Disco (OTCMKTS:DSCSY) Shares Gap Down - Time to Sell?

Key Points

• Disco shares gapped down at the open (from $48.11 to $46.3501) and last traded around $47.30 on very light volume (786 shares), despite a modest intraday uptick of about 0.7%.
• Zacks Research upgraded Disco to a Strong Buy; two analysts now rate the stock Strong Buy and MarketBeat shows the company's consensus rating as Strong Buy.
• Recent results showed a revenue beat ($848.13M vs. $771.53M estimate) and strong margins (net margin 30.95%), though the stock trades at a high P/E of 57.09 with a market cap near $50.8B.

Disco Corp (OTCMKTS:DSCSY - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $48.11, but opened at $46.3501. Disco shares last traded at $47.30, with a volume of 786 shares traded.

Analysts Set New Price Targets

Separately, Zacks Research upgraded Disco from a "hold" rating to a "strong-buy" rating in a research note on Monday, April 20th. Two investment analysts have rated the stock with a Strong Buy rating, According to data from MarketBeat, the company currently has an average rating of "Strong Buy".

Disco Trading Up 0.7%

The company has a 50 day moving average of $44.51 and a 200-day moving average of $38.47. The firm has a market capitalization of $50.78 billion, a P/E ratio of 57.09 and a beta of 1.63.

Disco (OTCMKTS:DSCSY - Get Free Report) last released its quarterly earnings results on Wednesday, April 22nd. The company reported $0.25 earnings per share (EPS) for the quarter. The business had revenue of $848.13 million during the quarter, compared to the consensus estimate of $771.53 million. Disco had a return on equity of 26.03% and a net margin of 30.95%. As a group, sell-side analysts forecast that Disco Corp will post 1.07 EPS for the current fiscal year.

Disco Company Profile

Disco OTCMKTS: DSCSY is a manufacturer of precision processing equipment and consumables for the semiconductor and electronics industries. The company's product portfolio includes wafer dicing saws, wafer thinning and grinding systems, laser dicing equipment, polishing systems, and diamond blades and wheels, along with associated tooling and process consumables designed for high-precision cutting and surface finishing.

Disco's products are used in critical back-end semiconductor manufacturing steps such as dicing, singulation, thinning, surface preparation and polishing across applications including IC packaging, power devices, LEDs, MEMS and sensors.

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