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Direct Digital Holdings , Inc. (NASDAQ:DRCT) President W Keith Smith, sold a total of $15,635 in company stock, according to recent SEC filings. The sale comes amid challenging times for the company, whose stock has declined over 88% in the past year and currently trades at $0.54, according to InvestingPro data.
The sales, which occurred on July 14 and July 15, involved Class A Common Stock. On July 14, Smith sold 20,476 shares at a weighted average price of $0.55, for a total value of $11,261.80. These shares were sold in multiple transactions at prices ranging from $0.53 to $0.59. On July 15, Smith sold 8,100 shares at a weighted average price of $0.54, for a total value of $4,374. These shares were sold in multiple transactions at prices ranging from $0.53 to $0.56. InvestingPro analysis indicates the company faces significant financial challenges, with a WEAK overall financial health score and concerning cash burn rate. Discover 10+ additional key insights about DRCT with an InvestingPro subscription.
Following these transactions, Smith indirectly owns 156,424 shares through SKW Financial LLC and directly owns 66,370 shares of Direct Digital Holdings.
The sales were executed under a pre-arranged 10b5-1 trading plan adopted by Smith on December 12, 2024.
In other recent news, Direct Digital Holdings reported its Q1 2025 earnings, where it surpassed earnings per share (EPS) expectations with a figure of -$0.35, compared to the projected -$0.41. However, the company’s revenue fell short, reaching $8.2 million against an anticipated $16.25 million. Direct Digital Holdings is also addressing a Nasdaq delisting notice due to non-compliance with the minimum bid price requirement, having its stock fall below $1.00 for 30 consecutive business days. The company has until November 10, 2025, to regain compliance by maintaining a closing stock price of $1.00 or higher for at least 10 consecutive business days.
Additionally, Direct Digital Holdings disclosed unregistered sales of equity securities, selling 2,300,000 shares of Class A Common Stock, resulting in cash proceeds of $1,387,015. These transactions were made under an existing Share Purchase Agreement with New Circle Principal Investments LLC. The company is exploring strategic financing options to strengthen its financial position and maintain compliance with Nasdaq’s listing requirements. Direct Digital Holdings has emphasized its focus on strategic initiatives, including digital advertising and cost management, to drive future growth. Analyst firms have not issued upgrades or downgrades in recent reports.
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