Mark Walker, Chairman and CEO of Direct Digital Holdings, Inc. (NASDAQ:DRCT), recently sold a portion of his holdings in the company. The sale comes as the stock trades near its 52-week low of $0.65, having declined over 95% year-to-date. According to a filing with the Securities and Exchange Commission, Walker disposed of a total of 30,900 shares of Class A Common Stock in two separate transactions.
The first transaction occurred on December 13, where Walker sold 22,793 shares at a weighted average price of $0.73 per share. The second transaction took place on December 16, with the sale of 8,107 shares at a weighted average price of $0.70 per share. The total value of these transactions amounted to $22,313, representing a small fraction of the company's current $2.51M market capitalization.
Following these sales, Walker holds 137,300 shares indirectly through AJN Energy & Transport Ventures, LLC. This activity was disclosed in a Form 4 filing with the SEC.
In other recent news, Direct Digital Holdings experienced considerable challenges in its third quarter of 2024, marked by an 85% drop in year-over-year revenue, from $59.5 million in Q3 2023 to $9.1 million in Q3 2024. This decline was primarily attributed to a damaging blog post by Adalytics Research about their supply-side platform, Colossus SSP. Despite these difficulties, the company has outlined a recovery strategy, including a diversification and optimization plan.
Direct Digital Holdings also disclosed the sale of 220,000 shares of its Class A common stock in unregistered transactions for a total cash consideration of $241,095.80, as per a recent SEC filing. The sale was conducted under an Equity Reserve Facility as part of a Share Purchase Agreement with New Circle Principle Investments LLC.
The company provided revised revenue guidance for fiscal years 2024 and 2025, projecting $60 million to $70 million for FY 2024 and $90 million to $110 million for FY 2025. Furthermore, Direct Digital Holdings has secured a $20 million equity reserve facility with New Circle Principal Investments, indicating a financial buffer for the company. These are recent developments and part of the broader financial landscape for Direct Digital Holdings.
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