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The latest update is out from Direct Digital Holdings ( (DRCT) ).
On January 23, 2026, Direct Digital Holdings, Inc. amended its existing equity reserve facility with New Circle Principal Investments LLC, adjusting the pricing formula for one of two options governing the sale of its Class A common stock while leaving the rest of the agreement unchanged. Under the revised terms, the company can now sell shares to New Circle either at the lowest sales price on the relevant trading day or at 97.5% of the lowest volume-weighted average price over three consecutive trading days after a purchase notice, with any proceeds expected to be used primarily to reduce debt if required under its credit arrangements and for general corporate purposes, though there is no assurance that any shares will ultimately be issued under the facility.
The most recent analyst rating on (DRCT) stock is a Hold with a $3.00 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 weak financial performance (deep losses, negative equity, and cash burn). Technicals also remain unfavorable with a broader downtrend. Partial offsets come from cost reductions and debt conversion noted on the earnings call, but near-term listing/dilution-related corporate actions add risk.
To see Spark’s full report on DRCT stock, click here.
More about Direct Digital Holdings
Average Trading Volume: 2,784,039
Technical Sentiment Signal: Sell
Current Market Cap: $3.67M
See more insights into DRCT stock on TipRanks’ Stock Analysis page.