On March 09, shares of Direct Digital Holdings Inc. (DRCT) were trending heavily in the premarket after it plunged down to a new low in the previous session. There is no recent announcement from the company behind the latest bullish trend.
In the previous trading session, the stock plunged down to its new low of $1.18. DRCT closed the session in the red with a loss of 7.69% while the volume remained below the average. Following the downfall, the stock rebounded in the premarket on Wednesday. At the last check, the stock had increased by a humungous 85.00% in the premarket. Hence, DRCT was trading at a value of $2.22 per share at the time of writing. The volume of the share exchanged in the premarket session was 1.5 million at the time.
The demand-side and supply-side ad platform (DSP & SSP) provider, Direct Digital Holdings Inc. was founded in 2018.
What is Happening with DRCT?
It was only at the start of February 2022 that the company went public with its Initial public offering. Since its IPO, the stock has been on a downtrend, plunging down over 94%. DRCT stock started trading on Nasdaq at a price of $4.30 per share on February 11. Since then the stock had been going down to reach its latest low of $1.18 on March 08. In the following premarket session, the stock finally rebounded to surge over 150%. As there is no official announcement or SEC filing, the stock seems to be rebounding on external factors. It seems the investors are taking advantage of the stock’s low price and hence buying it before the company’s upcoming earnings. The company is set to declare its latest earning near the end of this month.
Upcoming Earnings
On March 02, the company announced that it will be reporting its Q4 and fiscal 2021 earnings on Tuesday, March 29, 2022. The company’s management will be hosting the earnings conference call at 5:00 pm EST, after the market close.
DRCT’s Initial Public Offering
On February 10, the company announced the pricing of its underwritten initial public offering of 2,800,000 units for gross proceeds of $15,400,000 approx. Each of the units consisted of a Class A common stock and a warrant for buying a Class A common stock. Additionally, a 45-day option for additional 420,000 common stock shares and/or warrants was also granted.
Therefore, the company’s Class A common stock and warrants commenced trading on Nasdaq under “DRCT” and DRCTW” respectively, on February 11.
The offering closed on February 15, 2022.