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

Key Points

• Short interest surged 173.2% to 26,040 shares as of July 31, though only about 0.1% of DDI’s shares are sold short and the days-to-cover ratio remains low at 0.4.
• Analyst sentiment remains mixed, with two Buy ratings and three Holds, resulting in a consensus rating of Hold and an average price target of $18.33.
• DoubleDown Interactive exceeded quarterly expectations, reporting $0.66 in EPS versus the $0.61 estimate and $94.29 million in revenue versus the $92.90 million consensus.

DoubleDown Interactive Co., Ltd. Sponsored ADR (NASDAQ:DDI - Get Free Report) was the target of a large growth in short interest in July. As of July 31st, there was short interest totaling 26,040 shares, a growth of 173.2% from the July 15th total of 9,532 shares. Based on an average daily trading volume, of 58,220 shares, the days-to-cover ratio is presently 0.4 days. Approximately 0.1% of the shares of the company are short sold.

Wall Street Analysts Forecast Growth

DDI has been the subject of a number of analyst reports. Wall Street Zen upgraded DoubleDown Interactive from a "hold" rating to a "buy" rating in a research report on Saturday, May 16th. Freedom Capital lowered DoubleDown Interactive from a "strong-buy" rating to a "hold" rating in a report on Tuesday, April 28th. Wedbush cut their price objective on shares of DoubleDown Interactive from $21.00 to $15.00 and set an "outperform" rating on the stock in a research note on Wednesday, May 13th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of DoubleDown Interactive in a report on Friday, August 7th. Finally, B. Riley Financial raised their target price on shares of DoubleDown Interactive from $22.00 to $24.00 and gave the company a "buy" rating in a research note on Wednesday. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus target price of $18.33.

Hedge Funds Weigh In On DoubleDown Interactive

Several institutional investors and hedge funds have recently added to or reduced their stakes in DDI. Goldman Sachs Group Inc. lifted its holdings in shares of DoubleDown Interactive by 127.4% in the first quarter. Goldman Sachs Group Inc. now owns 28,790 shares of the company's stock valued at $285,000 after purchasing an additional 16,128 shares in the last quarter. Acadian Asset Management LLC boosted its position in DoubleDown Interactive by 124.7% during the 1st quarter. Acadian Asset Management LLC now owns 60,282 shares of the company's stock worth $591,000 after acquiring an additional 33,459 shares during the period. Ameriprise Financial Inc. grew its stake in DoubleDown Interactive by 130.2% during the 2nd quarter. Ameriprise Financial Inc. now owns 1,231,132 shares of the company's stock valued at $11,782,000 after acquiring an additional 696,366 shares in the last quarter. Hudson Bay Capital Management LP purchased a new position in DoubleDown Interactive during the 2nd quarter valued at about $5,759,000. Finally, Osaic Holdings Inc. increased its holdings in shares of DoubleDown Interactive by 338.6% in the 2nd quarter. Osaic Holdings Inc. now owns 3,105 shares of the company's stock valued at $30,000 after purchasing an additional 2,397 shares during the period.

DoubleDown Interactive Price Performance

NASDAQ DDI opened at $12.48 on Friday. DoubleDown Interactive has a 12 month low of $8.10 and a 12 month high of $12.55. The company has a market capitalization of $618.38 million, a P/E ratio of 4.95 and a beta of 1.02. The company's 50 day simple moving average is $11.56 and its 200 day simple moving average is $10.28.

DoubleDown Interactive (NASDAQ:DDI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $0.66 EPS for the quarter, beating analysts' consensus estimates of $0.61 by $0.05. The company had revenue of $94.29 million during the quarter, compared to the consensus estimate of $92.90 million. DoubleDown Interactive had a return on equity of 13.13% and a net margin of 32.91%. On average, analysts anticipate that DoubleDown Interactive will post 2.6 earnings per share for the current year.

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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