Direct Digital (NASDAQ:DRCT) Trading Down 5.7%

Direct Digital Holdings, Inc. (NASDAQ:DRCT)’s stock price fell 5.7% during mid-day trading on Tuesday . The stock traded as low as $3.40 and last traded at $3.47. 99,919 shares changed hands during mid-day trading, a decline of 53% from the average session volume of 213,643 shares. The stock had previously closed at $3.68.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on DRCT. TheStreet downgraded Direct Digital from a “c” rating to a “d+” rating in a research report on Wednesday, February 14th. Roth Mkm reduced their price objective on Direct Digital from $27.50 to $19.00 and set a “buy” rating on the stock in a research note on Wednesday, March 27th. Noble Financial reissued a “market perform” rating on shares of Direct Digital in a research note on Wednesday, March 27th. Finally, Benchmark restated a “buy” rating and set a $23.00 price target on shares of Direct Digital in a research report on Wednesday, April 24th.

Direct Digital Trading Down 5.7 %

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 firm’s 50 day moving average price is $12.26 and its 200 day moving average price is $12.43. The stock has a market capitalization of $49.52 million, a P/E ratio of 24.79 and a beta of 8.24.

Direct Digital (NASDAQ:DRCT) last released its quarterly earnings results on Tuesday, March 26th. The company reported ($0.08) EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.36). The business had revenue of $41.01 million for the quarter, compared to the consensus estimate of $66.02 million. Direct Digital had a net margin of 1.26% and a return on equity of 48.38%. During the same period in the previous year, the company earned $0.01 EPS. As a group, equities research analysts expect that Direct Digital Holdings, Inc. will post 0.16 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Direct Digital

Several institutional investors and hedge funds have recently modified their holdings of the stock. Perritt Capital Management Inc. lifted its holdings in Direct Digital by 31.2% in the third quarter. Perritt Capital Management Inc. now owns 52,480 shares of the company’s stock worth $134,000 after buying an additional 12,480 shares during the period. Raymond James & Associates purchased a new position in shares of Direct Digital in the 4th quarter valued at approximately $404,000. Denali Advisors LLC purchased a new position in shares of Direct Digital in the 4th quarter valued at approximately $359,000. Finally, Intrinsic Edge Capital Management LLC purchased a new stake in Direct Digital in the fourth quarter worth $1,155,000. 4.02% of the stock is owned by hedge funds and other 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.