Is Direct Digital Stock a Good Investment?
Direct Digital Investment Advice | DRCT |
- Examine Direct Digital's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Direct Digital's leadership team and their track record. Good management can help Direct Digital navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Direct Digital's business and its evolving consumer preferences.
- Compare Direct Digital's performance and market position to its competitors. Analyze how Direct Digital is positioned in terms of product offerings, innovation, and market share.
- Check if Direct Digital pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Direct Digital's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Direct Digital Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Direct Digital Holdings is a good investment.
Sell | Buy |
Strong Sell
Market Performance | Very Weak | Details | |
Volatility | Abnormally volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Average | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Direct Digital Stock
Researching Direct Digital's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company recorded a loss per share of 1.66. Direct Digital Holdings had not issued any dividends in recent years.
To determine if Direct Digital is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Direct Digital's research are outlined below:
| Direct Digital generated a negative expected return over the last 90 days | |
| Direct Digital has high historical volatility and very poor performance | |
| Direct Digital has some characteristics of a very speculative penny stock | |
| Direct Digital has high likelihood to experience some financial distress in the next 2 years | |
| The company reported the previous year's revenue of 62.29 M. Net Loss for the year was (19.91 M) with profit before overhead, payroll, taxes, and interest of 17.39 M. | |
| Direct Digital Holdings currently holds about 4.92 M in cash with (8.65 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.55, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Latest headline from finance.yahoo.com: Direct Digital Holdings AI Council Unveils New Guide to Help Higher Ed Marketers Harness Generative AI |
Direct Digital Quarterly Liabilities And Stockholders Equity |
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Direct Digital uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Direct Digital Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Direct Digital's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of March 2024 Upcoming Quarterly Report | View | |
| 9th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Direct Digital's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Direct Digital's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-05-11 | 2023-03-31 | -0.08 | -0.09 | -0.01 | 12 | ||
2022-11-10 | 2022-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2023-08-10 | 2023-06-30 | 0.11 | 0.08 | -0.03 | 27 | ||
2022-05-16 | 2022-03-31 | -0.06 | -0.09 | -0.03 | 50 | ||
2023-03-23 | 2022-12-31 | 0.1 | 0.01 | -0.09 | 90 | ||
2022-08-11 | 2022-06-30 | 0.06 | 0.18 | 0.12 | 200 | ||
2023-11-09 | 2023-09-30 | 0.05 | 0.23 | 0.18 | 360 | ||
2024-03-26 | 2023-12-31 | 0.26 | 0.02 | -0.24 | 92 |
Know Direct Digital's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Direct Digital is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Direct Digital Holdings backward and forwards among themselves. Direct Digital's institutional investor refers to the entity that pools money to purchase Direct Digital's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Mccormack Advisors International | 2024-12-31 | 72.0 | Wells Fargo & Co | 2024-12-31 | 0.0 | Cresset Asset Management, Llc | 2024-12-31 | 0.0 | Qube Research & Technologies | 2024-09-30 | 0.0 | Ameriprise Financial Inc | 2024-12-31 | 0.0 | Privium Fund Management (uk) Ltd | 2024-09-30 | 0.0 | Vanguard Group Inc | 2024-12-31 | 138 K | Citadel Advisors Llc | 2024-12-31 | 44.2 K | Geode Capital Management, Llc | 2024-12-31 | 34.5 K | Ubs Group Ag | 2024-12-31 | 22 K | Blackrock Inc | 2024-12-31 | 16.3 K |
Direct Digital's market capitalization trends
The company currently falls under 'Micro-Cap' category with a current market capitalization of 11.01 M.Market Cap |
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Direct Digital's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.64) | (0.61) | |
| Return On Capital Employed | (1.05) | (1.10) | |
| Return On Assets | (0.24) | (0.23) | |
| Return On Equity | 0.32 | 0.25 |
Determining Direct Digital's profitability involves analyzing its financial statements and using various financial metrics to determine if Direct Digital is a good buy. For example, gross profit margin measures Direct Digital's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Direct Digital's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Direct Digital's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Direct Digital Holdings. Check Direct Digital's Beneish M Score to see the likelihood of Direct Digital's management manipulating its earnings.
Evaluate Direct Digital's management efficiency
Direct Digital Holdings has return on total asset (ROA) of (0.1742) % which means that it has lost $0.1742 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.5737 %, meaning that it created $0.5737 on every $100 dollars invested by stockholders. Direct Digital's management efficiency ratios could be used to measure how well Direct Digital manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to gain to -0.61 in 2025. Return On Capital Employed is likely to drop to -1.1 in 2025. At this time, Direct Digital's Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 40.8 M in 2025, whereas Non Current Liabilities Total is likely to drop slightly above 26.5 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (5.25) | (4.99) | |
| Tangible Book Value Per Share | (9.57) | (10.05) | |
| Enterprise Value Over EBITDA | (1.54) | (1.46) | |
| Price Book Value Ratio | (0.30) | (0.29) | |
| Enterprise Value Multiple | (1.54) | (1.46) | |
| Price Fair Value | (0.30) | (0.29) | |
| Enterprise Value | 49.8 M | 44.3 M |
Direct Digital showcases strong leadership that adapts to market changes and drives innovation. Our analysis explores how this adaptability affects the stock's investment appeal.
Beta 6.61 |
Basic technical analysis of Direct Stock
As of the 7th of April, Direct Digital shows the Mean Deviation of 6.39, standard deviation of 12.93, and Variance of 167.29. Direct Digital Holdings technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Direct Digital's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Direct Digital insiders, such as employees or executives, is commonly permitted as long as it does not rely on Direct Digital's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Direct Digital insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Direct Digital's Outstanding Corporate Bonds
Direct Digital issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Direct Digital Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Direct bonds can be classified according to their maturity, which is the date when Direct Digital Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US254687DD54 Corp BondUS254687DD54 | View | |
| DIS 77 30 OCT 25 Corp BondUS254687DF03 | View | |
| DISNEY WALT NEW Corp BondUS25468PCP99 | View | |
| DISNEY WALT NEW Corp BondUS25468PCR55 | View | |
| US254687DH68 Corp BondUS254687DH68 | View | |
| Dana 575 percent Corp BondUS235822AB96 | View | |
| DISNEY WALT NEW Corp BondUS25468PBW59 | View | |
| WALT DISNEY CO Corp BondUS254687FL52 | View |
Understand Direct Digital's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Direct Digital's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.1) | |||
| Market Risk Adjusted Performance | 6.41 | |||
| Mean Deviation | 6.39 | |||
| Coefficient Of Variation | (1,126) | |||
| Standard Deviation | 12.93 | |||
| Variance | 167.29 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (1.19) | |||
| Total Risk Alpha | 0.6133 | |||
| Treynor Ratio | 6.4 | |||
| Maximum Drawdown | 115.63 | |||
| Value At Risk | (12.63) | |||
| Potential Upside | 7.87 | |||
| Skewness | 2.32 | |||
| Kurtosis | 16.81 |
| Risk Adjusted Performance | (0.1) | |||
| Market Risk Adjusted Performance | 6.41 | |||
| Mean Deviation | 6.39 | |||
| Coefficient Of Variation | (1,126) | |||
| Standard Deviation | 12.93 | |||
| Variance | 167.29 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (1.19) | |||
| Total Risk Alpha | 0.6133 | |||
| Treynor Ratio | 6.4 | |||
| Maximum Drawdown | 115.63 | |||
| Value At Risk | (12.63) | |||
| Potential Upside | 7.87 | |||
| Skewness | 2.32 | |||
| Kurtosis | 16.81 |
Consider Direct Digital's intraday indicators
Direct Digital intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Direct Digital stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Direct Digital time-series forecasting models is one of many Direct Digital's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Direct Digital's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.
Direct Stock media impact
Far too much social signal, news, headlines, and media speculation about Direct Digital that are available to investors today. That information is available publicly through Direct media outlets and privately through word of mouth or via Direct internal channels. However, regardless of the origin, that massive amount of Direct data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Direct Digital news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Direct Digital relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Direct Digital's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Direct Digital alpha.
Direct Digital Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Direct Digital can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Direct Digital Corporate Management
| Lashawnda Goffin | Chief SSP | Profile | |
| Kristie MacDonald | Senior Development | Profile | |
| Diana Diaz | Chief Officer | Profile | |
| Anu Pillai | Chief Officer | Profile | |
| Duyen CPA | Vice Culture | Profile | |
| Maria Lowrey | Chief Officer | Profile |
Additional Tools for Direct Stock Analysis
When running Direct Digital's price analysis, check to measure Direct Digital's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Direct Digital is operating at the current time. Most of Direct Digital's value examination focuses on studying past and present price action to predict the probability of Direct Digital's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Direct Digital's price. Additionally, you may evaluate how the addition of Direct Digital to your portfolios can decrease your overall portfolio volatility.