Direct Digital (NASDAQ:DRCT) Announces Quarterly Earnings Results

Direct Digital (NASDAQ:DRCT) issued its quarterly earnings results on Tuesday. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.36), Zacks reports. The business had revenue of $41.01 million during the quarter, compared to analyst estimates of $66.02 million. Direct Digital had a net margin of 1.26% and a return on equity of 48.38%. During the same quarter last year, the firm posted $0.01 earnings per share. Direct Digital updated its FY 2024 guidance to EPS.

Direct Digital Price Performance

Shares of Direct Digital stock traded down $0.27 on Thursday, hitting $15.77. The company had a trading volume of 128,690 shares, compared to its average volume of 270,427. The business has a 50-day simple moving average of $18.53 and a 200-day simple moving average of $11.00. The company has a debt-to-equity ratio of 3.51, a current ratio of 1.16 and a quick ratio of 1.16. The company has a market cap of $225.04 million, a PE ratio of 114.57 and a beta of 8.14. Direct Digital has a 52 week low of $1.96 and a 52 week high of $35.88.

Analyst Upgrades and Downgrades

Several analysts have recently issued reports on the stock. Benchmark lowered their price objective on shares of Direct Digital from $30.00 to $23.00 and set a “buy” rating for the company in a research note on Wednesday. TheStreet lowered shares of Direct Digital from a “c” rating to a “d+” rating in a research note on Wednesday, February 14th. Noble Financial restated a “market perform” rating on shares of Direct Digital in a research report on Wednesday. Finally, Roth Mkm decreased their target price on shares of Direct Digital from $27.50 to $19.00 and set a “buy” rating for the company in a research report on Wednesday. One equities research analyst has rated the stock with a hold rating and three have issued a buy rating to the stock. According to data from MarketBeat, Direct Digital currently has an average rating of “Moderate Buy” and an average price target of $15.83.

Institutional Trading of Direct Digital

A number of large investors have recently added to or reduced their stakes in DRCT. UBS Group AG purchased a new stake in shares of Direct Digital in the 1st quarter valued at approximately $31,000. Renaissance Technologies LLC purchased a new stake in Direct Digital in the 3rd quarter worth approximately $30,000. State Street Corp purchased a new stake in Direct Digital in the 3rd quarter worth approximately $36,000. Geode Capital Management LLC lifted its position in Direct Digital by 31.5% in the 4th quarter. Geode Capital Management LLC now owns 16,555 shares of the company’s stock worth $40,000 after buying an additional 3,966 shares in the last quarter. Finally, Two Sigma Investments LP lifted its position in Direct Digital by 146.5% in the 3rd quarter. Two Sigma Investments LP now owns 28,760 shares of the company’s stock worth $64,000 after buying an additional 17,095 shares in the last quarter. 4.02% of the stock is currently owned by institutional investors.

Direct Digital Company Profile

Direct Digital Holdings, Inc operates as an end-to-end full-service programmatic advertising platform. The company's platform primarily focuses on providing advertising technology, data-driven campaign optimization, and other solutions to underserved and less efficient markets on both the buy- and sell-side of the digital advertising ecosystem.