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Direct Digital Holdings ( (DRCT) ) has issued an update.
On January 9, 2026, Direct Digital Holdings filed an amendment to its Delaware charter to implement a 55‑to‑1 reverse stock split of its Class A and Class B common stock, following shareholder and board approvals on December 30, 2025, with the split becoming effective just after midnight on January 12, 2026. The move, announced in a January 8, 2026 press release, reduces the outstanding Class A shares from roughly 68.9 million to about 1.3 million and Class B shares from about 9.3 million to 0.2 million, keeps the Nasdaq ticker “DRCT” intact but assigns a new CUSIP, and replaces fractional entitlements with cash payments, a restructuring aimed at lifting the share price to meet Nasdaq’s $1.00 minimum bid requirement and preserving the company’s listing and visibility among institutional investors.
The most recent analyst rating on (DRCT) stock is a Hold with a $0.06 price target. To see the full list of analyst forecasts on Direct Digital Holdings stock, see the DRCT Stock Forecast page.
Spark’s Take on DRCT Stock
According to Spark, TipRanks’ AI Analyst, DRCT is a Neutral.
The score is held down primarily by severely weak financial performance (losses, negative equity, and cash burn) and a persistent bearish technical trend (price below all key moving averages with negative MACD). Earnings-call actions improved flexibility and reduced expenses, but continued revenue/margin pressure and corporate actions tied to potential dilution and Nasdaq compliance keep overall risk high.
To see Spark’s full report on DRCT stock, click here.
More about Direct Digital Holdings
Direct Digital Holdings (Nasdaq: DRCT) is an advertising and marketing technology company that combines sell-side and buy-side digital solutions to deliver data-driven media strategies for brands, agencies and publishers. It operates Colossus SSP, a sell-side platform providing curated access to premium, growth-oriented media properties across the digital ecosystem, and Orange 142, a buy-side operation focused on customized, audience-centric digital marketing campaigns.
Average Trading Volume: 18,664,009
Technical Sentiment Signal: Sell
Current Market Cap: $2.08M
Learn more about DRCT stock on TipRanks’ Stock Analysis page.