Equities Analysts Offer Predictions for Direct Digital Holdings, Inc.’s Q2 2024 Earnings (NASDAQ:DRCT)

Direct Digital Holdings, Inc. (NASDAQ:DRCT) – Investment analysts at Roth Capital cut their Q2 2024 earnings per share (EPS) estimates for Direct Digital in a research note issued on Wednesday, March 27th. Roth Capital analyst D. Aftahi now expects that the company will earn $0.19 per share for the quarter, down from their previous forecast of $0.20. The consensus estimate for Direct Digital’s current full-year earnings is $0.72 per share.

DRCT has been the topic of several other reports. Noble Financial restated a “market perform” rating on shares of Direct Digital in a research report on Wednesday. TheStreet downgraded Direct Digital from a “c” rating to a “d+” rating in a research report on Wednesday, February 14th. Roth Mkm reduced their price target on Direct Digital from $27.50 to $19.00 and set a “buy” rating for the company in a report on Wednesday. Finally, Benchmark reduced their price objective on Direct Digital from $30.00 to $23.00 and set a “buy” rating for the company in a report on Wednesday. One equities research analyst has rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat, Direct Digital presently has a consensus rating of “Moderate Buy” and a consensus target price of $15.83.

Direct Digital Trading Down 39.5 %

Shares of DRCT opened at $16.04 on Thursday. The stock has a 50 day simple moving average of $18.53 and a 200-day simple moving average of $11.00. Direct Digital has a 1 year low of $1.96 and a 1 year high of $35.88. The stock has a market cap of $228.89 million, a PE 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.

Direct Digital (NASDAQ:DRCT) last issued its earnings results on Tuesday, March 26th. The company reported ($0.08) EPS for the quarter, missing analysts’ consensus estimates of $0.28 by ($0.36). The firm had revenue of $41.01 million during the quarter, compared to analysts’ expectations 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 last year, the firm earned $0.01 EPS.

Hedge Funds Weigh In On Direct Digital

A number of hedge funds have recently added to or reduced their stakes in DRCT. Vanguard Group Inc. lifted its position in shares of Direct Digital by 10.9% during the 4th quarter. Vanguard Group Inc. now owns 136,506 shares of the company’s stock worth $2,031,000 after buying an additional 13,431 shares in the last quarter. Intrinsic Edge Capital Management LLC purchased a new position in Direct Digital in the 4th quarter valued at approximately $1,155,000. Denali Advisors LLC purchased a new position in Direct Digital in the 4th quarter valued at approximately $359,000. Raymond James & Associates purchased a new position in Direct Digital in the 4th quarter valued at approximately $404,000. Finally, Perritt Capital Management Inc. grew its stake in Direct Digital by 31.2% in the 3rd quarter. Perritt Capital Management Inc. now owns 52,480 shares of the company’s stock valued at $134,000 after buying an additional 12,480 shares in the last quarter. Institutional investors and hedge funds own 4.02% of the company’s stock.

About Direct Digital

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.