Direct Digital Holdings, Inc. (NASDAQ:DRCT) Sees Significant Growth in Short Interest

by · The Cerbat Gem

Direct Digital Holdings, Inc. (NASDAQ:DRCT – Get Free Report) saw a large growth in short interest in the month of June. As of June 15th, there was short interest totalling 372,400 shares, a growth of 239.2% from the May 31st total of 109,800 shares. Approximately 15.3% of the shares of the company are sold short. Based on an average trading volume of 401,300 shares, the days-to-cover ratio is currently 0.9 days.

Institutional Trading of Direct Digital

Several hedge funds have recently modified their holdings of DRCT. Perritt Capital Management Inc. lifted its position in shares of Direct Digital by 31.2% during the third quarter. Perritt Capital Management Inc. now owns 52,480 shares of the company’s stock worth $134,000 after purchasing an additional 12,480 shares in the last quarter. Raymond James & Associates acquired a new position in Direct Digital during the 4th quarter worth $404,000. Denali Advisors LLC bought a new position in Direct Digital in the 4th quarter valued at $359,000. Finally, Intrinsic Edge Capital Management LLC bought a new stake in shares of Direct Digital during the fourth quarter worth $1,155,000. Institutional investors and hedge funds own 4.02% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on DRCT shares. Roth Mkm decreased their price target 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, March 27th. Benchmark reiterated a “buy” rating and set a $23.00 target price on shares of Direct Digital in a research report on Wednesday, April 24th. Finally, Noble Financial reissued a “market perform” rating on shares of Direct Digital in a research report on Wednesday, March 27th.

Read Our Latest Stock Report on Direct Digital

Direct Digital Price Performance

DRCT stock traded down $0.27 during trading on Friday, hitting $4.03. The company had a trading volume of 194,084 shares, compared to its average volume of 328,740. The company has a fifty day moving average price of $4.10 and a two-hundred day moving average price of $11.45. Direct Digital has a fifty-two week low of $1.96 and a fifty-two week high of $35.88. The company has a market cap of $57.51 million, a P/E ratio of 28.79 and a beta of 7.77. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 3.51.

Direct Digital (NASDAQ:DRCT – Get Free Report) last issued its earnings results on Tuesday, March 26th. The company reported ($0.08) EPS for the quarter, missing the consensus estimate of $0.28 by ($0.36). The firm had revenue of $41.01 million during the quarter, compared to analyst estimates of $66.02 million. Direct Digital had a net margin of 1.26% and a return on equity of 48.38%. During the same quarter in the prior year, the firm posted $0.01 EPS. Equities research analysts expect that Direct Digital will post 0.16 earnings per share for the current fiscal year.

Direct Digital Company Profile

(Get Free Report)

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.

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