CS Disco, Inc. (NYSE:LAW) Short Interest Up 33.2% in March

Key Points

• Short interest rose 33.2% in March to 1,400,344 shares (about 2.6% of shares outstanding), producing a short-interest ratio of roughly 2.5 days based on average daily volume.
• Insider activity was notable: CEO Eric Friedrichsen bought 15,500 shares while EVP Melanie Antoon sold 9,289, and insiders net purchased 1,090,200 shares vs. 27,711 sold in the last three months, leaving insiders with about 16.10% ownership.
• Institutions hold roughly 58.05% of the stock, and analyst coverage is mixed (two Buy, one Hold, one Sell) with a MarketBeat consensus rating of "Hold" and a $8.00 average price target.

CS Disco, Inc. (NYSE:LAW - Get Free Report) was the recipient of a significant growth in short interest in the month of March. As of March 13th, there was short interest totaling 1,400,344 shares, a growth of 33.2% from the February 26th total of 1,051,263 shares. Based on an average daily trading volume, of 552,360 shares, the short-interest ratio is currently 2.5 days. Approximately 2.6% of the shares of the company are sold short.

CS Disco Price Performance

LAW traded down $0.36 during midday trading on Friday, hitting $3.68. 313,073 shares of the company's stock traded hands, compared to its average volume of 493,052. The company has a market cap of $232.93 million, a PE ratio of -5.11 and a beta of 2.15. The stock's fifty day simple moving average is $4.50 and its 200-day simple moving average is $6.10. CS Disco has a one year low of $2.45 and a one year high of $9.11.

Insider Buying and Selling

In other news, EVP Melanie Antoon sold 9,289 shares of the company's stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $3.07, for a total transaction of $28,517.23. Following the completion of the transaction, the executive vice president owned 203,421 shares in the company, valued at approximately $624,502.47. This represents a 4.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Eric Friedrichsen acquired 15,500 shares of the company's stock in a transaction that occurred on Friday, February 27th. The stock was purchased at an average cost of $2.90 per share, for a total transaction of $44,950.00. Following the acquisition, the chief executive officer owned 1,508,172 shares in the company, valued at approximately $4,373,698.80. This trade represents a 1.04% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. In the last three months, insiders purchased 1,090,200 shares of company stock valued at $3,475,943 and sold 27,711 shares valued at $85,073. 16.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of LAW. Topline Capital Management LLC lifted its holdings in shares of CS Disco by 8.1% during the third quarter. Topline Capital Management LLC now owns 3,206,003 shares of the company's stock worth $20,711,000 after buying an additional 240,735 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of CS Disco by 1.7% during the 3rd quarter. Vanguard Group Inc. now owns 1,959,087 shares of the company's stock worth $12,656,000 after buying an additional 33,672 shares during the period. Formula Growth Ltd. lifted its holdings in shares of CS Disco by 3.8% during the second quarter. Formula Growth Ltd. now owns 830,000 shares of the company's stock valued at $3,627,000 after acquiring an additional 30,000 shares during the period. Dimensional Fund Advisors LP lifted its holdings in CS Disco by 3.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 757,994 shares of the company's stock valued at $5,882,000 after purchasing an additional 26,608 shares during the last quarter. Finally, Norges Bank acquired a new position in shares of CS Disco in the 2nd quarter worth approximately $2,863,000. Institutional investors and hedge funds own 58.05% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on LAW shares. Weiss Ratings reissued a "sell (d-)" rating on shares of CS Disco in a report on Wednesday, January 21st. Canaccord Genuity Group decreased their target price on shares of CS Disco from $9.00 to $6.00 and set a "buy" rating for the company in a research report on Thursday, February 26th. Wall Street Zen cut CS Disco from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Needham & Company LLC reaffirmed a "buy" rating and issued a $10.00 price objective on shares of CS Disco in a research note on Thursday, February 26th. Finally, Jefferies Financial Group boosted their target price on CS Disco from $6.00 to $8.00 and gave the stock a "hold" rating in a research report on Monday, January 5th. Two analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, CS Disco currently has an average rating of "Hold" and a consensus price target of $8.00.

CS Disco Company Profile

CS Disco, Inc is a provider of cloud-native, artificial intelligence-driven legal applications designed to streamline e-discovery, document review and compliance processes for law firms and corporate legal departments. The Austin, Texas–based company offers a unified platform that automates labor-intensive tasks using machine learning and predictive analytics, enabling legal professionals to process, search and review large volumes of data with greater speed and accuracy.

At the core of CS Disco's product suite is its flagship e-discovery application, which supports early case assessment, data processing, review analytics and production workflows.

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