Direct Digital (NASDAQ:DRCT) Issues Quarterly Earnings Results

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

Direct Digital Stock Down 2.2 %

DRCT stock traded down $0.35 during trading on Thursday, hitting $15.69. 131,567 shares of the company’s stock traded hands, compared to its average volume of 270,427. The firm has a market capitalization of $223.90 million, a P/E ratio of 114.57 and a beta of 8.14. The business has a fifty day simple moving average of $18.53 and a two-hundred day simple moving average of $11.00. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 3.51. Direct Digital has a 1 year low of $1.96 and a 1 year high of $35.88.

Analyst Ratings Changes

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

Hedge Funds Weigh In On Direct Digital

Institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its holdings in Direct Digital by 10.9% in the fourth quarter. Vanguard Group Inc. now owns 136,506 shares of the company’s stock worth $2,031,000 after purchasing an additional 13,431 shares during the last quarter. Renaissance Technologies LLC lifted its stake in shares of 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 buying an additional 68,315 shares during the period. Geode Capital Management LLC lifted its stake in shares of 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 buying an additional 9,980 shares during the period. Two Sigma Investments LP lifted its stake in shares of Direct Digital by 14.8% during the fourth quarter. Two Sigma Investments LP now owns 33,027 shares of the company’s stock worth $80,000 after buying an additional 4,267 shares during the period. Finally, State Street Corp acquired a new stake in shares of Direct Digital during the third quarter worth $36,000. 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.