Direct Digital Holdings, Inc. to Post Q1 2024 Earnings of ($0.11) Per Share, Roth Capital Forecasts (NASDAQ:DRCT)

Direct Digital Holdings, Inc. (NASDAQ:DRCT) – Analysts at Roth Capital decreased their Q1 2024 earnings per share (EPS) estimates for Direct Digital in a report issued on Wednesday, March 27th. Roth Capital analyst D. Aftahi now expects that the company will post earnings of ($0.11) per share for the quarter, down from their previous estimate of $0.06. The consensus estimate for Direct Digital’s current full-year earnings is $0.72 per share. Roth Capital also issued estimates for Direct Digital’s Q3 2024 earnings at $0.11 EPS, Q4 2024 earnings at $0.11 EPS, FY2024 earnings at $0.30 EPS and FY2025 earnings at $0.44 EPS.

Direct Digital (NASDAQ:DRCT) last issued its earnings results on Tuesday, March 26th. The company reported ($0.08) earnings per share for the quarter, missing the consensus estimate of $0.28 by ($0.36). Direct Digital had a return on equity of 48.38% and a net margin of 1.26%. The firm had revenue of $41.01 million during the quarter, compared to analyst estimates of $66.02 million. During the same period in the previous year, the company earned $0.01 earnings per share.

Several other research analysts have also weighed in on the company. Roth Mkm dropped their target price on Direct Digital from $27.50 to $19.00 and set a “buy” rating on the stock in a research report on Wednesday. Noble Financial restated a “market perform” rating on shares of Direct Digital in a research note on Wednesday. Benchmark reduced their price objective 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 downgraded Direct Digital from a “c” rating to a “d+” rating in a research report on Wednesday, February 14th. One equities research analyst has rated the stock with a hold rating and three have assigned a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $15.83.

Direct Digital Stock Performance

Shares of DRCT stock opened at $15.24 on Friday. The company has a debt-to-equity ratio of 3.51, a current ratio of 1.16 and a quick ratio of 1.16. Direct Digital has a fifty-two week low of $1.96 and a fifty-two week high of $35.88. The stock’s 50-day moving average is $18.61 and its two-hundred day moving average is $11.03. The firm has a market cap of $217.47 million, a P/E ratio of 108.86 and a beta of 8.14.

Institutional Investors Weigh In On Direct Digital

Hedge funds and other institutional investors have recently bought and sold shares of the business. Renaissance Technologies LLC acquired a new stake in Direct Digital during the 3rd quarter valued at $30,000. UBS Group AG acquired a new stake in shares of Direct Digital in the 1st quarter valued at $31,000. State Street Corp acquired a new stake in shares of Direct Digital in the 3rd quarter valued at $36,000. Geode Capital Management LLC boosted its position in shares of Direct Digital by 31.5% in the 4th quarter. Geode Capital Management LLC now owns 16,555 shares of the company’s stock worth $40,000 after purchasing an additional 3,966 shares during the last quarter. Finally, Two Sigma Investments LP boosted its position in shares of Direct Digital by 146.5% in 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 owned by institutional investors and hedge funds.

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.