DoubleDown Interactive (NASDAQ:DDI) Hits New 12-Month High – Time to Buy?

DoubleDown Interactive Co., Ltd. Sponsored ADR (NASDAQ:DDI) shares hit a new 52-week high on Monday. The company traded as high as $15.53 and last traded at $15.7360, with a volume of 296,756 shares trading hands. The stock had previously closed at $13.58.

DoubleDown Interactive News Summary

Here are the key news stories impacting DoubleDown Interactive this week:

• Positive Sentiment: DoubleU Games has commenced an all-cash offer to buy the DoubleDown ADSs it does not already own for $16.25 per ADS. DoubleDown’s independent special committee and board unanimously found the transaction fair and recommended that unaffiliated shareholders tender their ADSs. The offer price is above the $15.70 reference price provided, supporting the stock while the offer remains outstanding. Tender offer announcement
• Neutral Sentiment: DoubleDown is scheduled to release quarterly earnings on Wednesday, giving investors another near-term catalyst; no results were included in the report. Earnings schedule
• Negative Sentiment: B. Riley Financial downgraded DDI from “buy” to “neutral,” potentially tempering investor enthusiasm beyond the acquisition offer. B. Riley recommendations
• Negative Sentiment: An investor-rights law firm said it is investigating whether shareholders are receiving a fair price in the proposed sale. The inquiry is not a finding of wrongdoing, but adds deal-related uncertainty. Shareholder investigation announcement

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on the company. B. Riley Financial cut DoubleDown Interactive from a “buy” rating to a “neutral” rating in a research note on Monday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of DoubleDown Interactive in a research report on Wednesday, November 4th. One research analyst has rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $19.50.

DoubleDown Interactive Stock Performance

The firm has a market capitalization of $777.93 million, a price-to-earnings ratio of 6.23 and a beta of 1.11. The business’s 50 day moving average price is $13.36 and its 200-day moving average price is $11.19. The company has a debt-to-equity ratio of 0.03, a current ratio of 18.67 and a quick ratio of 18.67.

DoubleDown Interactive (NASDAQ:DDI) last issued its earnings results on Tuesday, August 11th. The company reported $0.66 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.61 by $0.05. DoubleDown Interactive had a return on equity of 12.93% and a net margin of 32.91%. The business had revenue of $94.29 million during the quarter, compared to the consensus estimate of $92.90 million. Equities analysts forecast that DoubleDown Interactive Co., Ltd. Sponsored ADR will post 2.58 EPS for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Boston Partners grew its holdings in shares of DoubleDown Interactive by 58.6% in the 3rd quarter. Boston Partners now owns 261,806 shares of the company’s stock worth $3,479,000 after acquiring an additional 96,755 shares during the period. Renaissance Technologies LLC boosted its position in DoubleDown Interactive by 35.7% during the first quarter. Renaissance Technologies LLC now owns 73,256 shares of the company’s stock worth $619,000 after purchasing an additional 19,256 shares in the last quarter. Aristides Capital LLC grew its holdings in DoubleDown Interactive by 15.5% in the first quarter. Aristides Capital LLC now owns 39,491 shares of the company’s stock valued at $334,000 after purchasing an additional 5,297 shares during the last quarter. Eurizon Capital SGR S.p.A. acquired a new stake in DoubleDown Interactive in the third quarter valued at $282,000. Finally, GAMMA Investing LLC grew its holdings in DoubleDown Interactive by 11.3% in the third quarter. GAMMA Investing LLC now owns 15,064 shares of the company’s stock valued at $200,000 after purchasing an additional 1,532 shares during the last quarter.

About DoubleDown Interactive

DoubleDown Interactive is a digital gaming company focused on developing and publishing social casino games for mobile devices and online platforms. Its flagship title, DoubleDown Casino, offers virtual slot machines and other casino-style games for entertainment, using virtual currency rather than real-money wagering. The company’s portfolio also includes other free-to-play casino games, which combine casino-style play with features such as in-game rewards and social interaction. Its games are distributed through app stores and web platforms and reach players in North America and other international markets.