Direct Digital Holdings, Inc. (NASDAQ:DRCT) Short Interest Down 57.8% in April

Direct Digital Holdings, Inc. (NASDAQ:DRCT) was the recipient of a large drop in short interest during the month of April. As of April 15th, there was short interest totalling 121,500 shares, a drop of 57.8% from the March 31st total of 287,800 shares. Currently, 4.8% of the company’s stock are sold short. Based on an average daily trading volume, of 227,200 shares, the short-interest ratio is currently 0.5 days.

Institutional Investors Weigh In On Direct Digital

Institutional investors have recently made changes to their positions in the stock. Denali Advisors LLC bought a new stake in shares of Direct Digital during the 4th quarter valued at $359,000. Raymond James & Associates purchased a new position in Direct Digital during the 4th quarter valued at about $404,000. Warberg Asset Management LLC bought a new stake in shares of Direct Digital during the third quarter valued at about $76,000. Perritt Capital Management Inc. lifted its holdings in shares of Direct Digital by 31.2% in the third quarter. Perritt Capital Management Inc. now owns 52,480 shares of the company’s stock worth $134,000 after buying an additional 12,480 shares in the last quarter. Finally, Intrinsic Edge Capital Management LLC bought a new position in shares of Direct Digital in the fourth quarter valued at approximately $1,155,000. Hedge funds and other institutional investors own 4.02% of the company’s stock.

Wall Street Analyst Weigh In

DRCT has been the subject of several recent analyst reports. Benchmark reaffirmed a “buy” rating and issued a $23.00 target price on shares of Direct Digital in a report on Wednesday. Noble Financial reiterated a “market perform” rating on shares of Direct Digital in a research note on Wednesday, March 27th. Roth Mkm reduced 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 report on Wednesday, March 27th. Finally, TheStreet cut shares of Direct Digital from a “c” rating to a “d+” rating in a research note on Wednesday, February 14th.

Direct Digital Stock Performance

Shares of DRCT stock traded down $0.44 on Friday, hitting $5.68. 142,599 shares of the stock were exchanged, compared to its average volume of 115,514. Direct Digital has a one year low of $1.96 and a one year high of $35.88. The firm’s 50 day moving average is $17.37 and its two-hundred day moving average is $12.21. The firm has a market capitalization of $81.05 million, a PE ratio of 40.57 and a beta of 7.91. 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 posted its quarterly earnings results on Tuesday, March 26th. The company reported ($0.08) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.28 by ($0.36). The business had revenue of $41.01 million during the quarter, compared to the consensus estimate of $66.02 million. Direct Digital had a net margin of 1.26% and a return on equity of 48.38%. During the same period last year, the firm earned $0.01 EPS. Sell-side analysts expect that Direct Digital will post 0.16 earnings per share for the current fiscal year.

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.