Direct Digital (NASDAQ:DRCT) Announces Quarterly Earnings Results

Direct Digital (NASDAQ:DRCT) released its quarterly 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 net margin of 1.26% and a return on equity of 48.38%. The firm had revenue of $41.01 million for the quarter, compared to analysts’ expectations of $66.02 million. 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

Direct Digital stock opened at $16.04 on Thursday. Direct Digital has a 1-year low of $1.96 and a 1-year high of $35.88. The firm has a market cap of $228.89 million, a P/E ratio of 114.57 and a beta of 8.14. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 3.51. The firm has a 50-day moving average of $18.53 and a 200-day moving average of $11.00.

Analyst Ratings Changes

A number of analysts have recently issued reports on DRCT shares. Noble Financial reaffirmed a “market perform” rating on shares of Direct Digital in a report on Wednesday. TheStreet lowered Direct Digital from a “c” rating to a “d+” rating in a research note on Wednesday, February 14th. Benchmark decreased their price target on shares of Direct Digital from $30.00 to $23.00 and set a “buy” rating on the stock in a research note on Wednesday. Finally, Roth Mkm lowered 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. One analyst has rated the stock with a hold rating and three have given a buy rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $15.83.

Institutional Investors Weigh In On Direct Digital

Several institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted 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 valued at $2,031,000 after acquiring an additional 13,431 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Direct Digital by 60.3% during the 1st quarter. Geode Capital Management LLC now owns 26,535 shares of the company’s stock valued at $86,000 after purchasing an additional 9,980 shares in the last quarter. Renaissance Technologies LLC raised its stake in Direct Digital by 162.7% in 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 in the last quarter. Two Sigma Investments LP lifted its holdings in Direct Digital by 14.8% in 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 purchased a new position in shares of Direct Digital during the 3rd quarter worth approximately $36,000. Hedge funds and other institutional investors own 4.02% of the company’s stock.

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.