Direct Digital Holdings Issues Series A Preferred Stock

Direct Digital Holdings ( (DRCT) ) just unveiled an announcement.

On August 8, 2025, Direct Digital Holdings‘ board authorized the issuance of Series A Convertible Preferred Stock, establishing its rights and preferences. This stock will carry a cumulative dividend rate of 10% per annum and will be senior to common stock in terms of dividend rights and liquidation preferences. The issuance is expected to impact the company’s capital structure by providing protective provisions for holders, ensuring their rights in corporate decisions, and allowing conversion into common stock under specific conditions.

The most recent analyst rating on (DRCT) stock is a Buy with a $2.50 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.

The overall stock score of 43 reflects significant financial challenges, including negative profitability and high leverage. Technical indicators suggest a bearish trend, and valuation metrics are poor. While there are some positive developments from the earnings call, they are overshadowed by significant declines in revenue and increased net losses. The risk of Nasdaq delisting further exacerbates the company’s challenges.

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

More about Direct Digital Holdings

Average Trading Volume: 421,243

Technical Sentiment Signal: Sell

Current Market Cap: $9.57M

Learn more about DRCT stock on TipRanks’ Stock Analysis page.