Direct Digital (DRCT) Stock Price, News & Analysis

Company Overview

Direct Digital Holdings, Inc. (NASDAQ: DRCT) is a provider of cloud-based marketing software and services tailored to mortgage lenders and real estate professionals. The company’s integrated platform is designed to help its clients generate, nurture and convert leads through customer relationship management (CRM), automated marketing campaigns, customizable websites and digital content delivery. By combining proprietary tools with expert support, Direct Digital enables users to streamline workflows, improve customer engagement and drive growth in competitive markets.

The company’s flagship offerings include a CRM system that centralizes prospect and client data, marketing automation that triggers timely email and digital campaigns, and website solutions that are optimized for lead capture and search-engine visibility. Additional modules provide branded content libraries, social media publishing, analytics dashboards and compliance tracking. Direct Digital also offers consulting services, training and technical support to help organizations implement best practices and maximize return on investment.

Headquartered in Eden Prairie, Minnesota, Direct Digital serves a diverse customer base across the United States and Canada, ranging from independent mortgage brokers to national broker-dealer networks and real estate brokerages. The company has expanded its platform through strategic partnerships and product enhancements, positioning itself as a one-stop digital marketing solution for the housing finance and property sectors. With a leadership team experienced in technology, financial services and marketing, Direct Digital continues to evolve its suite of offerings to address the changing needs of its clients.

Key Stats

• Today's Range: $0.31 to $0.33
• 50-Day Range: $0.31 to $0.60
• 52-Week Range: $0.30 to $6.59
• Volume: 1.05 million shs
• Average Volume: 1.71 million shs
• Market Capitalization: $7.13 million
• P/E Ratio: N/A
• Dividend Yield: N/A
• Price Target: $6.00
• Consensus Rating: Hold

Direct Digital Stock Analysis - MarketRank™

Direct Digital scored higher than 69% of companies evaluated by MarketBeat. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 3.4 / 5
• Analyst Rating: Hold

Consensus Rating

Direct Digital has received a consensus rating of Hold. The company's average rating score is 2.00, and is based on 1 buy rating, 1 hold rating, and 1 sell rating.

Upside Potential

Direct Digital has a consensus price target of $6.00, representing about 1,796.3% upside from its current price of $0.32.

Amount of Analyst Coverage

Direct Digital has only been the subject of 2 research reports in the past 90 days.

Earnings and Valuation

• Score: 0.6 / 5
• Proj. Earnings Growth: Growing

Earnings Growth

Earnings for Direct Digital are expected to grow in the coming year, from ($1.91) to ($1.36) per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Direct Digital is -0.17, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Price to Earnings Ratio vs. Sector

The P/E ratio of Direct Digital is -0.17, which means that its earnings are negative and its P/E ratio cannot be compared to companies with positive earnings.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.81% of the float of Direct Digital has been sold short.

Short Interest Ratio / Days to Cover

Direct Digital has a short interest ratio ("days to cover") of 0.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Direct Digital has recently decreased by 17.44%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 0.0 / 5
• Dividend Strength: N/A

Dividend Yield

Direct Digital does not currently pay a dividend.

Dividend Growth

Direct Digital does not have a long track record of dividend growth.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

2.81% of the float of Direct Digital has been sold short.

Short Interest Ratio / Days to Cover

Direct Digital has a short interest ratio ("days to cover") of 0.7, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Direct Digital has recently decreased by 17.44%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.4 / 5
• News Sentiment: N/A

News Sentiment

Direct Digital has a news sentiment score of 1.11. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.54 average news sentiment score of Business Services companies.

News Coverage This Week

MarketBeat has tracked 1 news article for Direct Digital this week, compared to 2 articles on an average week.

Search Interest

2 people have searched for DRCT on MarketBeat in the last 30 days.

MarketBeat Follows

3 people have added Direct Digital to their MarketBeat watchlist in the last 30 days. This is an increase of 200% compared to the previous 30 days.

Company Ownership

• Score: 2.5 / 5
• Insider Trading: Selling Shares

Insider Buying vs. Insider Selling

In the past three months, Direct Digital insiders have sold more of their company's stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $180,372.00 in company stock.

Percentage Held by Insiders

46.88% of the stock of Direct Digital is held by insiders. A high percentage of insider ownership can be a sign of company health.

Percentage Held by Institutions

Only 4.02% of the stock of Direct Digital is held by institutions.

DRCT Stock Analysis - Frequently Asked Questions

How have DRCT shares performed this year?

Direct Digital's stock was trading at $1.59 at the beginning of the year. Since then, DRCT stock has decreased by 80.1% and is now trading at $0.3164.

How were Direct Digital's earnings last quarter?

Direct Digital Holdings, Inc. (NASDAQ:DRCT) released its earnings results on Tuesday, August, 5th. The company reported ($0.23) EPS for the quarter, beating the consensus estimate of ($0.96) by $0.73. The firm earned $10.14 million during the quarter, compared to analysts' expectations of $11.84 million.
Read the conference call transcript.

When did Direct Digital IPO?

Direct Digital (DRCT) raised $18 million in an IPO on Friday, February 11th 2022. The company issued 2,200,000 shares at a price of $7.00-$9.00 per share. The Benchmark Company and Roth Capital Partners served as the underwriters for the IPO.

How do I buy shares of Direct Digital?

Shares of DRCT stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Direct Digital own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Direct Digital investors own include NVIDIA (NVDA), Broadcom (AVGO), Arista Networks (ANET), Novo Nordisk A/S (NVO), AppLovin (APP), Jabil (JBL) and Adobe (ADBE).

Company Calendar

• Last Earnings: 8/05/2025
• Today: 10/06/2025
• Next Earnings (Estimated): 11/11/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Business Services
• Industry: ADVERTISING/MKTG SVCS
• Sub-Industry: Business Services
• Current Symbol: NASDAQ:DRCT
• CIK: 1880613
• Web: www.directdigitalholdings.com
• Phone: 832-402-1051
• Fax: N/A
• Employees: 60
• Year Founded: N/A

Price Target and Rating

• Average Price Target for Direct Digital: $6.00
• High Price Target: $6.00
• Low Price Target: $6.00
• Potential Upside/Downside: +1,796.3%
• Consensus Rating: Hold
• Rating Score (0-4): 2.00
• Research Coverage: 3 Analysts

Profitability

• EPS (Trailing Twelve Months): ($1.83)
• Trailing P/E Ratio: N/A
• Forward P/E Ratio: N/A
• P/E Growth: N/A
• Net Income: -$6.24 million
• Net Margins: -25.99%
• Pretax Margin: -45.19%
• Return on Equity: N/A
• Return on Assets: -36.29%

Debt

• Debt-to-Equity Ratio: N/A
• Current Ratio: 0.49
• Quick Ratio: 0.49

Sales & Book Value

• Annual Sales: $62.29 million
• Price / Sales: 0.11
• Cash Flow: N/A
• Price / Cash Flow: N/A
• Book Value: ($1.21) per share
• Price / Book: -0.26

Miscellaneous

• Outstanding Shares: 22,520,000
• Free Float: 11,961,000
• Market Cap: $7.13 million
• Optionable: Not Optionable
• Beta: 5.88