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Locke Mistelle, a director at Direct Digital Holdings , Inc. (NASDAQ:DRCT), recently sold 1,773 shares of the company’s Class A Common Stock on January 16. The shares were sold at a price of $1.30 each, totaling approximately $2,304. The transaction comes as the stock trades near $1.24, down over 70% in the past six months. According to InvestingPro analysis, the company’s financial health score is currently rated as WEAK.
In addition to the sale, Mistelle acquired 7,246 shares through the vesting of restricted stock units on the same day. These shares were acquired without any cash transaction involved, as each restricted stock unit represents a right to one share of the company’s stock upon settlement. Following these transactions, Mistelle’s direct holdings amount to 35,674 shares. With a market capitalization of just $5.15 million, DRCT currently appears undervalued according to InvestingPro Fair Value estimates. Subscribers can access 16 additional ProTips and a comprehensive Pro Research Report for deeper insights into the company’s prospects.
In other recent news, Direct Digital Holdings reported significant financial developments. The advertising services company disclosed the sale of 1.36 million shares of its Class A common stock in unregistered transactions to New Circle Principle Investments LLC. The sales, which took place between the end of December 2024 and early January 2025, totaled approximately $2.34 million in cash after discounts.
Simultaneously, Direct Digital Holdings has made strategic amendments to its credit agreements, prepaying $5 million on revolving credit notes and securing a $6 million term loan from Lafayette Square Loan Servicing. These moves are part of an ongoing effort to manage the company’s capital structure and liquidity.
The company also experienced a sharp revenue drop of 85%, from $59.5 million to $9.1 million. However, Direct Digital Holdings 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.
Lastly, during its 2024 Annual Meeting of stockholders, Direct Digital Holdings received approval for all four proposals on the agenda, including the issuance of up to 8.5 million shares of Class A Common Stock. These are the recent developments in the company, as reported in their recent filings and earnings call.
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