DoubleDown Interactive (NASDAQ:DDI) Shares Gap Up - Should You Buy?

Key Points

• Shares gapped up before trading, opening at $10.75 from a $9.19 close (last $10.78), an ~18.1% move on roughly 200,000 shares.
• Analyst sentiment is mixed — three Buys, one Hold and one Sell with an average rating of “Hold” and an average price target of $18.75; notable moves include a downgrade from Weiss Ratings and an upgrade from Wall Street Zen.
• DoubleDown missed the latest quarter (EPS $0.49 vs. $0.62 expected; revenue $95.79M vs. $99.61M) despite a market cap of ~$537.6M, a P/E of 5.23 and analysts projecting ~2.27 EPS for the year.

DoubleDown Interactive Co., Ltd. Sponsored ADR (NASDAQ:DDI - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $9.19, but opened at $10.75. DoubleDown Interactive shares last traded at $10.78, with a volume of 199,991 shares changing hands.

Analyst Ratings Changes

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

DoubleDown Interactive Stock Up 18.1%

The stock has a market cap of $537.57 million, a P/E ratio of 5.23 and a beta of 0.84. The firm's 50 day simple moving average is $8.80 and its two-hundred day simple moving average is $8.85.

DoubleDown Interactive (NASDAQ:DDI - Get Free Report) last posted its quarterly earnings results on Thursday, February 12th. The company reported $0.49 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.62 by ($0.13). DoubleDown Interactive had a return on equity of 11.27% and a net margin of 28.48%.The business had revenue of $95.79 million during the quarter, compared to the consensus estimate of $99.61 million. As a group, equities analysts predict that DoubleDown Interactive Co., Ltd. Sponsored ADR will post 2.27 EPS for the current year.

Hedge Funds Weigh In On DoubleDown Interactive

A number of hedge funds and other institutional investors have recently bought and sold shares of DDI. Osaic Holdings Inc. raised its position in shares of DoubleDown Interactive by 338.6% during the 2nd quarter. Osaic Holdings Inc. now owns 3,105 shares of the company's stock worth $30,000 after purchasing an additional 2,397 shares during the period. Four Tree Island Advisory LLC acquired a new position in DoubleDown Interactive during the 4th quarter valued at approximately $93,000. Corient Private Wealth LLC bought a new position in DoubleDown Interactive during the 4th quarter worth $94,000. XTX Topco Ltd bought a new position in DoubleDown Interactive during the 4th quarter worth $118,000. Finally, Whetstone Capital Advisors LLC acquired a new stake in DoubleDown Interactive in the fourth quarter worth $173,000.

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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