Disco (OTCMKTS:DSCSY) Shares Gap Down - Should You Sell?

Key Points

• Disco Corp shares gapped down significantly, opening at $33.90 from a previous close of $37.00, and last traded at $35.63 with a volume of 11,842 shares.
• Despite the recent drop, Macquarie upgraded Disco's rating from "hold" to "strong-buy", contributing to a consensus "Buy" rating among analysts.
• In its latest earnings report, Disco reported a higher-than-expected EPS of $0.15 and revenue of $622.39 million, surpassing the consensus estimate of $575.52 million.

Disco Corp (OTCMKTS:DSCSY - Get Free Report)'s share price gapped down before the market opened on Tuesday . The stock had previously closed at $37.00, but opened at $33.90. Disco shares last traded at $35.63, with a volume of 11,842 shares changing hands.

Analyst Upgrades and Downgrades

Separately, Macquarie raised Disco from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, July 9th. One analyst has rated the stock with a Strong Buy rating and one has issued a Hold rating to the stock. According to data from MarketBeat, Disco currently has a consensus rating of "Buy".

Disco Stock Down 4.1%

The company has a market cap of $38.48 billion, a price-to-earnings ratio of 47.32 and a beta of 1.49. The firm has a 50-day simple moving average of $29.05 and a 200 day simple moving average of $25.46.

Disco (OTCMKTS:DSCSY - Get Free Report) last released its quarterly earnings results on Thursday, July 17th. The company reported $0.15 EPS for the quarter, topping the consensus estimate of $0.12 by $0.03. The company had revenue of $622.39 million for the quarter, compared to analyst estimates of $575.52 million. Disco had a return on equity of 26.62% and a net margin of 30.90%. As a group, research analysts expect that Disco Corp will post 0.7 EPS for the current year.

Disco Company Profile

Disco Corporation manufactures and sells precision cutting, grinding, and polishing machines in Japan and internationally. Its precision machines include dicing saws, laser saws, grinders, polishers, wafer mounters, die separators, surface planers, and waterjet saws. The company also offers precision processing tools, such as dicing blades, grinding wheels, and dry polishing wheels; and other products, such as accessory equipment.

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