Direct Digital (NASDAQ:DRCT) Issues Quarterly Earnings Results

Direct Digital (NASDAQ:DRCT) released its earnings results on Tuesday. The company reported ($0.08) EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.36), Zacks reports. Direct Digital had a return on equity of 48.38% and a net margin of 1.26%. The company had revenue of $41.01 million for the quarter, compared to analysts’ expectations of $66.02 million. During the same period in the prior year, the firm earned $0.01 EPS. Direct Digital updated its FY 2024 guidance to EPS.

Direct Digital Trading Down 0.2 %

Shares of NASDAQ DRCT traded down $0.03 during mid-day trading on Thursday, reaching $16.01. 126,306 shares of the company’s stock were exchanged, compared to its average volume of 270,330. The company’s 50-day moving average is $18.53 and its 200-day moving average is $11.00. The company has a debt-to-equity ratio of 3.51, a quick ratio of 1.16 and a current ratio of 1.16. The firm has a market capitalization of $228.46 million, a price-to-earnings 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.

Wall Street Analyst Weigh In

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

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its stake in shares of Direct Digital by 10.9% in the 4th quarter. Vanguard Group Inc. now owns 136,506 shares of the company’s stock valued at $2,031,000 after acquiring an additional 13,431 shares during the period. Geode Capital Management LLC lifted its stake in Direct Digital by 60.3% during the first quarter. Geode Capital Management LLC now owns 26,535 shares of the company’s stock worth $86,000 after purchasing an additional 9,980 shares in the last quarter. Renaissance Technologies LLC lifted its stake in Direct Digital by 162.7% during the first quarter. Renaissance Technologies LLC now owns 110,315 shares of the company’s stock worth $357,000 after purchasing an additional 68,315 shares in the last quarter. Two Sigma Investments LP grew its stake in shares of Direct Digital by 14.8% in the fourth quarter. Two Sigma Investments LP now owns 33,027 shares of the company’s stock valued at $80,000 after buying an additional 4,267 shares in the last quarter. Finally, State Street Corp purchased a new stake in shares of Direct Digital in the 3rd quarter valued at $36,000. Institutional investors and hedge funds own 4.02% of the company’s stock.

About Direct Digital

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.