tiprankstipranks
Trending News
More News >

Direct Digital Holdings Faces Nasdaq Non-Compliance Notice

Story Highlights
  • Direct Digital Holdings faces potential delisting from Nasdaq due to non-compliance with bid price requirements.
  • The company sold 1,100,000 shares of Class A Common Stock for $570,924 in May 2025.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Direct Digital Holdings Faces Nasdaq Non-Compliance Notice

Confident Investing Starts Here:

An announcement from Direct Digital Holdings ( (DRCT) ) is now available.

On May 12, 2025, Direct Digital Holdings, Inc. received a notice from Nasdaq indicating non-compliance with the minimum bid price requirement, as its Class A common stock was below $1.00 per share for 30 consecutive business days. The company has until November 10, 2025, to regain compliance, potentially through a reverse stock split, or face delisting. Additionally, between May 13 and May 16, 2025, the company sold 1,100,000 shares of Class A Common Stock for $570,924, exceeding five percent of the total shares issued and outstanding, in transactions with New Circle Principal Investments LLC.

The most recent analyst rating on (DRCT) stock is a Buy with a $7.50 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.

Direct Digital Holdings is facing substantial financial and operational challenges. The significant decline in revenue, negative profitability, and high leverage are major concerns. While there are positive signs in cost-cutting and buy-side revenue growth, the overall financial health is weak. The technical indicators suggest a bearish trend, and the company’s valuation is unattractive due to negative earnings. Despite maintaining optimistic guidance, the recovery from past disruptions remains uncertain, resulting in a low overall score.

To see Spark’s full report on DRCT stock, click here.

More about Direct Digital Holdings

Average Trading Volume: 1,534,318

Technical Sentiment Signal: Sell

Current Market Cap: $10.33M

For a thorough assessment of DRCT stock, go to TipRanks’ Stock Analysis page.

Disclaimer & DisclosureReport an Issue

Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App
1