Direct Digital (DRCT) Stock Price, News & Analysis

Company Overview

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. It serves various industry verticals, such as travel, healthcare, education, financial services, consumer products, and other sectors with a focus on small and mid-sized businesses. The company was founded in 2018 and is headquartered in Houston, Texas.

Key Stats

• Today's Range: $2.65 to $2.93
• 50-Day Range: $1.94 to $3.61
• 52-Week Range: $1.85 to $35.88
• Volume: 156,281 shs
• Average Volume: 241,913 shs
• Market Capitalization: $40.81 million
• P/E Ratio: 20.43
• Dividend Yield: N/A
• Price Target: $21.00
• Consensus Rating: Moderate Buy

Direct Digital Stock Analysis - MarketRank™

Direct Digital scored higher than 79% of companies evaluated by MarketBeat, and ranked 83rd out of 330 stocks in the business services sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.3 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Direct Digital has received a consensus rating of Moderate Buy. The company's average rating score is 2.67, and is based on 2 buy ratings, 1 hold rating, and no sell ratings.

Amount of Analyst Coverage

Direct Digital has received no research coverage in the past 90 days.

Earnings and Valuation

• Score: 3.1 / 5
• Proj. Earnings Growth: 175.00%

Earnings Growth

Earnings for Direct Digital are expected to grow by 175.00% in the coming year, from $0.16 to $0.44 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Direct Digital is 20.43, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 133.47.

Price to Earnings Ratio vs. Sector

The P/E ratio of Direct Digital is 20.43, which means that it is trading at a less expensive P/E ratio than the Business Services sector average P/E ratio of about 42.63.

Price to Book Value per Share Ratio

Direct Digital has a P/B Ratio of 8.94. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.89% of the float of Direct Digital has been sold short.

Short Interest Ratio / Days to Cover

Direct Digital has a short interest ratio ("days to cover") of 1.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Direct Digital has recently increased by 93.53%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Direct Digital does not currently pay a dividend.

Dividend Growth

Direct Digital does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.89% of the float of Direct Digital has been sold short.

Short Interest Ratio / Days to Cover

Direct Digital has a short interest ratio ("days to cover") of 1.6, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Direct Digital has recently increased by 93.53%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 2.6 / 5
• News Sentiment: 0.66

News Sentiment

Direct Digital has a news sentiment score of 0.66. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This news sentiment score is similar to the average news sentiment of Business Services companies.

News Coverage This Week

MarketBeat has tracked 3 news articles for Direct Digital this week, compared to 4 articles on an average week.

Search Interest

10 people have searched for DRCT on MarketBeat in the last 30 days. This is an increase of 100% compared to the previous 30 days.

MarketBeat Follows

1 people have added Direct Digital to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 1.7 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Direct Digital insiders have not sold or bought any company stock.

Percentage Held by Insiders

80.79% of the stock of Direct Digital is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

Only 4.02% of the stock of Direct Digital is held by institutions.

DRCT Stock Analysis - Frequently Asked Questions

How have DRCT shares performed this year?

Direct Digital's stock was trading at $14.88 at the beginning of the year. Since then, DRCT stock has decreased by 80.8% and is now trading at $2.86.
View the best growth stocks for 2024 here.

How were Direct Digital's earnings last quarter?

Direct Digital Holdings, Inc. (NASDAQ:DRCT) issued its quarterly earnings data on Tuesday, March, 26th. The company reported ($0.08) earnings per share for the quarter, missing analysts' consensus estimates of $0.28 by $0.36. The firm earned $41.01 million during the quarter, compared to analyst estimates of $66.02 million.

When did Direct Digital IPO?

Direct Digital (DRCT) raised $18 million in an initial public offering on Friday, February 11th 2022. The company issued 2,200,000 shares at a price of $7.00-$9.00 per share. The Benchmark Company and Roth Capital Partners served as the underwriters for the IPO.

How do I buy shares of Direct Digital?

Shares of DRCT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
Compare Top Brokerages Here.

What other stocks do shareholders of Direct Digital own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Direct Digital investors own include NVIDIA (NVDA), Broadcom (AVGO), Arista Networks (ANET), Novo Nordisk A/S (NVO), AppLovin (APP), Jabil (JBL) and Adobe (ADBE).

Company Calendar

• Last Earnings: 3/26/2024
• Today: 10/17/2024
• Next Earnings (Estimated): 11/14/2024
• Fiscal Year End: 12/31/2024

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Business Services
• Industry: Advertising
• Sub-Industry: Business Services
• Current Symbol: NASDAQ:DRCT
• CUSIP: N/A
• CIK: 1880613
• Web: www.directdigitalholdings.com
• Phone: 832-402-1051
• Fax: N/A
• Employees: 60
• Year Founded: N/A

Price Target and Rating

• Average Stock Price Target: $21.00
• High Stock Price Target: $23.00
• Low Stock Price Target: $19.00
• Potential Upside/Downside: +634.3%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.67
• Research Coverage: 3 Analysts

Profitability

• EPS (Most Recent Fiscal Year): N/A
• Trailing P/E Ratio: 20.43
• Forward P/E Ratio: 17.88
• P/E Growth: N/A
• Net Income: N/A
• Net Margins: N/A
• Pretax Margin: N/A
• Return on Equity: N/A
• Return on Assets: N/A

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: N/A
• Quick Ratio: N/A

Sales & Book Value

• Annual Sales: $157.11 million
• Price / Sales: 0.26
• Cash Flow: $0.49 per share
• Price / Cash Flow: 5.85
• Book Value: $0.32 per share
• Price / Book: 8.94

Miscellaneous

• Outstanding Shares: 14,270,000
• Free Float: 2,741,000
• Market Cap: $40.81 million
• Optionable: Not Optionable
• Beta: 7.52