaluating their own position, potentially looking for other indicators of the company's health or future prospects.

Key Numbers

• 5% — Beneficial Ownership Threshold (Cove Street Capital is no longer a beneficial owner of more than this percentage of DLH Holdings Corp. common stock.)
• 23335Q100 — CUSIP Number (Identifies the common stock of DLH Holdings Corp.)

Key Players & Entities

• Cove Street Capital, LLC (company) — filer, investment firm that reduced its stake
• DLH Holdings Corp. (company) — subject company, whose stock ownership was reported
• Merihan Tynan (person) — person authorized to receive notices for Cove Street Capital, LLC
• 5% (dollar_amount) — threshold for beneficial ownership reporting, which Cove Street Capital is now below
• January 18, 2024 (date) — date of the event requiring the filing and the filing date of the amendment

Forward-Looking Statements

• DLH Holdings Corp. stock may experience short-term selling pressure. (DLH Holdings Corp.) — medium confidence, target: 3 months
• Other institutional investors might re-evaluate their positions in DLH Holdings Corp. following Cove Street Capital's reduction. (DLH Holdings Corp.) — medium confidence, target: 6 months

FAQ

Key Financial Figures

• $0.001 — 4,733 shares of Common Stock, par value $0.001 per share, were outstanding as of May 3

Filing Documents

• dlhc01182024.htm (SC 13G/A) — 45KB
• 0001531612-24-000002.txt ( ) — 47KB

If this statement is filed pursuant

Item 3. If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a: (a) Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o). (b) Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c). (c) Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c). (d) Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C. 80a-8). (e) X An investment adviser in accordance with 240.13d-1(b)(1)(ii)(E); (f) An employee benefit plan or endowment fund in accordance with 240.13d-1(b)(1)(ii)(F); (g) A parent holding company or control person in accordance with 240.13d-1(b)(1)(ii)(G); (h) A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813); (i) A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3); (j) Group, in accordance with 240.13d-1(b)(1)(ii)(J).

Ownership

Item 4. Ownership. Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1. Cove Street Capital LLC (1) The shared dispositive power includes 381,700 Shares (as defined herein) in a separately managed account, which CSC (as defined herein) does not have any voting power over. (2) There were 13,824,733 shares of Common Stock, par value $0.001 per share, were outstanding as of May 3, 2023 filed Fom 10-Q. (a) Amount beneficially owned: 611,599 (b) Percent of class: 4.35% (c) Number of shares as to which the person has: (i) Sole power to vote or to direct the vote; 0 (ii) Shared power to vote or to direct the vote 375,846 (iii) Sole power to dispose or to direct the disposition of; 0 (iv) Shared power to dispose or to direct the disposition of 611,599 Instruction . For computations regarding securities which represent a right to acquire an underlying security see 240.13d-3(d)(1).

Ownership

Item 4. Ownership. Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1. Jeffrey Bronchick (3) Shares owned by Jeffrey Bronchick are in an SMA managed by Cove Street Capital LLC. (a) Amount beneficially owned: 611,599 (b) Percent of class: 4.35% (c) Number of shares as to which the person has: (i) Sole power to vote or to direct the vote; 3,042 (ii) Shared power to vote or to direct the vote 375,804 (iii) Sole power to dispose or to direct the disposition of; 3,042 (iv) Shared power to dispose or to direct the disposition of 608,557

Ownership

Item 4. Ownership. Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1. CSC Partners Fund, LP. (4) CSC Partners Fund, LP a Delaware limited partnership operated as a private investment partnership managed by Cove Street Capital LLC. These shares are also included in the Total Firm aggregate amount beneficially owned by reporting person of Cove Street Capital LLC. (a) Amount beneficially owned: 0 (b) Percent of class: 0.% (c) Number of shares as to which the person has: (i) Sole power to vote or to direct the vote; 0 (ii) Shared power to vote or to direct the vote 0 (iii) Sole power to dispose or to direct the disposition of; 0 (iv) Shared power to dispose or to direct the disposition of 0 Instruction . For computations regarding securities which represent a right to acquire an underlying security see 240.13d-3(d)(1).

Ownership of Five Percent or Less of a Class

Item 5. Ownership of Five Percent or Less of a Class. If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial Instruction . Dissolution of a group requires a response to this item.

Ownership of More than Five Percent

Item 6. Ownership of More than Five Percent on Behalf of Another Person. N/A

Identification and Classification of the

Item 7. Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company. N/A

Identification and Classification of Members of the Group

Item 8. Identification and Classification of Members of the Group. N/A

Notice of Dissolution of Group

Item 9. Notice of Dissolution of Group. N/A

Certification

Item 10. Certification. (a) The following certification shall be included if the statement is filed pursuant to 240.13d-1(b): By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect. CUSIP No. 23335Q100 13G Page 2 of 3 Pages After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. 01/18/2024 Date /s/ Merihan Tynan Signature Principal, Chief Compliance Name/Title CUSIP No. 946760105 13G Page 2 of 3 Pages After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. 01/18/2024 Date /s/ Jeffrey Bronchick Signature Principal, Portfolio Manager Name/Title

View Full Filing

View this SC 13G/A filing on SEC EDGAR