HOUSTON—Richard Cohen, a director at Direct Digital Holdings, Inc. (NASDAQ:DRCT), recently sold 7,057 shares of the company's Class A common stock. The transaction, which took place on December 18, 2024, was executed at a price of $0.85 per share, amounting to a total value of $5,998. The sale comes as DRCT trades near its 52-week low of $0.58, having declined 96% year-to-date, according to InvestingPro data.
Following this sale, Cohen holds 55,905 shares directly. The shares were sold to cover tax liabilities associated with a previously reported grant of 24,615 shares on December 9, 2024. InvestingPro analysis indicates the company currently trades below its Fair Value, though it maintains a weak financial health score amid significant debt obligations. For detailed insights and 19 additional ProTips about DRCT, subscribers can access the comprehensive Pro Research Report.
In other recent news, Direct Digital Holdings disclosed unregistered sales of 220,000 shares of its Class A common stock, representing more than five percent of the total shares issued. This transaction with New Circle Principle Investments LLC, an accredited investor, occurred under an existing Share Purchase Agreement. Additionally, the company's top executives, CEO Mark Walker and President Keith Smith, voluntarily rescinded their awarded shares and the underlying restricted stock units granted in March 2023.
Direct Digital Holdings faced significant challenges in the third quarter of 2024, with a year-over-year revenue drop of 85%, attributed to a damaging blog post by Adalytics Research. Despite these obstacles, the company 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. These are recent developments in the company's financial journey.
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