DoubleDown Interactive Co., Ltd. Sponsored ADR (NASDAQ:DDI) Sees Large Decrease in Short Interest

Key Points

• Short interest plunged by 64.9% to 13,488 shares as of April 15, leaving a days-to-cover of 0.4 and roughly 0.0% of shares sold short.
• Analyst sentiment is mixed—three Buys, one Hold and one Sell—with Wall Street Zen upgrading to Buy and Weiss downgrading to Sell; the consensus target price is $18.75 and the average rating is Hold.
• DoubleDown missed quarterly estimates (EPS $0.49 vs $0.62 expected) and reported revenue of $95.8M vs $99.6M expected, yet the stock trades at a low valuation with a P/E of 4.32 and market cap around $443M.

DoubleDown Interactive Co., Ltd. Sponsored ADR (NASDAQ:DDI - Get Free Report) was the recipient of a significant drop in short interest during the month of April. As of April 15th, there was short interest totaling 13,488 shares, a drop of 64.9% from the March 31st total of 38,378 shares. Based on an average daily volume of 32,619 shares, the days-to-cover ratio is currently 0.4 days. Approximately 0.0% of the shares of the stock are sold short.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Wall Street Zen raised DoubleDown Interactive from a "hold" rating to a "buy" rating in a research note on Saturday, April 4th. Weiss Ratings downgraded DoubleDown Interactive from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, February 23rd. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $18.75.

DoubleDown Interactive Price Performance

DoubleDown Interactive stock opened at $8.95 on Friday. The firm has a 50 day simple moving average of $8.79 and a 200-day simple moving average of $8.85. The stock has a market cap of $443.47 million, a price-to-earnings ratio of 4.32 and a beta of 0.84. DoubleDown Interactive has a 1-year low of $8.09 and a 1-year high of $11.25.

DoubleDown Interactive (NASDAQ:DDI - Get Free Report) last released its quarterly earnings results on Thursday, February 12th. The company reported $0.49 EPS for the quarter, missing the consensus estimate of $0.62 by ($0.13). DoubleDown Interactive had a net margin of 28.48% and a return on equity of 11.27%. The firm had revenue of $95.79 million for the quarter, compared to analysts' expectations of $99.61 million. Equities analysts expect that DoubleDown Interactive will post 2.27 earnings per share for the current fiscal year.

Institutional Investors Weigh In On DoubleDown Interactive

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Ameriprise Financial Inc. lifted its stake in shares of DoubleDown Interactive by 130.2% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,231,132 shares of the company's stock valued at $11,782,000 after purchasing an additional 696,366 shares during the last quarter. Hudson Bay Capital Management LP acquired a new stake in shares of DoubleDown Interactive during the 2nd quarter worth about $5,759,000. 683 Capital Management LLC increased its position in shares of DoubleDown Interactive by 66.7% during the 4th quarter. 683 Capital Management LLC now owns 500,000 shares of the company's stock worth $4,315,000 after purchasing an additional 200,000 shares during the last quarter. Potomac Capital Management Inc. purchased a new stake in DoubleDown Interactive in the 4th quarter valued at about $683,000. Finally, Stonehill Capital Management LLC lifted its position in DoubleDown Interactive by 49.1% in the third quarter. Stonehill Capital Management LLC now owns 190,605 shares of the company's stock valued at $1,780,000 after buying an additional 62,735 shares during the last quarter.

About DoubleDown Interactive

DoubleDown Interactive NASDAQ: DDI is a digital entertainment company that specializes in the development and publishing of social casino games. The company's portfolio centers around free-to-play titles that emulate the experience of land-based casino games such as slots, video poker, bingo and table games. By blending high-quality graphics, engaging gameplay features and real-time social mechanics, DoubleDown Interactive aims to deliver a virtual casino environment accessible via web, mobile and social media platforms.

The company's flagship offering, DoubleDown Casino, serves as a hub for multiple slot and table-style games, enabling millions of registered players to compete in tournaments, unlock new machines and purchase virtual coins through in-app transactions.

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