Direct Digital (NASDAQ:DRCT) Posts Quarterly Earnings Results

Direct Digital (NASDAQ:DRCT) posted its earnings results on Tuesday. The company reported ($0.08) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 2.32% and a return on equity of 78.67%. During the same quarter last year, the firm earned $0.01 earnings per share. Direct Digital updated its FY 2024 guidance to EPS.

Direct Digital Stock Performance

NASDAQ DRCT traded down $11.36 during trading hours on Wednesday, hitting $15.15. The company had a trading volume of 482,943 shares, compared to its average volume of 253,088. 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 company has a market cap of $216.19 million, a PE ratio of 115.26 and a beta of 8.14. The business has a 50 day moving average of $18.41 and a 200-day moving average of $10.96. Direct Digital has a 1-year low of $1.96 and a 1-year high of $35.88.

Analysts Set New Price Targets

A number of brokerages have recently commented on DRCT. Roth Mkm upped their price target on Direct Digital from $12.50 to $27.50 and gave the company a “buy” rating in a research note on Wednesday, March 13th. Noble Financial reissued a “market perform” rating on shares of Direct Digital in a research note on Wednesday. Benchmark lowered their price target on Direct Digital from $30.00 to $23.00 and set a “buy” rating for the company in a research report on Wednesday. Finally, TheStreet cut Direct Digital from a “c” rating to a “d+” rating in a report on Wednesday, February 14th. One analyst has rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat, Direct Digital has a consensus rating of “Moderate Buy” and a consensus target price of $18.67.

Institutional Investors Weigh In On Direct Digital

Institutional investors and hedge funds have recently made changes to their positions in the business. UBS Group AG acquired a new position in shares of Direct Digital during the first quarter valued at $31,000. Renaissance Technologies LLC acquired a new position in shares of Direct Digital during the third quarter worth about $30,000. State Street Corp bought a new position in shares of Direct Digital during the third quarter worth approximately $36,000. Geode Capital Management LLC boosted its holdings in shares of Direct Digital by 31.5% during the 4th quarter. Geode Capital Management LLC now owns 16,555 shares of the company’s stock valued at $40,000 after acquiring an additional 3,966 shares in the last quarter. Finally, Two Sigma Investments LP raised its position in Direct Digital by 146.5% during the 3rd 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. 4.02% of the stock is currently 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.