Short Interest in Direct Digital Holdings, Inc. (NASDAQ:DRCT) Declines By 17.5%

Direct Digital Holdings, Inc. (NASDAQ:DRCT) was the target of a significant drop in short interest during the month of August. As of August 31st, there was short interest totalling 54,100 shares, a drop of 17.5% from the August 15th total of 65,600 shares. Based on an average daily volume of 44,800 shares, the days-to-cover ratio is presently 1.2 days. Currently, 1.6% of the shares of the stock are sold short.

Institutional Trading of Direct Digital

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DRCT. UBS Group AG purchased a new position in shares of Direct Digital during the first quarter valued at approximately $31,000. Renaissance Technologies LLC purchased a new position in Direct Digital during the 3rd quarter valued at $30,000. State Street Corp bought a new position in Direct Digital in the 3rd quarter valued at $36,000. Geode Capital Management LLC increased its stake in Direct Digital by 31.5% in the fourth quarter. Geode Capital Management LLC now owns 16,555 shares of the company’s stock worth $40,000 after purchasing an additional 3,966 shares during the period. Finally, Two Sigma Investments LP lifted its position in shares of Direct Digital by 146.5% during the third quarter. Two Sigma Investments LP now owns 28,760 shares of the company’s stock worth $64,000 after purchasing an additional 17,095 shares during the last quarter. 2.18% of the stock is owned by hedge funds and other institutional investors.

Direct Digital Price Performance

Shares of NASDAQ:DRCT traded down $0.03 on Tuesday, reaching $2.25. The company’s stock had a trading volume of 5,296 shares, compared to its average volume of 70,826. The company has a 50-day simple moving average of $2.53 and a 200 day simple moving average of $3.02. The company has a debt-to-equity ratio of 5.64, a quick ratio of 1.19 and a current ratio of 1.19. The company has a market cap of $32.11 million, a P/E ratio of 37.51 and a beta of 4.15. Direct Digital has a 52-week low of $1.82 and a 52-week high of $6.53.

Direct Digital (NASDAQ:DRCT) last posted its quarterly earnings data on Thursday, August 10th. The company reported $0.08 EPS for the quarter, hitting the consensus estimate of $0.08. Direct Digital had a net margin of 0.75% and a return on equity of 25.32%. The company had revenue of $35.40 million during the quarter, compared to analyst estimates of $29.94 million. As a group, equities research analysts anticipate that Direct Digital will post 0.08 EPS for the current fiscal year.

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.