Direct Digital Holdings Inc. (NASDAQ: DRCT) stock jumped 20.11% on Friday to $2.15 against a previous-day closing price of $1.79. With 1.48 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.92 million shares. During the session, the Advertising Agencies company that operates in wider Communication Services sector, reached to the highest price of $2.7099 whereas the lowest price it dropped to was $1.7700. The 52-week range on DRCT shows that it touched its highest point at $5.49 and its lowest point at $1.16 during that stretch. It currently has a 1-year price target of $6.00.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DRCT was up-trending over the past week, with a rise of 27.98%, but this was up by 61.65% over a month. A look at the trailing 12-month EPS for DRCT yields -0.10 with Next year EPS estimates of 0.24. For the next quarter, that number is 0.06. This implies an EPS growth rate of -65.90% for this year and 2700.00% for next year.
Float and Shares Shorts:
At present, 14.18 million DRCT shares are outstanding with a float of 2.80 million shares on hand for trading. On Jul 14, 2022, short shares totaled 71990.0, which was 2.57% higher than short shares on Jun 14, 2022. In addition to Mr. Mark D. Walker as the firm’s CEO & Chairman, Mr. Keith W. Smith serves as its Founder, Pres & Director.
Institutional Ownership:
Through their ownership of 11.96% of DRCT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.46% of DRCT, in contrast to 1.96% held by mutual funds. Shares owned by individuals account for -1.33%. As the largest shareholder in DRCT with 0.26% of the stake, HCP Asset Management SA holds 7,195 shares worth 7,195. A second-largest stockholder of DRCT, UBS Securities LLC, holds 7,195 shares, controlling over 0.26% of the firm’s shares. Citigroup Global Markets, Inc. is the third largest shareholder in DRCT, holding 3,032 shares or 0.11% stake. With a 1.01% stake in DRCT, the Vanguard Extended Market Index Fu is the largest stakeholder. A total of 28,276 shares are owned by the mutual fund manager. The iShares Tr. – Micro Cap ETF, which owns about 0.50% of DRCT stock, is the second-largest Mutual Fund holder. It holds 13,862 shares valued at 17743.0. Fidelity Extended Market Index Fu holds 0.45% of the stake in DRCT, owning 12,589 shares worth 16114.0.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DRCT since 3 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With DRCT analysts setting a high price target of $8.00 and a low target of $4.50, the average target price over the next 12 months is $6.00. Based on these targets, DRCT could surge 272.09% to reach the target high and rise by 109.3% to reach the target low. Reaching the average price target will result in a growth of 179.07% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. DRCT will report FY 2022 earnings on 03/28/2023. Analysts have provided yearly estimates in a range of -$0.03 being high and -$0.05 being low. For DRCT, this leads to a yearly average estimate of -$0.04. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Direct Digital Holdings Inc. surprised analysts by -$0.01 when it reported -$0.09 EPS against a consensus estimate of -$0.09. The surprise factor in the prior quarter was -$62.27. Based on analyst estimates, the high estimate for the next quarter is $0.08 and the low estimate is $0.05. The average estimate for the next quarter is thus $0.06.
Summary of Insider Activity:
Insiders traded DRCT stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 0 while 300,000 shares were sold.
