DoubleDown Interactive (NASDAQ:DDI) Upgraded to Buy at Wall Street Zen

Key Points

• Wall Street Zen upgraded DoubleDown Interactive (NASDAQ:DDI) from "hold" to "buy" while Weiss Ratings downgraded it from "hold (c-)" to "sell (d+)"; the five analyst mix leaves an overall average rating of Hold with an average target of $18.75.
• Q4 results missed — DDI reported $0.49 EPS vs. $0.62 expected and $95.8M revenue vs. $99.6M expected; the stock trades near $8.88 with a market cap of ~$440M and a low PE (~4.3), and analysts expect about 2.28 EPS for the year.
• Several institutional investors have recently increased positions (notably BRC Group, Ameriprise and 683 Capital), indicating continued hedge fund/institutional interest in the company.

DoubleDown Interactive (NASDAQ:DDI - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday.

Separately, Weiss Ratings lowered DoubleDown Interactive from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Monday, February 23rd. Three equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $18.75.

DoubleDown Interactive Price Performance

Shares of NASDAQ DDI opened at $8.88 on Friday. The company has a 50-day simple moving average of $8.75 and a 200-day simple moving average of $8.90. The company has a market cap of $440.00 million, a PE ratio of 4.29 and a beta of 0.84. DoubleDown Interactive has a 12 month low of $8.09 and a 12 month high of $11.25.

DoubleDown Interactive (NASDAQ:DDI - Get Free Report) last announced its quarterly earnings data on Thursday, February 12th. The company reported $0.49 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.62 by ($0.13). The firm had revenue of $95.79 million for the quarter, compared to analysts' expectations of $99.61 million. DoubleDown Interactive had a net margin of 28.48% and a return on equity of 11.27%. On average, analysts anticipate that DoubleDown Interactive will post 2.28 EPS for the current year.

Hedge Funds Weigh In On DoubleDown Interactive

Several hedge funds and other institutional investors have recently modified their holdings of the company. BRC Group Holdings Inc. grew its holdings in shares of DoubleDown Interactive by 0.8% during the 4th quarter. BRC Group Holdings Inc. now owns 3,477,440 shares of the company's stock worth $30,010,000 after purchasing an additional 26,937 shares during the period. Ameriprise Financial Inc. raised its holdings in DoubleDown Interactive by 10.2% in the third quarter. Ameriprise Financial Inc. now owns 1,357,163 shares of the company's stock valued at $12,676,000 after buying an additional 126,031 shares during the period. Hudson Bay Capital Management LP acquired a new position in DoubleDown Interactive during the second quarter valued at approximately $5,759,000. 683 Capital Management LLC lifted its position in DoubleDown Interactive by 66.7% during the fourth quarter. 683 Capital Management LLC now owns 500,000 shares of the company's stock valued at $4,315,000 after buying an additional 200,000 shares in the last quarter. Finally, Stonehill Capital Management LLC grew its stake in DoubleDown Interactive by 49.1% during the third quarter. Stonehill Capital Management LLC now owns 190,605 shares of the company's stock worth $1,780,000 after buying an additional 62,735 shares during the period.

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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