Locke Mistelle, a director at Direct Digital Holdings, Inc. (NASDAQ:DRCT), has recently sold a portion of their holdings in the company. According to a Form 4 filing with the Securities and Exchange Commission, Mistelle sold 7,048 shares of Class A Common Stock on December 18, 2024. The shares were sold at a price of $0.85 each, resulting in a total transaction value of approximately $5,990. The sale comes as the stock trades near its 52-week low of $0.58, having declined over 96% year-to-date. According to InvestingPro analysis, the stock is currently trading below its Fair Value.
Following this transaction, Mistelle retains ownership of 30,201 shares in the company. The sale was conducted to satisfy tax liabilities related to a prior grant of shares. InvestingPro data reveals the company's overall financial health score is currently rated as Weak, with 18 additional key insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, Direct Digital Holdings reported significant financial developments. The company disclosed the sale of 220,000 shares of its Class A common stock in unregistered transactions, totaling $241,095.80, according to recent SEC filings. This sale represents more than five percent of the total shares issued and outstanding, with transactions conducted under a Share Purchase Agreement with New Circle Principle Investments LLC.
In addition, the company experienced severe financial challenges in the third quarter of 2024, with a year-over-year revenue drop of 85%, from $59.5 million to $9.1 million. This decline was primarily attributed to a damaging blog post by Adalytics Research.
Despite these challenges, Direct Digital Holdings outlined a recovery strategy, including a diversification and optimization plan. The company provided revised revenue guidance for fiscal years 2024 and 2025, with projections set at $60 million to $70 million for FY 2024 and $90 million to $110 million for FY 2025. Further, Direct Digital Holdings secured a $20 million equity reserve facility with New Circle Principle Investments, providing a financial buffer for the company. These are recent developments that offer insight into the company's current financial situation.
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