Direct digital president Keith Smith sells $31,396 in shares

Published 28/03/2025, 00:58
Direct digital president Keith Smith sells $31,396 in shares

Keith Smith, President of Direct Digital Holdings , Inc. (NASDAQ:DRCT), a company currently valued at $11.84 million and trading at $1.33 per share, recently executed a series of stock transactions, according to a Form 4 filing with the Securities and Exchange Commission. According to InvestingPro analysis, the company operates with a significant debt burden of $37.83 million and a concerning current ratio of 0.25. On March 25, 2025, Smith sold 7,700 shares at an average price of $0.76 per share. The following day, he sold an additional 20,563 shares at an average price of $0.78 per share. On March 27, 2025, Smith completed the sale of 12,186 shares, also at an average price of $0.78 per share. These sales, which were executed under a 10b5-1 trading plan, amounted to a total of $31,396. For deeper insights into insider trading patterns and comprehensive financial analysis, including 18 additional ProTips, consider accessing the full research report on InvestingPro.

In addition to these transactions, Smith acquired 9,970 shares through the vesting of restricted stock units on March 20, 2025, without any cash outlay, as the shares were acquired at no cost. Furthermore, 2,957 shares were withheld to satisfy tax liabilities related to the vesting of these restricted stock units, valued at $0.79 per share, totaling $2,336.

Following these transactions, Smith’s total direct and indirect ownership of Direct Digital Holdings stands at 12,186 shares, all held indirectly through SKW Financial LLC.

In other recent news, Direct Digital Holdings Inc. reported a significant earnings miss for the fourth quarter of 2024. The company announced earnings per share of -$0.54, which was substantially below the forecasted $0.11, marking a negative surprise of $0.65. Revenue also saw a steep decline, falling to $9.1 million from $41 million in the same quarter the previous year. Despite the revenue drop, Direct Digital improved its gross margin from 23% to 32%, suggesting better cost management. The company has set a revenue guidance range of $90-110 million for 2025, with expectations of strong growth in the latter half of the year. Direct Digital is focusing on middle-market advertising and new initiatives to drive future profitability. CEO Mark Walker highlighted strategic initiatives aimed at optimizing supply path efficiency and exploring new verticals. Analysts from The Benchmark Company and Noble Capital Markets have shown interest in the company’s recovery strategies and cost-saving measures.

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