HOUSTON—Mark Walker, Chairman and CEO of Direct Digital Holdings, Inc. (NASDAQ:DRCT), has recently sold a significant portion of his holdings in the company, according to a filing with the Securities and Exchange Commission. The sale comes as the stock trades near its 52-week low of $0.76, having declined about 95% year-to-date. The transactions, completed over three consecutive days, saw Walker dispose of a total of 31,800 shares, resulting in proceeds of approximately $28,426.
The sales were executed at varying prices, ranging from $0.82 to $1.01 per share. On December 10, Walker sold 10,000 shares at a weighted average price of $1.01. The following day, he sold an additional 15,000 shares at an average price of $0.85. Finally, on December 12, he sold 6,800 shares at an average price of $0.82.
Following these transactions, Walker holds 168,200 shares indirectly through AJN Energy & Transport Ventures, LLC. These sales come as part of routine adjustments to his portfolio, with the remaining shares reflecting his ongoing investment in the company.
In other recent news, Direct Digital Holdings reported a significant decline in its third-quarter revenue for 2024, with a year-over-year drop of 85%, from $59.5 million to $9.1 million. This decline was primarily attributed to a damaging blog post by Adalytics Research regarding their supply-side platform, Colossus SSP. In response to these challenges, the company has outlined a recovery strategy, which includes a diversification and optimization plan.
Furthermore, Direct Digital Holdings disclosed the sale of 220,000 shares of its Class A common stock in unregistered transactions, totaling $241,095.80. The sale was conducted under an Equity Reserve Facility as part of a Share Purchase Agreement with New Circle Principle Investments LLC.
The company also provided revised revenue guidance for fiscal years 2024 and 2025, projecting $60 million to $70 million for FY 2024 and $90 million to $110 million for FY 2025. Additionally, Direct Digital Holdings has secured a $20 million equity reserve facility with New Circle Principal Investments, indicating a financial buffer for the company.
InvestingPro analysis rates the company's financial health as weak, with significant debt burden and rapid cash burn identified as key concerns. These are recent developments that investors should take into account when considering Direct Digital Holdings.
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